Trade Alert

Commerce Tightens U.S. Export Controls on Russia and Belarus

By In USA Trade Alerts On 22nd September 2022

On September 15, 2022, the Bureau of Industry and Security (BIS) issued a rule applying further restrictions on Russia and Belarus. The action further restricts access to technologies and items that may be used to support Russian and Belarusian military aggression against Ukraine. 

Specifically, the rule:

  • Expands the scope of the Russian industry sector sanctions to add items potentially useful for Russia’s chemical and biological weapons production capabilities and items needed for advanced production and development capabilities that enable advanced manufacturing across a number of industries.
  • Imposes controls on quantum computing-related hardware, software, and technology, which complement an action taken by the Department of the Treasury to prohibit quantum computing services to Russia, as well as sanctions imposed by the Department of State on Russian companies supporting its quantum computing capabilities.
  • Adds Belarus to the scope of industry sector sanctions that currently apply only to Russia.
  • Expands the ‘military end user’ and ‘military-intelligence end user’ controls. Specifically, this applies the Russian/Belarusian-Military End User Foreign Direct Product (FDP) rule to entities located outside of Russia and Belarus that were previously added to the Entity List for having continued to supply Russian entities on the Entity List or are under sanctions since Russia’s further invasion of Ukraine. Labeling these six entities as Russian ‘military end users’ and having the Russia/Belarus-Military End User FDP rule apply to them will degrade Russia’s war efforts in Ukraine, as these entities produce items needed by the Russian and Belarusian military and industrial sectors.
  • Refines existing controls on Russia and Belarus to more closely align with requirements implemented by allies by adding additional dollar value exclusion thresholds for ‘luxury goods.’
  • Makes twelve additional corrections and clarifications to existing controls on Russia and Belarus and make them more effective.

For additional information, here is a link to the Federal Register Notice: Implementation of Additional Sanctions Against Russia and Belarus Under the Export Administration Regulations (EAR) and Refinements to Existing Controls

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