The first ship to carry Ukrainian grain exports from the Black Sea left the port of Odessa Aug. 1, the White House said, about five months after Russia invaded Ukraine and halted the country’s agricultural shipments. The successful export was a direct result of an agreement between U.N., Russia, Ukraine and Turkey last month (see 2207250004) to start allowing safe passage of Ukrainian exports through the Black Sea, National Security Council spokesperson John Kirby said.
Arbitrators at the World Trade Organization affirmed a WTO dispute panel ruling in a case brought by the EU over certain measures by Turkey concerning the production, importation and marketing of pharmaceutical products. The arbitrators said that Turkey should bring their measures into conformity with WTO obligations. In particular, the arbitrators confirmed the panel's ruling which said that Turkey's localization measure discriminates against foreign pharmaceutical products since it is not a form of government procurement and is not meant to achieve public health objectives nor compliance with laws requiring Turkey to ensure effective and accessible sustainable healthcare for its citizens.
The U.N., Russia, Ukraine and Turkey agreed to a deal to allow safe passage of Ukrainian agricultural exports through the Black Sea, the State Department said last week. The deal -- which is expected to be “fully operational” in a few weeks, Reuters reported July 22 -- comes amid months of halted Ukrainian exports of grain and other staple food crops (see 2204080037). The agreement is a “positive step towards addressing the far-reaching impacts of Russia’s war,” the State Department said, but stressed that Russia must be held “accountable for this deal, ending its effective blockade of Ukraine’s ports.”
Turkey recently lifted export bans on butter and olive oil about five months after imposing restrictions (see 2203170012), the USDA Foreign Agricultural Service said in a July 20 report. The country replaced its butter export ban with a 7,000 metric ton monthly quota for July, August and September; it removed the ban on olive oil but didn't place a quota on it. The country hasn’t yet notified the changes to the World Trade Organization, USDA said.
The Bureau of Industry and Security on June 16 suspended the export privileges of Belavia Belarusian Airlines, the country’s state-owned national airline, for violating U.S. export controls against Belarus. BIS issued a 180-day temporary denial order for Belavia, which bans it from participating in transactions subject to the Export Administration Regulations.
Some Russian airlines are considering relocating to Turkey to skirt sanctions that so far have stopped them from leasing aircraft and accessing maintenance and repair facilities. Pegas Touristik, owner of Nordwind Airlines, and Anex Tourism Group, operator of Azur Air, have had discussions with leasing companies in Turkey about getting planes, according to people familiar with the matter, Bloomberg reported June 8. Azur Air and Nordwind primarily ferry Russian tourists to marquee locations and are controlled by Turkish businessmen. Since the carriers are not sanctioned, their relocation wouldn't violate the restrictions, Bloomberg said. The EU's sanctions led to companies terminating leases to airlines in Russia and banned the carriers from flying in European airspace.
The Bureau of Industry and Security June 6 charged Russian oligarch Roman Abramovich with violating U.S. export controls by exporting U.S.-origin aircraft to Russia without the required licenses (see 2202240069). BIS said Abramovich’s planes flew to and from Russia in March, days after the agency announced new export controls on Russia-related aircraft.
World Trade Organization members adopted two panel reports at the May 31 meeting of the Dispute Settlement Body, the WTO said May 31. The reports concern Mexico's challenge to Costa Rica's restrictions on fresh avocado imports from Mexico and Turkey's challenge to the EU's safeguard measure restricting certain steel product imports. Neither report is being appealed to the defunct Appellate Body.
The Bureau of Industry and Security soon will introduce a congressional notification requirement for certain firearm exports, the agency said in a final rule. The change, effective July 18, will add a new section to the Export Administration Regulations that will require congressional reporting for certain semiautomatic firearms shipments valued at $4 million or more and destined to certain countries. The requirement will apply to certain guns whose export control authority was transferred from the State Department to the Commerce Department in 2020 (see 2001170030).
The Office of Foreign Assets Control added a Hamas finance official, three Hamas financial facilitators, and six companies that have generated revenues for Hamas to its Specially Designated Nationals list, it announced May 24. The "expansive network" has generated revenue for the group through the management of an international investment portfolio, a related press release said. Hamas’s Investment Office is in charge of the day-to-day management of its estimated $500 million portfolio, including companies operating in Sudan, Turkey, Saudi Arabia, Algeria and the United Arab Emirates. “Today’s action targets the individuals and companies that Hamas uses to conceal and launder funds. ... The United States is committed to denying Hamas the ability to generate and move funds,” Assistant Secretary of the Treasury for Terrorist Financing and Financial Crimes Elizabeth Rosenberg said.