U.S. implementation of additional sanctions against Russia and Belarus under EAR, refinements to existing controls

Final rule in response to Russia’s ongoing aggression against Ukraine

Final rule in response to Russia’s ongoing aggression against Ukraine

The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today released for publication in the Federal Register a final rule in response to Russia’s ongoing aggression against Ukraine.

The final rule [PDF 476 KB] (99 pages) expands the existing sanctions against Russia and Belarus under the Export Administration Regulations (EAR) by imposing new export controls, including expanding the scope of the Russian industry sector sanctions to add lower-level items potentially useful for Russia’s chemical and biological weapons production capabilities and items needed for advanced production and development capabilities to enable advanced manufacturing across a number of industries.

The final rule also:

  • Adds Belarus to the scope of industry sector sanctions that previously applied solely to Russia
  • Expands the “military end-user” and “military-intelligence end-user” controls and applies the Russian/Belarusian-military end-user foreign direct product (FDP) rule to 10 existing entries for six existing entities that have continued to supply Russian entities on the entity list or are under sanction since Russia’s further invasion of Ukraine
  • Clarifies requirements related to Burma, Cambodia, China, and Venezuela
  • Refines existing controls on Russia and Belarus by adding additional dollar value exclusion thresholds for “luxury goods”
  • Makes 12 corrections and clarifications to existing controls on Russia and Belarus

The rule is effective today, September 15, 2022.

For more information on sanctions and other responses to Russia’s war on Ukraine, visit KPMG’s dedicated website.

Contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
E: ivaysfeld@kpmg.com

Amie Ahanchian
E: aahanchian@kpmg.com

Christopher Young
E: christopheryoung@kpmg.com

Gisele Belotto
E: gbelotto@kpmg.com

George Zaharatos
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
E: jlibby@kpmg.com


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