2018-Digest-Chapter-16.Pdf
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Table of Contents CHAPTER 16 ................................................................................................................................ 534 Sanctions, Export Controls, and Certain Other Restrictions ............................................... 534 A. IMPOSITION, IMPLEMENTATION, AND MODIFICATION OF SANCTIONS .. 534 1. Iran ................................................................................................................................... 534 a. The Joint Comprehensive Plan of Action (“JCPOA”) ................................................. 534 b. Implementation of UN Security Council resolutions.................................................... 545 c. U.S. sanctions and other controls ................................................................................ 545 2. Syria ................................................................................................................................. 547 3. Cuba ................................................................................................................................. 548 4. Venezuela ......................................................................................................................... 548 5. Democratic People’s Republic of Korea .......................................................................... 553 a. General ........................................................................................................................ 553 b. Human rights ................................................................................................................ 553 c. Nonproliferation ........................................................................................................... 555 6. Russia ............................................................................................................................... 566 a. Chemical and Biological Weapons Control and Warfare Elimination Act Sanctions . 566 b. Sanctions in response to Russia’s actions in Ukraine .................................................. 570 c. Section 231 of CAATSA ................................................................................................ 573 7. Nonproliferation ............................................................................................................... 585 a. Country-specific sanctions ........................................................................................... 585 b. Iran, North Korea, and Syria Nonproliferation Act (“INKSNA”) ............................... 585 8. Terrorism.......................................................................................................................... 586 a. UN and other coordinated multilateral action ............................................................. 586 b. U.S. targeted financial sanctions ................................................................................. 586 c. Annual certification regarding cooperation in U.S. antiterrorism efforts ................... 595 9. Cyber Activity and Election Interference ........................................................................ 595 a. Malicious Cyber-Enabled Activities ............................................................................. 595 b. Election Interference .................................................................................................... 597 10. Global Magnitsky Act and Measures Aimed at Corruption and Human Rights Violations… ............................................................................................................................ 598 a. Global Magnitsky Act and E.O. 13818 ........................................................................ 598 b. Visa Restrictions pursuant to Section 7031(c) of the 2017 Consolidated Appropriations Act… .................................................................................................................................... 612 11. Targeted Sanctions Relating to Threats to Democratic Process and Restoration of Peace, Security, and Stability ............................................................................................................. 614 a. Nicaragua ..................................................................................................................... 614 b. Burma ........................................................................................................................... 616 c. Sudan ........................................................................................................................... 617 d. South Sudan .................................................................................................................. 619 e. Libya ............................................................................................................................. 622 f. Mid-East Peace Process ............................................................................................... 624 12. Transnational Crime ......................................................................................................... 624 B. EXPORT CONTROLS ..................................................................................................... 624 1. Wassenaar Arrangement .................................................................................................. 624 2. Debarments ...................................................................................................................... 625 3. Export Controls on South Sudan...................................................................................... 625 4. Export Control Litigation ................................................................................................. 627 a. FLIR Systems ................................................................................................................ 627 b. Defense Distributed ...................................................................................................... 628 Cross References ....................................................................................................................... 632 CHAPTER 16 Sanctions, Export Controls, and Certain Other Restrictions This chapter discusses selected developments during 2018 relating to sanctions, export controls, and certain other restrictions relating to travel or U.S. government assistance. It does not cover developments in many of the United States’ longstanding financial sanctions regimes, which are discussed in detail at https://www.treasury.gov/resource- center/sanctions/Pages/default.aspx. It also does not cover comprehensively developments relating to the export control programs administered by the Commerce Department or the defense trade control programs administered by the State Department. Details on the State Department’s defense trade control programs are available at https://pmddtc.state.gov/ddtc_public. A. IMPOSITION, IMPLEMENTATION, AND MODIFICATION OF SANCTIONS 1. Iran a. The Joint Comprehensive Plan of Action (“JCPOA”) As discussed in Digest 2015 at 634-35, the P5+1 and Iran concluded the Joint Comprehensive Plan of Action (“JCPOA”) in 2015 to address concerns with Iran’s nuclear program. Under the JCPOA, the U.S. committed to lift nuclear-related secondary sanctions—which are generally directed toward non-U.S. persons for specified conduct involving Iran that occurs entirely outside of U.S. jurisdiction and does not involve U.S. persons—but left non-nuclear-related sanctions in place. On May 8, 2018, President Trump announced his decision to withdraw from the JCPOA. The President’s remarks are available at https://www.whitehouse.gov/briefings- statements/remarks-president-trump-joint-comprehensive-plan-action/, and excerpted below. See also the May 8, 2018 White House fact sheet, available at https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-ending- united-states-participation-unacceptable-iran-deal/. 534 535 DIGEST OF UNITED STATES PRACTICE IN INTERNATIONAL LAW ___________________ * * * * Over the past few months, we have engaged extensively with our allies and partners around the world, including France, Germany, and the United Kingdom. We have also consulted with our friends from across the Middle East. We are unified in our understanding of the threat and in our conviction that Iran must never acquire a nuclear weapon. After these consultations, it is clear to me that we cannot prevent an Iranian nuclear bomb under the decaying and rotten structure of the current agreement. The Iran deal is defective at its core. If we do nothing, we know exactly what will happen. In just a short period of time, the world’s leading state sponsor of terror will be on the cusp of acquiring the world’s most dangerous weapons. Therefore, I am announcing today that the United States will withdraw from the Iran nuclear deal. In a few moments, I will sign a presidential memorandum to begin reinstating U.S. nuclear sanctions on the Iranian regime. We will be instituting the highest level of economic sanction. Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States. * * * * Secretary of State Mike Pompeo’s statement on the decision to withdraw from the JCPOA follows and is available at https://ir.usembassy.gov/secretary-pompeo-on- president-trumps-decision-to-withdraw-from-the-jcpoa/. As we exit the Iran deal, we will be working with our allies to find a real, comprehensive, and lasting