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

New Russia license requirements and licensing policies to the Export Administration Regulations in response to Russia’s further invasion of Ukraine

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.
 

For more information contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Principal
T: 612-305-5533
E: jlibby@kpmg.com

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