U.S. Commerce Dept. Expands Export Restrictions on Russia

As part of a series of sanctions announced April 29 by the United States, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced that it is expanding its export restrictions on items subject to the Export Administration Regulations (EAR) in response to Russia’s continued actions in southern and eastern Ukraine.

The Department of Commerce has also added 13 companies to the Entity List.

Effective immediately, BIS will deny pending applications for licenses to export or re-export any high technology item subject to the EAR to Russia or occupied Crimea that contribute to Russia’s military capabilities. In addition, the department is taking actions to revoke any existing export licenses that meet these conditions.

All other pending applications and existing licenses will receive a case-by-case evaluation to determine their contribution to Russia’s military capabilities.

In addition, 13 companies have been placed on the Entity List based on a determination they are involved, or pose a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States.

Placement on the Entity List imposes a license requirement for the export, re-export or other foreign transfer of items subject to the EAR to the designated companies, with a presumption of denial.

The companies added to the Entity List are: Stroytransgaz Holding, located in Cyprus; Volga Group, located in Luxembourg and Russia; and Aquanika, Avia Group LLC, Avia Group Nord LLC, CJSC Zest, Sakhatrans LLC, Stroygazmontazh, Stroytransgaz Group, Stroytransgaz LLC, Stroytransgaz-M LLC, Stroytransgaz OJSC, and Transoil, all located in Russia.

The United States will continue to adjust its export-licensing policies toward Russia as warranted by Russia’s actions in Ukraine, the Commerce Department said in an April 28 press release.

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