The U.S. announced additional sanctions and export controls June 12 in a continuing effort to degrade Russia’s ability to prosecute its war in Ukraine.
The Treasury Department has imposed sanctions on more than 300 companies in China, Singapore, the United Arab Emirates, Kyrgyzstan, Türkiye, and Moldova, including producers, exporters, and importers. These entities are being targeted for supplying critical dual-use goods in support of Russia’s war effort; engaging in the development of Russia’s future energy, metals, and mining production and export capacity; and evading or circumventing existing sanctions.
As a result of these sanctions, all property and interests in property of the designated persons that are in the U.S. or in the possession or control of U.S. persons are blocked and must be reported to Treasury’s Office of Foreign Assets Control. All entities and individuals that have ownership, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the U.S. that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt.
Separately, the Commerce Department’s Bureau of Industry and Security has issued a final rule that, effective June 12, imposes the following export controls and related actions against Russia.
- adds controls on more than 500 additional six-digit HTS codes, as well as additional riot control agents, for export, reexport, or transfer (in-country) to Russia and Belarus
- cracks down on diversion through shell companies by creating a new regulatory framework for listing addresses on the Entity List that present a high risk of involvement in unlawful diversion
- adds five entities and eight addresses to the Entity List
- imposes additional restrictions on the export, reexport, or transfer (in-country) of certain types of software, to include enterprise management software and design software, to Russia and Belarus, even when not specifically identified on the Commerce Control List
- eliminates additional items, such as lower-level graphics processing units, from eligibility for export to Russia or Belarus pursuant to license exception CCD (consumer communications devices)
- imposes temporary denial orders against two Russian procurement networks facilitating exports of aircraft parts to Russia through third countries, thus suspending their rights to export items subject to the Export Administration Regulations from the U.S. and to receive or participate in exports from the U.S. or reexports of items subject to the EAR
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