Morgan Lewis US and Russia Sanctions Update
US Sectoral Sanctions - BIS (cont'd)
Export / Reexport Restrictions (cont'd)
March 2021
BIS Entity List designations - 14 Russian, German and Swiss entities (see slide 6)
BIS licensing restrictions on (and waivers re) export / re-export / transfer of national security-sensitive
items to Russia (see slides 6 and 63-64)
And broader general military end-use / user restrictions for Russia (and other countries)
2020 chronology
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Feb. 2020 final rule tightening some Country Group designations - affecting some exports and reexports
to Russia (based on missile, nuclear, and chemical & biological weapons proliferation concerns)
April 2020 publication of two final rules (effective 29 June 2020) and one proposed rule (also now issued
as final rule) targeting national-security-controlled exports and re-exports to Russia, China and
Venezuela, as follows
elimination of Civil End-Users ("CIV") license exception
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the CIV had allowed exports of items controlled for national security reasons to a few countries including Russia, if for civilian
end use, per simple confirmation by internal due diligence
this benefitted US companies in some high-tech sectors such as semiconductor, sensors, telecom, aircraft, other advanced
manufacture
but US exporters and enforcement officials have been finding it increasingly difficult to distinguish between military and
commercial sectors in destination countries including Russia
now exports previously authorized by the CIV exception will require a specific license from BIS, regardless of end use/user
(unless another license exception applies) - this presumably affects the civil-use exception recognized under the two rounds
of CBW Act sanctions (see slides 63-68)
thus US companies may need longer lead time for such sales (and need to evaluate related technology transfer
arrangements)
Morgan Lewis
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