US sanctions Chinese military unit for buying Russian jets, missiles

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Russian servicemen drive S-400 missile air defense systems during the Victory Day parade, marking the 73rd anniversary of the victory over Nazi Germany in World War II, at Red Square in Moscow, on May 9, 2018. (REUTERS/Sergei Karpukhin/File Photo)
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Sukhoi Su-35 multi-role fighters of the Sokoly Rossii (Falcons of Russia) aerobatic team fly in formation during a demonstration flight at the MAKS 2017 air show in Zhukovsky, outside Moscow, Russia, on July 21, 2017. (REUTERS/Sergei Karpukhin/File Photo)
Updated 21 September 2018

US sanctions Chinese military unit for buying Russian jets, missiles

  • It was the first time a third country has been punished under the CAATSA sanctions legislation for dealing with Russia
  • US sanctions are meant to punish Russia for its aggression in Ukraine, annexation of Crimea, cyber attacks, interference in the 2016 elections, and other malign activities

WASHINGTON: The United States expanded its sanctions war against Russia to China on Thursday, announcing punitive measures against a Chinese military organization for buying Russian fighter jets and missiles.
Stepping up pressure on Moscow over its “malign activities,” the US State Department said it was placing financial sanctions on the Equipment Development Department of the Chinese Ministry of Defense, and its top administrator, for its recent purchase of Russian Sukhoi Su-35 fighter jets and S-400 surface-to-air missiles.
Officials said it was the first time a third country has been punished under the CAATSA sanctions legislation for dealing with Russia, and signaled the Trump administration’s will to risk relations with other countries in its campaign against Moscow.
They also said that the US could consider similar action against other countries taking delivery of Russian fighter jets and missiles. US ally Turkey is currently talking with Moscow about an S400 deal.
“The ultimate target of these sanctions is Russia,” a senior administration official told journalists, insisting on anonymity.
“CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country. They are aimed at imposing costs on Russia in response to its malign activities.”
CAATSA, or the Countering America’s Adversaries Through Sanctions Act, was passed in 2017 as a tool that gives the Trump administration more ways to target Russia, Iran and North Korea with economic and political sanctions.
With regard to Russia, CAATSA arises from the country’s “aggression in Ukraine, annexation of Crimea, cyber intrusions and attacks, interference in the 2016 elections, and other malign activities,” the State Department said.
The legislation allows the government to take action against those companies and individuals who have been placed on the CAATSA blacklist.
EDD and its director Li Shangfu became targets after taking delivery over the past year of the jets and missiles from Rosoboronexport, Russia’s main arms export entity already on the CAATSA blacklist for its support of the Assad regime in Syria.

More Russian entities added to blacklist
At the same time, the State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist under the CAATSA rules.
All of them — defense related firms, officers of the GRU military intelligence agency, and people associated with the St. Petersburg-based Internet Research Agency disinformation group — have been on previous US sanctions lists and 28 of them have already been indicted by Russia election meddling investigator Robert Mueller.
“We will continue to vigorously implement CAATSA and urge all countries to curtail relationships with Russia’s defense and intelligence sectors, both of which are linked to malign activities worldwide,” the State Department said.
The sanctions freeze any of EDD’s and Li’s assets in US jurisdictions.
They also restrict EDD’s access to global financial markets by blocking foreign exchange transactions under US jurisdiction or any transactions in the US financial system.
The senior official stressed that CAATSA is not going to be implemented across the board, but that the US was choosing Russia’s sale of “bigger ticket items” of “new, fancy, qualitatively significant stuff” that could have a “security impact” on the United States.
“The CAATSA was not intended to take down the economy of third party countries. It’s intended to impose appropriate pressures on Russia in response to Russian malign acts,” the official said.
The official declined to answer if the US would take similar action if Russia delivers S400 missiles to other countries such as Turkey, which is in talks to buy them.
However, he said, “You can be confident that we have spent an enormous amount of time talking about prospective purchases of things such as S-400s and Sukhois with people all around the world who may have been interested in such things and some who may still be.”
“We have made it very clear to them that these –- that systems like the S-400 are a system of key concern with potential CAATSA implications.”


Pakistan stays on FATF terrorism financing ‘gray list’

Updated 21 February 2020

Pakistan stays on FATF terrorism financing ‘gray list’

  • FATF urges Islamabad to swiftly complete full action plan by June 2020
  • Says it will ‘take action’ if Pakistan fails to comply

KARACHI: The Financial Action Task Force (FATF), a global money-laundering and terror financing watchdog, on Friday gave Pakistan until June 2020 to improve its anti-terrorism financing measures.
“The FATF strongly urges Pakistan to swiftly complete its full action plan by June 2020,” the global body said in a statement issued at a plenary meeting in Paris.
This is the second four-month extension given to Pakistan to implement the agreed action plan.
The global watchdog decided to keep Pakistan on its gray list until the country’s next progress review in June.
The FATF said it would “take action” if Pakistan failed to make progress in prosecuting and penalizing terrorism financing.
In response to the FATF decision, the Pakistani government reiterated its commitment to taking all necessary action required.
“A strategy in this regard has been formulated and is being implemented,” Pakistan’s Ministry of Finance said in a statement.
“(The) FATF reviewed progress made by Pakistan toward implementation of the Action Plan, while acknowledging the steps taken by Pakistan toward implementation of the Action Plan and welcoming its high level political commitment,” the statement read.
The ministry said that during the last reporting period, Pakistan had made “significant progress” in the implementation of the 27-point FATF plan, which was demonstrated by the completion of nine additional action items.
While noting the improvements, the FATF expressed concerns over Pakistan’s failure to complete the action plan in line with the agreed timelines and “in light of the TF (terrorism financing) risks emanating from the jurisdiction.”
“Pakistan was required to completely ban terror outfits, take measures to control cash flows, and make laws to curb money laundering,” Muzamil Aslam, a Pakistani economist, told Arab News. “Now it is political will to take measures by June 2020 to get the country out of gray list.”
Ahead of the FATF meeting, Pakistan sentenced Lashkar-e-Taiba and Jamaat-ud-Dawa leader Hafiz Saeed to five and a half years in prison on terrorism financing charges. The move was seen as a demonstration of compliance with FATF recommendations.
Pakistan managed to avoid the FATF’s balcklisting thanks to support from friendly countries, including Malaysia, Turkey and especially China.
Ahead of the FATF summit, Pakistan’s de facto finance minister, Abdul Hafeez Shaikh, said that “China and other brotherly countries have supported Pakistan throughout the process in terms of guiding the country to improve its frameworks.”
Pakistan was placed on FATF’s gray list of countries with inadequate control over curbing money laundering and terrorism financing in 2018.

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