U.S. Department of Commerce, in response to the Russian Federation’s (Russia’s) further invasion of Ukraine, added new Russia license requirements and licensing policies to the Export Administration Regulations (EAR) to protect U.S. national security and foreign policy interests. These new Russia measures:
- Impose new Commerce Control List (CCL)-based license requirements for Russia;
- Add two new foreign “direct product” rules (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 designated EAR99, or ECCN 5A992.c and 5D992.c unless for Russian “government end users” and Russian state-owned enterprises (SoEs);
- Transfer forty-five Russian entities from the Military End-User (MEU) List to the Entity List with an expanded license requirement of all items subject to the EAR; and
- Add two new Russia entities and revise two Russia entities to the Entity List.
- Lastly, this rule imposes comprehensive export, reexport and transfer (in-country) restrictions for the so-called Donetsk People’s Republic (DNR) and Luhansk People’s Republics (LNR) regions of Ukraine (“Covered Regions of Ukraine”) and makes conforming revisions to export, reexport transfer (in-country) restrictions for Crimea Region of Ukraine provisions.
BIS also has determined that certain countries are committed to implementing substantially similar
export controls as part of their domestic sanctions against Russia. These countries are identified
in Supplement No. 3 to part 746 (Russia Exclusions List). They are excluded from the
requirements of the Russia and Russia-MEU FDP rules and the de minimis provisions under
Supplement No. 2 to part 734 with respect to ECCNs that either specify only Anti-terrorism (AT)
in the reason for controls paragraph of the ECCN or are classified under ECCN 9A991. This
exclusion may be full or partial, as noted in the Scope column of the Russia Exclusions List and
may only apply when the criteria specified in § 746.8(a)(4) or (5) are met. In addition, the
Russia Exclusions List includes certain countries that have committed to implementing
substantially similar controls under their domestic laws but have not yet implemented them.
More information on the implementation of Sanctions Against Russia Under the Export Administration Regulations can be found here.