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The State Department has determined that Russia’s defense export agency, Rosoboronexport, has engaged in activities that warrant the imposition of penalties for the transfer to or acquisition from Iran, Syria, or North Korea of goods, services, or technology controlled under multilateral control lists or otherwise having the potential to make a material contribution to the development of weapons of mass destruction or cruise or ballistic missile systems.
As a result, effective March 21 and for a period of two years, the following measures are being imposed against Rosoboronexport and any successors, sub-units, or subsidiaries thereof: (1) no U.S. government department or agency may procure or enter into any contract for the procurement of any goods, technology, or services from this entity (with certain exceptions related to Mi-17 helicopters and a sensor used to monitor and verify Russia’s Open Skies Treaty compliance); (2) no U.S. government department or agency may provide any assistance to this entity and it will not be eligible to participate in any U.S. government assistance program; (3) no U.S. government sales to this entity of any item on the U.S. Munitions List are permitted and all sales to this entity of any defense articles, defense services, or design and construction services under the Arms Export Control Act are terminated; and (4) no new individual licenses will be granted for the transfer to this entity of items the export of which is controlled under the Export Administration Act of 1979 or the Export Administration Regulations, and any existing such licenses are suspended.