Sanctions and Export Controls Update

Monthly Roundup – February 2026

📅 March 3, 2026

Welcome to this month’s Sanctions and Export Controls Update, highlighting IFI’s take on key developments from February 2026.

The United States and other nations expanded sanctions on Iran in the lead up to the U.S.-Israeli attacks at the end of February, and the UK announced its largest sanctions package against Russia since early 2022 on the fourth anniversary of Russia’s war in Ukraine. Meanwhile, UK regulators published multiple significant guidance documents associated with sanctions compliance and enforcement, OFAC fined a leading sports academy boarding school, and BIS issued its second-largest penalty in history.

Iran

The U.S. imposed two tranches of sanctions targeting Iran’s weapons procurement networks and shadow fleet in the lead up to Operation Epic Fury, and the EU imposed sanctions against Iran’s Islamic Revolutionary Guard Corps (IRGC) after designating it a terrorist organization. The UK, Canada, and Australia also expanded their sanctions on Iran, and India seized three Iranian oil tankers.

Treasury sanctioned more than 30 individuals, entities, and vessels involved in Iran’s shadow fleet and networks supplying ballistic missile and unmanned aerial vehicle programs—including procurement networks in Iran, Türkiye, and the UAE. In addition, State identified 14 shadow fleet vessels as blocked property and sanctioned 15 entities and two individuals involved in the sale of Iranian-origin crude oil, petroleum, and petrochemical products in violation of U.S. sanctions.
The UK announced sanctions against 10 individuals and one organization over human rights violations in Iran, targeting figures linked to violent crackdowns on peaceful protests, and Australia imposed sanctions on 20 individuals and three entities, including senior officials and bodies linked to the Islamic Revolutionary Guard Corps, for their role in suppressing protests and threatening lives inside and outside Iran. Canada also imposed sanctions on seven senior Iranian officials accused of supporting activities that undermine international peace and security.
India seized three U.S. sanctioned oil tankers linked to Iran—Stellar Ruby, Asphalt Star, and Al Jafzia—about 100 nautical miles west of Mumbai after detecting unspecified suspicious activities, and the S. Navy intercepted and detained the oil tanker Veronica III in the Indian Ocean, alleging violations of sanctions targeting Iran’s shadow fleet.

Russia

In recognition of the fourth anniversary of Russia’s war in Ukraine, the UK announced its largest sanctions package against Russia since early 2022, and Canada, Australia, and New Zealand each lowered the oil price cap and sanctioned over 100 new targets. Meanwhile, the EU failed to reach consensus to adopt its 20^th sanctions package on Russia because of a veto by Hungary over a dispute regarding interrupted Russian oil deliveries.

The UK announced what it called a “landmark sanctions package” of nearly 300 new targets including oil pipeline company PJSC Transneft, 175 companies tied to the 2Rivers oil network, 48 oil tankers, nine Russian banks, six targets tied to liquefied natural gas exports, and entities involved in components used in drones and other weapons.
Canada imposed sanctions on 21 individuals, 53 entities, and 100 vessels from Russia’s shadow fleet; Australia designated 4 individuals, 115 entities, and 61 vessels as sanctions targets; and New Zealand implemented sanctions against 100 shadow fleet vessels. Each country also lowered its price cap for Russian crude oil from US$47.60 to US$44.10 per barrel, aligning them with Europe’s adjustment last month.
The EU’s 20^th sanctions package, which was delayed by Hungary’s veto, is expected to include a full maritime services ban for Russian crude oil, new import bans on metals, chemicals, and critical minerals, 43 additional listings of shadow fleet vessels, 20 Russian regional banks, and several banks in third countries involved in facilitating illegal trade in sanctioned goods, among other measures.

Other Significant Developements

The UK’s Office of Financial Sanctions Implementation (OFSI) issued updated guidance on its enforcement framework, published lessons learned from a recent bank penalty, and is seeking industry input that could lead to revisions to its ownership and control rules. Meanwhile, OFAC issued multiple new general licenses and FAQs associated with Venezuela’s oil industry that were summarized in a State Department press release, BIS imposed its second largest fine—$252M for semiconductor-related exports to China—and six individuals were sentenced to prison for export control violations in four different courts in the U.S. and UK.

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