U.S. additional sanctions against Russia under the Export Administration Regulations

The Bureau of Industry and Security (BIS) of the U.S. Commerce Department this afternoon released for publication in the Federal Register a final rule that adds new Russia license requirements and licensing policies to the Export Administration Regulations (EAR) in response to Russia’s further invasion of Ukraine.

With this final rule [PDF 454 KB] (86 pages), the new measures:

• Impose new Commerce Control List (CCL)-based license requirements for Russia
• Add two new foreign “direct product” (FDP) rules specific to Russia and Russian military end-users
• Specify a license review policy of denial applicable to all of the license requirements being added in this rule, with certain limited exceptions
• Significantly restrict the use of EAR license exceptions
• Expand the existing Russia military end-use and military end-user control scope to all items “subject to the EAR” other than food and medicine (unless for Russian government end-users and Russian state-owned enterprises)
• Transfer 45 Russian entities from the Military End-User (MEU) List to the Entity List with an expanded license requirement for all items subject to the EAR (including foreign-produced items subject to the Russia-MEU FDP rules)
• Add two new Russia entities and revise two Russia entities to the Entity List

The final rule imposes comprehensive export, reexport and transfer (in-country) restrictions for the Donetsk and Luhansk regions of Ukraine and makes conforming revisions to export, reexport transfer (in-country) restrictions for Crimea Region of Ukraine provisions.

The final rule is effective February 24, 2022.
 

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