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The U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced an expansion of existing export controls and imposition of additional sanctions against the Russian Federation (Russia) and Belarus in response to continued aggression toward Ukraine. Effective September 15, 2022, these actions are intended to "clarify and enhance the effectiveness of U.S. controls and to better align [U.S.] controls on both Russia and Belarus with those implemented by U.S. allies" and "reflect the U.S. Government's position that Russia's invasion of Ukraine, and Belarus's complicity in the invasion, flagrantly violated international law, is contrary to U.S. national security and foreign policy interests, and undermines global order, peace, and security."1Among other changes, thisFinal Ruleadds controls on the export of certain EAR99 items to Russia and Belarus, expands the foreign direct product rule to also include certain EAR99 items, and expands controls on exports to military end-users and/or for military end-uses.

Most notably, the Final Rule, "Implementation of Additional Sanctions Against Russia and Belarus Under the Export Administration Regulations (EAR) and Refinements to Existing Controls," expands the scope of Russian industry sector sanctions that previously controlled the export of items used in oil and gas production to now include the export of certain items that are viewed as potentially useful for Russia's chemical and biological weapons capabilities and Russia's defense-industrial base. These items are listed inSupplement Number 6 to Part 746, and include certain chemicals, biologics, fentanyl and its precursors, and nucleic acid sequencers, as well as quantum computing and advanced manufacturing items. Additionally, 57 new entries of industrial machinery, equipment, and related parts or accessories that could support Russia's defense-industrial base were added toSupplement Number 4 to Part 746. Supplement Number 4 includes, among a variety of other items, certain cameras and industrial robots. Due to concerns about the diversion of items from Belarus to Russia, the Final Rule adds Belarus to the industry sector sanctions that previously applied solely to Russia under 15 CFR 746.5.

Among other changes, the Final Rule also:

Finally, in addition to the new export controls implemented by BIS, OFAC expanded the prohibition onaccounting, trust and corporate formation services, and management consulting sectorsto any person located in the Russian Federation to include aprohibition on providing quantum computing servicesand alsoimposed restrictionson 22 additional officials and two entities in Russia, adding them to the ever-growing list of sanctioned parties in Russia.

We will continue to closely monitor the evolving regulations and welcome you to reach out with any questions. Please feel free to contactJosephine Aiello LeBeau,Mike Casey,Anne Seymour,Jahna Hartwig,Kara Millard, or another member of Wilson Sonsini'snational securitypractice for more information.

[1] Implementation of Additional Sanctions Against Russia and Belarus Under the Export Administration Regulations (EAR) and Refinements to Existing Controls, 87 Fed. Reg. 57,068 (Sept. 16, 2022) (to be codified at 15 C.F.R. pts. 732, 734, 736, 740, 744, 746, and 762).

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New Russia Sanctions Imposed as Ukraine War Continues: Expansion of Controls on EAR99 Items and Military End-Uses - Wilson Sonsini Goodrich &...