FOR IMMEDIATE RELEASE |
Commerce Rule Applies Powerful Restrictions Directly on Entities Seeking to Supply Russia’s Military Since Start of Invasion of Ukraine
Addition to Commerce Entity List Severely Restricts Access to U.S. Technologies and Items
WASHINGTON, D.C. – The U.S. Commerce Department, through its Bureau of Industry and
Security (BIS), has issued a new rule adding a total of 36 entities in nine countries to the Entity
List, including six specifically for their continued support of Russia’s military efforts since
imposition of export controls in response to Russia’s invasion of Ukraine. The six entities are
subject to severe restrictions on access to U.S. technologies and items for having contracted to
continue to supply Russian military end users since February 24, 2022, when the current
restrictions were put in place. The Department also publicly identifies two Chinese parties that
have been on the Entity List since 2018 as having supported, and continued to support, Russia’s
military since the imposition of new controls.
“The sweeping export controls put in place by the United States and our allies and partners are
restricting the Russian military’s ability to repair, replace, and resupply and will continue to bite
harder the longer Putin persists,” said Under Secretary of Commerce for Industry and
Security Alan Estevez. “Today’s action sends a powerful message to entities and individuals
across the globe that if they seek to support Russia, the United States will cut them off as well.”
“We worked hard with our allies and partners to structure our export controls for maximum
impact on Russia’s strategic sectors. Given the breadth and cooperation of our multilateral
coalition, we are well positioned not only to impose restrictions but also to track and cut off
private firms that may seek to support Russia,” said Assistant Secretary of Commerce for
Export Administration Thea D. Rozman Kendler. “We will not hesitate to act, regardless of
where a party is located, if they are violating U.S. law.”
“The United States and our allies and partners will continue to demonstrate our shared resolve on
behalf of Ukraine by continuing to deny Russia’s military the technologies and items it needs to
perpetrate its atrocities--from whatever source attempts to supply them, wherever they are
located,” said Assistant Secretary of Commerce for Export Enforcement Matthew S.
Axelrod. “Our rules are clear, and we will not hesitate to take action when parties backfill in
violation of them
The Department of Commerce has made clear to industries and governments around the world
that it will aggressively enforce enhanced export controls on Russia to prevent evasion, including
by using the Entity List. Today’s action is an unequivocal message to parties wherever located
that the United States and its allies and partners will not hesitate to act swiftly, in accordance
with our laws and policies, to continue to ensure that Russia remains marginalized from the
global economy and its capacity to acquire sensitive technologies and other material support for
its war effort is severely degraded.
The backfill actions of the six entities which are based in China, Lithuania, Russia, the United
Kingdom, Uzbekistan, and Vietnam, along with two additional entities added to the Entity List in
August 2018 – China Electronics Technology Group Corporation 13th Research Institute (CETC
13) and its subordinate institution Micro Electronic Technology in China – involved previously
supplying items to Russian entities of concern and continuing to contract to supply Russian
parties after Russia’s invasion of Ukraine, notwithstanding the collective restrictions put in place
by the United States and 37 of our coalition partners.
Additional entities are added for a variety of other activities contrary to U.S. national security
and foreign policy interests. Two Russia-based entities are being listed on the basis of their
attempts to procure items, including U.S.-origin items, for acting as agents, fronts or shell
companies for OOO Intertech Instruments, which was added to the Entity List under the
destination of Russia on March 4, 2021 (86 FR 12529). Twelve China-based entities are added
for engaging in deceptive practices to supply or attempt to supply Iran with U.S. origin
electronics that would ultimately provide support to Iran’s military. Additional entities based in
China, Russia, the United Arab Emirates, and Pakistan are added as well.
The rule also makes several other revisions and modifications to various existing entries on the
Entity List including clarifying the ability of certain entities instrumental to the operation of the
International Space Station to receive certain items following U.S. government approval of
license applications.
The rule takes effect upon posting for public inspection on June 28, 2022, on the website of the
Federal Register. Text of today’s rule is available online here: https://go.usa.gov/xJ6dZ
The parties were added to the list upon a determination by the interagency End-User Review
Committee (ERC), made up of the Departments of Commerce (Chair), Defense, State, Energy,
and where appropriate, Treasury, based on specific and articulable facts that the entities have
been involved are involved, or pose a significant risk of being or becoming involved in activities
contrary to the national security or foreign policy interests of the United States.
The ERC makes all decisions regarding additions to, removals from, or other modifications to
the Entity List. The ERC makes all decisions to add an entry to the Entity List by majority vote
and makes all decisions to remove or modify an entry by unanimous vote.
These BIS actions were taken under the authority of the Export Control Reform Act of 2018 and
its implementing regulations, the Export Administration Regulations (EAR).
Additional information on BIS’s actions in response to Russia’s invasion of Ukraine is available
here.
For more information, visit www.bis.doc.gov