The U.S. has announced another set of “expansive” Russia sanctions. The designations include more than 80 people and entities in Russia or Ukraine that either offer financial support to the Kremlin or help the government “promulgate disinformation and influence perceptions.”
The State Department is also sanctioning 22 Russian defense firms, including entities that develop and produce fighter aircraft, infantry fighting vehicles, electronic warfare systems, missiles, and unmanned aerial vehicles for Russia’s military.
The Bureau of Industry and Security (BIS) announced new export controls on Russia’s oil refinery sector and added 91 entities to the Entity List for supporting Russian security or military sectors. The new restrictions took effect on March 3 and build on an extensive set of U.S. sanctions announced within the last week in response to the invasion of Ukraine, meant to cut Russia off from importing goods that help support and fund its military.
“This final rule amends part 746 of the EAR (Embargoes and Other Special Controls) to expand the scope of the Russian industry sector sanctions by adding a new general prohibition that will apply to additional Harmonized Tariff Schedule (HTS)-6 codes and Schedule B numbers for all exports, reexports, and transfers (in-country) to or within Russia,” BIS said in the final rule which is expected to be published in the Federal Register, on March 8.
BIS explained, “For the changes being made in this final rule, shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of this regulatory action that were enroute aboard a carrier to a port of export, reexport, or transfer (in-country), on [March 3], pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR).”
If you have questions on how this may impact your business, or need assistance reviewing your transactions, reach out to Mohawk Global Trade Advisors.
