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 |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal E: jlibby@kpmg.com |
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.