The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce today released a final rule that makes changes to the Russia and Belarus sanctions under the Export Administration Regulations (EAR).
The final rule:
- Expands the scope of the Russia/Belarus-Military End User (MEU) Foreign-Direct Product (FDP) rule, and renames it accordingly, so that the rule will also apply to transactions involving entities on the Entity List that pose a significant risk of involvement in the supply or diversion of items subject to the EAR to procurement networks for Russia’s and Belarus’s defense industry or intelligence services
- Adds controls on the export, reexport, or transfer (in-country) to or within Russia or Belarus of “software” for the operation of computer numerical control (CNC) machine tools
- Makes corrections and clarifications to certain aspects of the EAR’s Russia and Belarus sanctions
The final rule is effective on the date it is published in the Federal Register, which is scheduled to be August 27, 2024 (except for amendatory instruction 11, which is effective September 16, 2024).