Sanctions and Export Control | UK Regulatory Outlook October 2023

New Export Control Regulations to come into force

The Export Control Joint Unit announced that the Export Control (Amendment) (No 2) Regulations 2023 will come into force on 23 October 2023, amending the Export Control Order 2008 and the retained Dual-Use Regulation (EC) 428/2009, setting up a community regime for the control of exports and the transfer, brokering and transit of dual-use items.

The regulations will amend the 2008 order and the retained Dual-Use Regulation as follows:

• removing Syria from Part 2 of Schedule 4 to the 2008 order; and
• correcting two drafting errors in the Dual-Use Regulation.

The consolidated list of strategic military and dual-use items that require export authorisation will also be amended and republished in due course.

FCDO statement following Boris Mints judgment

On 16 October 2023, the Foreign, Commonwealth & Development Office (FCDO) issued a statement following the judgment in Boris Mints v PJSC National Banke and PJSC Bank Otrkitie Financial Corporation.

The FCDO states that it is "carefully considering" the impact of the judgment, and in particular the Court of Appeal's views that the Central Bank of Russia, is "controlled" by designated persons by virtue of the political office. The FCDO clarifies that there is "no presumption that a private entity based in or incorporated in Russia or in any jurisdiction in which a public official is designated" is sufficient evidence to demonstrate that the relevant official exercises control over that entity.

In future, the FCDO will look to designate a public body where possible when designating a public official, if it considered that the relevant official was exercising control over the public body. See our Insight for a detailed analysis of the judgment.

UK and EU Russian iron and steel import ban in force

As previously reported, UK sanctions in relation to the import of Russian iron and steel products processed in third countries came into force on 30 September 2023. The Department for Business & Trade guidance on these measures can be found here.

OFSI issues new general licences

The Office of Financial Sanctions Implementation (OFSI) has issued the following general licences:

• General Licence INT/2023/3626884 (payments to Companies House) – this general licence permits UK designated persons to make payments to Companies House for fees owned by or due for filing a confirmation statement in respect of UK companies registered with Companies House, and the payment of late filing penalty fees. The general licence takes effect from 6 October 2023 and is of indefinite duration.
• General Licence INT/2023/3566356 (corresponding banking payments) – this general licence is issued for the purpose of providing certainty that a credit or financial institution may return a payment to another credit or financial institution which sent the relevant payment directly to it. The licence takes effect from 29 September 2023 and expires on 1 December 2023.

OFSI amends UK general licences

OFSI has amended the following general licences:

• General Licence INT/2022/2300292 (payment to utility companies for gas and electricity by UK designated persons who own or rent properties in the UK) – the duration of the general licence has been extended and is now of indefinite duration.
• General Licence INT/2023/3024200 (permitting UK persons who are owed funds or economic resources by designated persons, under a contract that was signed before the designated person was designated, to receive payment) – the duration has been extended and the general licence will now expire on 21 May 2024.