On June 2, 2022, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Final Rule adding 71 entities located in Russia and Belarus to the Entity List in further response to Russia’s invasion of Ukraine. These entities have been determined by the U.S. government to be acting contrary to the national security interests or foreign policy of the United States. According to BIS, these additions bring the total number of parties added to the Entity List for support of Russia’s military to 322 entities.

Sixty-six entities are being added to the Entity List on the basis of §§ 744.11(b) and 744.21 and will receive a footnote 3 designation because BIS determined they are Russian or Belarusian “military end users” that have acquired or attempted to acquire U.S.-origin items in support of Russia’s military. A footnote 3 designation subjects these entities to the Russia/Belarus foreign “direct product” (FDP) rule (see Updates of February 25, 2022 and March 4, 2022) requiring a license for the export, reexport, export from abroad or transfers (in-country) of all items subject to the Export Administration Regulations (EAR). The other five entities are being added for acquiring and attempting to acquire U.S.-origin items in support of activities contrary to U.S. national security and foreign policy interest.

Their addition to the Entity List means these entities are subject to a license requirement – currently under a “policy of denial,” with no license exceptions available – for the export, reexport, export from abroad (as described under Russia/Belarus FDP rule), or transfers (in-country) of all items subject to the EAR destined to these entities.

The rule is effective as of June 2, 2022. BIS has stated that shipments of items subject to the Final Rule that, pursuant to actual orders were en route aboard a carrier to a port of export, reexport, or transfer (in-country) on June 2, 2022, may proceed to that destination under the previous export eligibility without a license (NLR).

Photo of Scott E. Diamond** Scott E. Diamond**

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor…

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor compliance, corporate anti-boycott and antibribery compliance, national security investigations, and foreign direct investment in the United States.

Photo of Samir D. Varma Samir D. Varma

Samir advises multinational corporations on export controls, economic sanctions and customs, and counsels individuals and corporations on the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. He represents clients in enforcement actions before U.S. regulatory agencies and conducts corporate internal investigations.

Photo of Francesca M.S. Guerrero Francesca M.S. Guerrero

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some…

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some of their most challenging international transactions, involving dealings in high-risk jurisdictions or with high-risk counterparties. Francesca also counsels companies through all phases of internal investigations of potential trade and antibribery violations and represents companies across industries before related government agencies.