Senator Hassan Calls for Crackdown on Russian Ships Evading U.S. Sanctions

WASHINGTON – U.S. Senator Maggie Hassan (D-NH), a senior member of the Senate Homeland Security Committee, is calling for a crackdown on Russian ships that are illegally evading U.S. sanctions.

“The United States has led our allies around the world in imposing unprecedented economic sanctions on Vladimir Putin and his cronies for Russia’s unprovoked invasion of Ukraine,” Senator Hassan wrote in a letter to Department of Homeland Security Secretary Alejandro Mayorkas and Department of Defense Secretary Lloyd Austin. “However, even as U.S. and global sanctions enforcement increases, Russian entities – including ships carrying sanctioned cargo – are still attempting to evade the consequences of these sanctions. While sanctions evasion takes many forms, I am particularly concerned about any continued shipping and sale of sanctioned goods, including energy products, which would allow the Russian Government to replenish its foreign currency reserves.”

Senator Hassan went on to point to an uptick in Russian tankers disabling transceivers, a move that helps to “obscure the origin of products and can allow both public and private actors to profit from illegal activity.”

“These transfers allow shippers to conceal the Russian origin of their goods, potentially allowing sanctioned goods to enter the U.S. market,” continued Senator Hassan. “These apparent actions by Russian ships to evade sanctions are unacceptable, and the United States must work to better understand this method of evading sanctions and take steps to prevent Russia from using these tactics to evade sanctions and prop up its economy.”

This push is the latest in Senator Hassan’s ongoing efforts to stand up to Putin. For instance, Senator Hassan previously pushed the Biden administration to sanction Russian oil and gas, and a bill passed last week will cement these sanctions into law. Senators Hassan and Bill Cassidy (R-LA) previously introduced a bipartisan resolution to designate Vladimir Putin as a war criminal for his crimes against the Ukrainian people. And Senator Hassan successfully pushed the Treasury Department to freeze Russia’s gold assets.

The full letter can be read here or below:

Dear Secretary Mayorkas and Secretary Austin,

I write to express my concern about attempts by Russian entities to evade U.S. sanctions and urge your agencies to combat these tactics. The United States has led our allies around the world in imposing unprecedented economic sanctions on Vladimir Putin and his cronies for Russia’s unprovoked invasion of Ukraine. However, even as U.S. and global sanctions enforcement increases, Russian entities – including ships carrying sanctioned cargo – are still attempting to evade the consequences of these sanctions.  The Department of Homeland Security and the Department of Defense must take action to prevent these workarounds by Russian ships and help ensure that sanctioned Russian goods are not sold in U.S. markets.

While sanctions evasion takes many forms, I am particularly concerned about any continued shipping and sale of sanctioned goods, including energy products, which would allow the Russian Government to replenish its foreign currency reserves. In May 2020, the Departments of State and Treasury, along with the U.S. Coast Guard, issued guidance to address illicit shipping and sanctions evasion practices.^[1] This guidance lists common practices that countries use to conduct illegal trade, including disabling the Automatic Identification System (AIS) required by the International Convention for the Safety of Life at Sea on commercial vessels and ship to ship (STS) transfers.^[2] Both tactics obscure the origin of products and can allow both public and private actors to profit from illegal activity.

Reports indicate that Russian tankers disabled their AIS 33 times during one week in March.^[3] This is a drastic increase from the reported average of 14 disabling events per week prior to the announcement of the ban on Russian energy imports into the United States.^[4] While there are legitimate reasons for an AIS to be turned off (e.g. to avoid maritime piracy), this uptick in “dark activities” frequently coincides with STS meetings where goods can easily be transferred to non-sanctioned vessels. These transfers allow shippers to conceal the Russian origin of their goods, potentially allowing sanctioned goods to enter the U.S. market. These apparent actions by Russian ships to evade sanctions are unacceptable, and the United States must work to better understand this method of evading sanctions and take steps to prevent Russia from using these tactics to evade sanctions and prop up its economy.

The Department of Homeland Security (DHS) is responsible for the security of our country’s borders, and plays a critical role in ensuring that illegal and sanctioned goods do not enter our country. The Department of Defense (DoD) also works to protect our national security on the high seas, which includes maritime surveillance. It is critical that Congress understand how your Departments are individually and collectively working to enforce sanctions and prevent Russian efforts to undermine them.

The Subcommittee on Emerging Threats and Spending Oversight is tasked with identifying and examining emerging national security and economic threats and improving coordination between federal departments and agencies. As Chair of this subcommittee, I am seeking information and answers about these apparent Russian tactics and what additional actions your Departments can take to stop them. Please provide answers to the following questions:

1. How do your Departments assess the threat of Russian sanctions evasion utilizing “dark activities” tactics?
2. What assets, resources, or systems do your agencies employ to track sanctioned ships and goods to prevent their entry or sale into the United States?
3. What plans, procedures, or policies have your agencies taken to coordinate and collaborate against this emerging threat?
4.  What additional steps will you take to address this emerging threat?

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