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).