New US sanctions for CBW breaches block loans to Russia

The US State Department has said that, in keeping with the US government’s determination (pursuant to section 306(a) of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (‘CBW Act’), 22 U.S.C. 5604(a)), in March this year that the Russian government had ‘used chemical or biological weapons in violation of international law or lethal chemical or biological weapons against its own nationals,’ it is imposing new sanctions.

It said: ‘Section 307(b) of the CBW Act, requires a decision within three months of March 2, 2021 regarding whether Russia has met certain conditions described in the law. Additional sanctions on Russia are required if these conditions are not met. Russia has not met the CBW Act’s conditions and the Deputy Secretary of State has decided to impose additional sanctions on Russia on August 20, 2021.’

The sanctions thus imposed are that:

‘1. Multilateral Development Bank Assistance: The United States Government shall oppose, in accordance with Section 701 of the International Financial Institutions Act (22 U.S.C. 262d), the extension of any loan or financial or technical assistance to Russia by international financial institutions.

2. Bank Loans: The United States Government shall prohibit any United States bank from making any loan or providing any credit to the Government of the Russian Federation, except for loans or credits for the purpose of purchasing food or other agricultural commodities or products.’

A number of waivers apply, as can be seen in the Federal Register notice at: https://public-inspection.federalregister.gov/2021-19117.pdf