The OverRuled: BIS Export Controls Module has been updated with the following actions:
- 05 Jun 2023 - Special Announcement
Akin is pleased to announce the launch of the Bureau of Industry and Security (BIS) export controls module on its award-winning technology solution, OverRuled, a groundbreaking legal data productivity platform. The BIS module allows users to search export controls related enforcement actions issued by BIS across several criteria in seconds, as well as search BIS guidance and FAQs, and calculate base penalty amounts. Please visit OverRuled's BIS homepage or e-mail subscriptions@overruled.com for subscription and pricing information.
- 01 Jun 2023 - Quicksilver Manufacturing, Inc., Rapid Cut LLC, US Prototype, Inc. - Finding of Violation
On June 1, 2023, BIS renewed the Temporary Denial Order (TDO) against Quicksilver Manufacturing, Inc., Rapid Cut LLC and US Prototype, Inc. ("Respondents") for a period of 180 days on the ground that issuance of the order was necessary in the public interest to prevent an imminent violation of the Regulations. Specifically, the TDO that was issued on June 7, 2022 (and renewed on December 5, 2022) was based on evidence that Respondents engaged in conduct prohibited by the Regulations by exporting or causing the export from the United States of technology controlled on national security and/or missile technology grounds to China for 3D printing without the required U.S. government authorization. Additionally, BIS’s evidence and further investigation identified additional U.S. companies that engaged in business with Respondents involving the unlicensed export of technical specifications to China related to firearm components (ECCN 0E501.a) and space-rated items (ECCN 9E515.a), both of which are controlled on national security and regional stability grounds, as well as numerous additional suspected export control-related violations between 2017 and 2022.
The OverRuled: Russia Trade Controls Resource Center has been updated with the following actions:
- 25 May 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On May 25, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Ivan Aleksandrovich Maslov, the Head of Russian Private Military Company ‘Wagner’ (“Wagner Group”) in Mali pursuant to Executive Order 14024 for having acted or purported to act for or on behalf of, directly or indirectly, the Wagner Group. OFAC’s accompanying press release notes that the “Wagner Group may be attempting to obscure its efforts to acquire military equipment for use in Ukraine, including by working through Mali and other countries where it has a foothold.” OFAC has previously designated the Wagner Group and its leader, Yevgeniy Viktorovich Progozhin, under multiple sanctions authorities.
- 22 May 2023 (UK):
The Akin Summary document has now been posted for this action.
On May 22, 2023, OFSI issued a new general license permitting a UK person who is owed funds or economic resources by a DP, under certain types of contract signed before the DP in question was designated, to receive such payment under those contracts.
- 19 May 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS added 71 entities to the Entity List, including 69 in Russia, for their alleged support of Russia's military and defense sector. BIS also added one entity in Armenia for engaging in conduct that prevented the successful accomplishment of an end-use check, and one entity in Kyrgyzstan for posing a risk of diversion of items subject to the EAR to Russia.
- 19 May 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS issued a Final Rule that expanded the scope of sanctions against Russia, Belarus, and the temporarily occupied Crimea region of Ukraine, as well as Iran, through the following controls: (i) adding more items subject to the Russian and Belarusian industry sector sanctions to align with U.S. partners and allies; (ii) expanding the scope of items that require a license when destined to Iran, Russia, or Belarus; (iii) expanding the Russia/Belarus Foreign-Direct Product (“FDP”) rule to add the temporarily occupied Crimea region of Ukraine to the scope of the rule; and (iv) refining other export controls already in place on Russia, Belarus, and Iran.
- 19 May 2023 (BIS):
The Akin Summary document has now been posted for this action.
As a follow-up to the first June 28, 2022 joint alert, BIS and the Treasury Department's Financial Crimes Enforcement Network (“FinCEN”) released a supplemental joint alert providing financial institutions information regarding new BIS export control restrictions related to Russia and ongoing U.S. government engagements designed to further prevent Russian access to military technology and goods.
- 19 May 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On May 19, 2023, OFAC issued a “determination” pursuant to Section 1(a)(ii) of E.O. 14071 prohibiting, effective June 18, 2023, the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a U.S. person, wherever located, of “architecture services or engineering services” to any person located in the Russian Federation. Concurrent with this determination, OFAC issued one new FAQ, FAQ 1128, and amended two existing FAQs, FAQs 1059 and 1061, clarifying the scope of the new prohibition, including providing definitions of the two identified categories of services.
- 19 May 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On May 19, 2023, OFAC issued a “determination” pursuant to Section 1(a)(i) of E.O. 14024 authorizing the imposition of sanctions on persons determined to operate or to have operated in the architecture, engineering, construction, manufacturing, or transportation sectors of the Russian Federation economy. Concurrent with this determination, OFAC issued two FAQs, 1126 and 1127, clarifying the scope of the new designation authority.
- 19 May 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On May 19, 2023, OFAC and the U.S. Department of State designated 240 individuals and entities and identified 83 vessels and aircraft as blocked property in a coordinated action with the G7 and other international partners aimed at further degrading the Russian Federation’s economy and ability to wage war in Ukraine. In total, OFAC and the U.S. Department of State designated 46 individuals and 194 entities pursuant to E.O. 14024. Additionally, the U.S. Department of State identified 5 vessels and 78 aircraft as blocked property. These sanctioned individuals and entities operate in a variety of industries, including energy, education, technology and electronics, and financial services, among others, and include Russian government officials and authorities in occupied parts of Ukraine. According to OFAC, these individuals and entities have touchpoints in more than 20 countries or jurisdictions worldwide.
Concurrent with these designations, OFAC issued three general licenses authorizing certain transactions with Public Joint Stock Company Polyus (“Polyus”), and certain higher education institutions: General License 66, “Authorizing the Wind Down of Transactions Involving Public Joint Stock Company Polyus”; General License 67, “Authorizing Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, Public Joint Stock Company Polyus”; and General License 68, “Authorizing the Wind Down of Transactions Involving Certain Universities and Institutes”.
- 19 May 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On May 19, 2023, OFAC issued Russia-related Directive 4 under E.O. 14024, as amended, which replaces and supersedes the prior-issued version of Directive 4 under E.O. 14024. The only substantive change made in the amended Directive 4 is to impose a new reporting requirement for U.S. persons who are in possession or control of property in which the Central Bank of the Russian Federation, Ministry of Finance of the Russian Federation, or National Wealth Fund of the Russian Federation (the “Directive 4 Entities”) has any direct or indirect interest of any nature whatsoever.
Concurrently, OFAC amended Russia-related General License 13, which authorizes certain administrative transactions prohibited by Directive 4, and reissued it as General License 13E, to extend the expiration date of such general license.
Finally, OFAC amended a number of its FAQs, namely FAQs 998-1002, 1004-1005, and 1118, to reflect the above amendments, as well as to make certain technical changes.
- 19 May 2023 (UK):
The Akin Summary document has now been posted for this action.
On May 19, 2023, the United Kingdom designated 42 individuals and 44 entities connected to the energy, metals, defence, transport and financial under The Russia (Sanctions) (EU Exit) Regulations 2019. Further, the UK has announced plans to legislate later this year to ban imports of Russian diamonds, and end all imports of Russian origin copper, aluminium and nickel, building on existing bans of Russian Iron and steel.
- 18 May 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On May 18, 2023, OFAC issued a progress report on the price cap policy for Russian-origin crude oil and petroleum products. The report focuses primarily on the success and economic impact of the price cap policy, noting that it is achieving its intended purpose by substantially reducing Russia's oil revenues while maintaining a consistent supply of crude oil and petroleum products in the global market. OFAC also states that the Russian federal government's oil revenues from January to March 2023 were over 40 percent lower than a year prior during that same time period, and that the average price of Russian Urals crude oil has been below $60 per barrel on a monthly basis since the price cap policy took effect.
Please send an email to subscriptions@overruled.com, if you would like information on how to subscribe to access additional detail about these and other sanctions- and export controls-related actions. If you are already a paid subscriber, please login to OverRuled for access to exclusive content, analysis, and historic search functionality.