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Russia Related Sanctions; Now D:5 U.S. Arms Embargoed Country

News & Blog

Russia and Ukrainian sanctions are being added daily. Extreme caution should be used prior to any involvement with Russian or Ukrainian parties. Among the restrictions imposed and the end of last week:

Imposes new Commerce Control List (CCL)-based license requirements for Russia.

This final rule adds new license requirements for all Export Control Classification Numbers (ECCNs) in Categories 3-9 of the CCL. Certain of these items, in 58 ECCNs with unilateral controls, were not previously controlled to Russia and include microelectronics, telecommunications items, sensors, navigation equipment, avionics, marine equipment, and aircraft components.

Applies a review policy of denial to license applications for exports, reexports to, or transfers within Russia.

Under the stringent licensing review policy being implemented, applications for the export, reexport, or transfer (in-country) of items that require a license for Russia will be reviewed, with certain limited exceptions, under a policy of denial. The categories reviewed on a case-by-case basis are applications related to safety of flight, maritime safety, humanitarian needs, government space cooperation, civil telecommunications infrastructure, government-to-government activities, and to support limited operations of partner country companies in Russia.

Expands the existing Russia ‘military end use’ and ‘military end user’ control scope to all items subject to the EAR, including EAR99 with exceptions for: (i) food and medicine designated as EAR99; and (ii) items classified as ECCN 5A992.c or 5D992.c, so long as they are not for Russian “government end users” or Russian state-owned enterprises..

Adds two new Foreign Direct Product (FDP) Rules specific to Russia and Russian ‘military end users.’

Creates a new FDP rule for all of Russia (“Russia FDP rule”).

Creates a new foreign direct product rule for Russian military end users (“Russia-MEU FDP rule”).  These restrictions apply to all items, including those designated EAR99, with certain exceptions, and impose a license requirement for footnote 3-designated Russian military end users.

Significantly restricts the use of EAR license exceptions for Russia exports, reexports, and transfers (in-country).

Russia has been reclassified as a D:5, U.S. arms embargoed country.

Again, sanctions are being added daily and you should proceed with any business with Russian or Ukrainian parties with the assumption that they are sanctioned.

To review the final rule: https://public-inspection.federalregister.gov/2022-04300.pdf


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