2020 NDAA Includes Sanction-Related Measures Against Venezuela, Syria, Turkey, North Korea
Along with sanctions related to Russia’s Nord Stream 2 pipeline (see 1912190075), the 2020 National Defense Authorization Act includes a prohibition on Venezuela-related procurement actions and additional measures against Turkey, North Korea and Syria, according to a Dec. 27 post from Crowell & Moring.
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Although the NDAA does not contain measures that directly sanction Venezuela, it contains a “broad procurement prohibition” that exposes “an entire corporate family” to a Defense Department procurement restriction “if any member of that corporate family has unlicensed Venezuelan business,” the post said. The provisions block the Defense Department from entering into contracts with any person who does business with the Venezuelan government except if a valid Treasury Department license is used, the post said. In addition, both the Defense and State departments can use a “discretionary exception” if the contract is related to humanitarian aid to Venezuela.
The NDAA also contains a “limitation” on Turkey’s ability to participate in the F-35 program, a multinational program that would have provided the country with the F-35 aircrafts. The U.S. said earlier this year that it would not sell the fighter jets to Turkey because the country purchased S-400 missile parts from Russia (see 1907170024).
Also included in the NDAA is the Otto Warmbier North Korea Nuclear Sanctions and Enforcement Act of 2019, which calls for the imposition of sanctions against any foreign financial institution that knowingly provides financial services to parties sanctioned under U.S. or United Nations Security Council sanctions regimes against North Korea, the post said. It also blocks non-U.S. entities that are owned by U.S. banks from doing business with North Korea, and gives the president additional authorities to sanction parties involved in exports to and imports from North Korea.
Another provision will sanction non-U.S. people involved with the Syrian government, including in military capacities or helping the government's maintenance of gas and petroleum production. The NDAA will also create a sanctions program to target non-U.S. people identified as foreign opioid traffickers, which “follows a process similar” to the one used by the Treasury Department under the Foreign Narcotics Kingpin Designation Act