Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR)

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, 740, 742, 744,

746, and 772

[Docket No. 220215–0048]

RIN 0694–AI71

Implementation of Sanctions Against

Russia Under the Export

Administration Regulations (EAR)

AGENCY

: Bureau of Industry and

Security, Department of Commerce.

ACTION

: Final rule.

SUMMARY

: In response to the Russian

Federation’s (Russia’s) further invasion

of Ukraine, with this final rule, the

Department of Commerce is adding new

Russia license requirements and

licensing policies to the Export

Administration Regulations (EAR) to

protect U.S. national security and

foreign policy interests. These new

Russia measures: Impose new

Commerce Control List (CCL)-based

license requirements for Russia; add two

new foreign ‘‘direct product’’ rules (FDP

rules) specific to Russia and Russian

‘military end users;’ specify a license

review policy of denial applicable to all

of the license requirements being added

in this rule, with certain limited

exceptions; significantly restrict the use

of EAR license exceptions; expand the

existing Russia ‘military end use’ and

‘military end user’ control scope to all

items ‘‘subject to the EAR’’ other than

food and medicine designated EAR99,

or ECCN 5A992.c and 5D992.c unless

for Russian ‘‘government end users’’ and

Russian state-owned enterprises (SoEs);

transfer forty-five Russian entities from

the Military End-User (MEU) List to the

Entity List with an expanded license

requirement of all items subject to the

EAR (including foreign-produced items

subject to the Russia-MEU FDP rules);

and add two new Russia entities and

revise two Russia entities to the Entity

List. Lastly, this rule imposes

comprehensive export, reexport and

transfer (in-country) restrictions for the

so-called Donetsk People’s Republic

(DNR) and Luhansk People’s Republics

(LNR) regions of Ukraine (‘‘Covered

Regions of Ukraine’’) and makes

conforming revisions to export, reexport

transfer (in-country) restrictions for

Crimea Region of Ukraine provisions.

DATES

: This rule is effective February

24, 2022.

FOR FURTHER INFORMATION CONTACT

: For

questions on the Entity List and MEU

List, contact the Chair, End-User Review

Committee, Office of the Assistant

Secretary, Export Administration,

Bureau of Industry and Security,

Department of Commerce, Phone: (202)

482–5991, Fax: (202) 482–3911, Email:

ERC@bis.doc.gov.

For other questions on this final rule,

contact Eileen Albanese, Director, Office

of National Security and Technology

Transfer Controls, Bureau of Industry

and Security, Department of Commerce,

Phone: (202) 482–0092, Fax: (202) 482–

3355, Email: rpd2@bis.doc.gov. For

emails, include ‘‘Russia’’ in the subject

line.

SUPPLEMENTARY INFORMATION

:

I. Background

In response to the Russian

Federation’s (Russia’s) further invasion

of Ukraine, the Bureau of Industry and

Security (BIS) imposes extensive

sanctions on Russia by amending the

Export Administration Regulations (15

CFR parts 730–774) (EAR). Russia’s

invasion of Ukraine flagrantly violates

international law, is contrary to U.S.

national security and foreign policy

interests, and undermines global order,

peace, and security, and therefore

necessitates these stringent and

expansive sanctions. The Commerce

Department’s sanctions are one aspect of

the broad U.S. Government response to

Russia’s unprovoked aggression and are

being imposed in coordination with

allies and partners.

In response to Russia’s 2014 invasion

of Ukraine and occupation of the

Crimean region, the U.S. Government,

in coordination with its partners and

allies, imposed restrictions on Russia,

including asset-blocking measures,

licensing requirements applicable to

exports, reexports, and transfers (in-

country) of items subject to the EAR

destined for certain Russian entities,

and special controls on items subject to

the EAR intended for use in specified

Russian industry sectors. Leading up to

Russia’s further invasion of Ukraine, the

U.S. Government announced that

should Russia encroach further on

Ukraine’s territory, it would impose

additional, comprehensive sanctions

with significant consequences.

The export control measures

implemented in this final rule protect

U.S. national security and foreign policy

interests by restricting Russia’s access to

items that it needs to project power and

fulfill its strategic ambitions. These

items include sophisticated

technologies designed and produced in

the United States, as well as certain

foreign-produced items that contain or

are based on U.S.-origin technology

subject to the EAR or other technology

that is subject to the EAR that are

essential inputs to Russia’s key

technology and other sectors. BIS is

primarily targeting the Russian defense,

aerospace, and maritime sectors with

these new export controls. These export

controls include controls on the export

from abroad of certain foreign-produced

items that are subject to the EAR. Given

the global dominance of U.S.-origin

software, technology, and equipment

(including tooling), these new controls,

implemented in parallel with similarly

stringent measures by partner and allied

countries, will cover a broad scope of

items that Russia seeks to advance its

strategic ambitions and consequently

impair the country’s key industrial

sectors.

II. Overview of New Controls

BIS is implementing a new license

requirement for Russia on items subject

to the EAR and classified under any

Export Control Classification Number

(ECCN) in Categories 3 through 9 of the

Commerce Control List, Supp. No. 1 to

part 774 of the EAR (CCL). The new

license requirement is added under new

§ 746.8(a)(1) (Russia sanctions) in part

746 of the EAR (Embargoes and Other

Special Controls). License exceptions

described in § 746.8(c)(1)–(7) may be

used to overcome the license

requirement. When a license application

is required, applications for such items

will be subject to a policy of denial.

However, to minimize unintended

consequences, a case-by-case review

policy applies to applications to export,

reexport, or transfer (in-country) items

that ensure safety of flight, maritime

safety, meet humanitarian needs, enable

government space cooperation, and

allow transactions for items destined to

specified Western subsidiaries and joint

ventures, support civil

telecommunications infrastructure in

certain countries, and government-to-

government activities. The case-by-case

review policy will be used to determine

whether a transaction that meets the

criteria above would benefit the Russian

government or defense sector.

Additionally, BIS is establishing two

new foreign ‘‘direct product’’ rules (FDP

rules) in § 734.9 of the EAR. The first

relates to the entire country of Russia,

as described in new § 734.9(f) (the

‘‘Russia FDP rule’’). Foreign-produced

items subject to the EAR under the

Russia FDP rule will be subject to the

license requirement described in new

§ 746.8(a)(2) but will be eligible for

certain license exceptions described in

§ 746.8(c)(1)–(7). When a license

application is required, such

applications will be subject to a general

policy of denial but will be subject to

case-by-case review for certain

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circumstances described further in

§ 746.8(b).

The second new FDP rule targets

Russian ‘military end users,’ as

described in new § 734.9(g) (the

‘‘Russia-MEU FDP rule’’). Foreign-

produced items subject to the EAR

under the Russia-MEU FDP rule will be

subject to the license requirement

described in new § 746.8(a)(3). No

license exceptions are available to

overcome this license requirement,

except as specified in the Entity List

entry for a Footnote 3 entity on the

Entity List in supplement no. 4 to part

744 of the EAR, and such items will be

subject to a policy of denial for all

license applications, as described in

§ 746.8(b).

BIS has determined that certain

countries are committed to

implementing substantially similar

export controls as part of their domestic

sanctions against Russia. These

countries are identified in Supplement

No. 3 to part 746 (Russia Exclusions

List). They are excluded from the

requirements of the Russia and Russia-

MEU FDP rules and the de minimis

provisions under Supplement No. 2 to

part 734 with respect to ECCNs that

either specify only Anti-terrorism (AT)

in the reason for controls paragraph of

the ECCN or are classified under ECCN

9A991. This exclusion may be full or

partial, as noted in the Scope column of

the Russia Exclusions List and may only

apply when the criteria specified in

§ 746.8(a)(4) or (5) are met. In addition,

the Russia Exclusions List includes

certain countries that have committed to

implementing substantially similar

controls under their domestic laws but

have not yet implemented them.

BIS also is expanding the scope of the

existing ‘military end use’ and ‘military

end user’ control under § 744.21 of the

EAR for Russia to apply to all items

‘‘subject to the EAR’’ except food and

medicine designated EAR99, or ECCN

5A992.c and 5D992.c unless for Russian

‘‘government end users’’ and Russian

state-owned enterprises (SoEs). At the

same time, this rule removes forty-five

Russian entities from the Military End-

User (MEU) List in Supplement No. 7 to

part 744 and adds them to the Entity

List with an expanded license

requirement for the export, reexport,

and transfer (in-country) of all items

‘‘subject to the EAR,’’ including those

items subject to the Russia-MEU FDP

rule for ‘military end users’ in Russia.

Finally, BIS adds two new Russian

entities to the Entity List under this

final rule and revises two existing

entries for Russian entities on the Entity

List.

III. Amendments to the Export

Administration Regulations (EAR)

A. Implementation of New Sanctions

Against Russia

Addition of Expansive License

Requirements, Restrictive License

Review Policies, and Restrictions on

License Exception Eligibility for Russia

This final rule adds § 746.8 to impose

new sanctions against Russia in part 746

of the EAR (Embargoes and Other

Special Controls). Under paragraph (a)

(License Requirements) of this new

section, this final rule imposes three

distinct types of license requirements.

The first requirement, set forth in

paragraph (a)(1) is specific to the export,

reexport and transfer (in-country) of

items in categories 3, 4, 5, 6, 7, 8 or 9

of the CCL. The second and third

requirements, set forth in paragraphs

(a)(2) and (3) are specific to reexport,

export from abroad, and transfer (in-

country) of foreign-produced ‘‘direct

products’’ subject to the EAR under the

Russia or Russia-MEU FDP rules.

1. Section 746.8(a)(1) License

Requirement

New § 746.8(a)(1) (Items classified in

an ECCN in CCL Categories 3 through 9)

is supplemental to the license

requirements found elsewhere in the

EAR. Under this paragraph, a license is

required for the export, reexport, or

transfer (in-country) to or within Russia

of any item subject to the EAR and

specified in an ECCN in Categories 3, 4,

5, 6, 7, 8, or 9 of the CCL, excluding

deemed exports and deemed reexports.

In implementing these controls, BIS

imposes broad transfer (in-country)

requirements on an entire country,

reflecting the significance of the U.S.

national security and foreign policy

concerns, resulting from the Russian

further invasion of Ukraine. These

license requirements are intended to

further restrict items to the Russian

military and defense sector.

Additionally, paragraph (a)(1) extends

EAR license requirements to many items

that did not previously require a license

to Russia on the basis of their CCL

classification alone, such as the parts

and components used in civil aircraft

controlled under ECCN 9A991.d.

Although these items generally are

controlled at a lower level under the

EAR, they are still necessary for the

functioning of aircraft, vessels and

electronic items. As such, restrictions

on these items can significantly limit

Russia’s ability to obtain items it is not

able to produce. In addition, with these

new license requirements, additional

items will be treated as controlled U.S.-

origin content for purposes of de

minimis calculations under supplement

no. 2 to part 734 of the EAR, except as

described in § 746.8(a)(5). BIS estimates

that these new controls will result in an

additional 350 license applications

being submitted to BIS annually.

2. Section 746.8(a)(2) License

Requirement for the Russia FDP Rule

New paragraph (a)(2) (Foreign-

produced ‘‘direct product’’ items subject

to the EAR under Russia FDP rule)

requirements are imposed in

conjunction with the simultaneous

creation of a new foreign ‘‘direct

product’’ rule specific to Russia (Russia

FDP rule) in § 734.9(f) of the EAR. The

Russia FDP rule establishes a license

requirement for foreign-produced items

that meet certain product scope and

destination scope requirements in

§ 734.9(f) of the EAR. Specifically, the

Russia FDP rule makes the ‘‘direct

product’’ of a wide range of CCL

software and technology, or items

produced by a complete plant or ‘major

component’ of a plant that itself is the

‘‘direct product’’ of such U.S.-origin

technology or software, when it is

known that the foreign-produced item is

destined to Russia or will be

incorporated into or used in the

‘‘production’’ or ‘‘development’’ of any

‘‘part,’’ ‘‘component,’’ or ‘‘equipment’’

produced in or destined to Russia.

Notably, the product scope of the Russia

FDP rule does not include items

designated EAR99 that are produced by

‘‘technology’’ or ‘‘software’’ as described

in § 734.9(f)(1)(i) or by a complete plant

or ‘major component’ of a plant as

described in § 734.9(f)(1)(ii). The Russia

FDP rule is described in greater detail

below.

Under paragraph (a)(2), a license is

required for the reexport, export from

abroad, or transfer (in-country) of any

foreign-produced items subject to the

EAR under the Russia FDP Rule

described in § 734.9(f) of the EAR to any

destination. The phrase ‘any

destination’ is used to address situations

involving multi-step manufacturing

processes that occur in more than one

country and in which the parties

involved have ‘‘knowledge’’ that the

foreign-produced item being produced

will ultimately be reexported or

exported from abroad to Russia. The

license requirements under paragraph

(a)(2) will apply to the reexports or

exports from abroad from manufacturing

country 1 to manufacturing country 2

(each contributing to the production

chain), when there is ‘‘knowledge’’ that

the reexport or export from abroad of

the item is ultimately destined to Russia

or incorporated into or used in the

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production or development of any part

component or equipment (not

designated EAR99) produced in or

ultimately destined to Russia.

BIS estimates new license

requirements under § 746.8(a)(2) will

result in an additional 2,000 license

applications being submitted to BIS

annually.

3. Section 746.8(a)(3) License

Requirement for the Russia-MEU FDP

Rule

New paragraph (a)(3) (Foreign-

produced ‘‘direct product’’ items subject

to the EAR under Russia-Military End

User FDP Rule) requirements are

imposed in conjunction with the

simultaneous creation by this rule of a

new foreign ‘‘direct product’’ rule

specific to Russia (Russia-Military End

User FDP Rule) in § 734.9(g) of the EAR.

The Russia-Military End User FDP rule

establishes a license requirement for

foreign-produced items that meet

certain product scope and destination

scope requirements in § 734.9(g) of the

EAR. Specifically, this Russia-Military

End User FDP rule makes the ‘‘direct

product’’ of a wide range of CCL

software and technology (any software

or technology in an ECCN in any

category of the CCL subject to the EAR,

or items produced by a plant or major

component of a plant that itself is the

‘‘direct product’’ of such U.S.-origin

technology or software) when it is

known that the foreign-produced item

will be incorporated into, or will be

used in the ‘‘production’’ or

‘‘development’’ of any ‘‘part,’’

‘‘component,’’ or ‘‘equipment’’

produced, purchased, or ordered by any

entity with a footnote 3 designation in

the license requirement column of the

Entity List. Notably, the product scope

of the Russia-Military End User FDP

rule includes items designated EAR99

that are a ‘‘direct product’’ of

‘‘technology’’ or ‘‘software’’ described in

§ 734.9(g)(1)(i) or produced by a

complete plant or ‘major component’ of

a plant as described in § 734.9(g)(1)(ii).

The Russia-MEU FDP rule is described

in greater detail below.

Section 746.8(a)(3) specifies that

except as described in paragraph (a)(4)

of this section, a license is required to

reexport, export from abroad, or transfer

(in-country), to any destination, any

foreign-produced item subject to the

EAR under § 734.9(g) of the EAR other

than food or medicine designated as

EAR99, or ECCN 5A992.c and 5D992.c

unless for Russian ‘‘government end

users’’ and Russian state-owned

enterprises (SoEs). Because the Russia-

Military End User FDP rule includes

‘‘software’’ and ‘‘technology’’ in ECCNs

in Categories 0, 1 and 2 (in addition to

the other 7 categories of the CCL), the

likelihood that EAR99 food and

medicine foreign direct products could

be subject to the EAR increases. To the

extent that the direct product of ECCN

0, 1, and 2 may encompass EAR99 food

or medicine, this rule exempts those

items from the license requirement. For

the same reasons noted above in

connection with paragraph (a)(2), this

final rule also uses the phrase ‘any

destination.’

4. Countries Excluded From Certain

Russia License Requirements Under

Section 746.8

This final rule also adds a new

paragraph § 746.8(a)(4) (Exclusion from

license requirements under paragraphs

(a)(2) and (3)) to identify countries that

BIS has determined are committed to

implementing substantially similar

export controls as part of their domestic

sanctions against Russia. These

countries warrant full or partial

exclusions, as appropriate, from the

requirements set forth under paragraphs

(a)(2) and (3) as identified in

supplement No. 3 to part 746 (Russia

Exclusions List). Similarly, this final

rule adds new paragraph (a)(5)

(Exclusion from scope of U.S.-origin

controlled content under paragraph

(a)(1)) to carve out certain content from

the scope of U.S.-origin controlled

content for de minimis purposes under

supplement No. 2 to part 734 of the EAR

when making a de minimis calculation

for Russia. New paragraph (a)(5)

specifies that the license requirements

in paragraph (a)(1) of this section are not

used to determine controlled U.S.-origin

content in a foreign-made item,

provided that: The U.S.-origin content is

described in ECCNs that either specify

only Anti-terrorism (AT) in the reason

for controls paragraph of the ECCN or is

classified under ECCN 9A991 and is

included in the Scope column of the

Russia Exclusions List; and the foreign-

made item will be reexported or

exported to Russia from a country in the

Russia Exclusions List.

As a conforming change, this final

rule also revises supplement No. 2 to

part 734—Guidelines for De Minimis

Rules, by revising the third sentence of

paragraph (a)(1), which specifies using

the license requirements in part 746 for

identifying U.S.-origin controlled

content for de minimis content. This

final rule adds a parenthetical phrase

after part 746 to add the phrase

‘‘excluding U.S.-origin content that

meets the criteria in § 746.8(a)(5).’’

Excluded countries for purposes of

§ 746.8 are identified in new

supplement No. 3 to part 746—

Countries Excluded from Certain Russia

License Requirements, also known as

the Russia Exclusions List. The new

supplement includes three columns,

identifying: (1) The countries for

purposes of the exclusion under

§ 746.8(a)(4) and (5); (2) the scope of the

exclusion; and (3) the Federal Register

document announcing the addition of

such countries to the supplement. This

final rule adds the twenty-seven

countries of the European Union,

Australia, Canada, Japan, New Zealand,

and the United Kingdom, as the first

countries in supplement No. 3 to part

746. The introductory text of the Russia

Exclusions List specifies that exclusions

may be full or partial. If a partial

exclusion applies, the applicable ECCNs

will be described in the Scope column

of list.

5. Licensing Policy for Applications

Required Under Section 746.8

Under new § 746.8(b) (Licensing

policy), applications for the export,

reexport or transfer (in-country) of items

that require a license under new

paragraph (a)(1) and (2) will be

reviewed, with certain limited

exceptions, under a policy of denial.

License applications for certain

categories of exports, reexports, and

transfers (in-country) will be reviewed

on a case-by-case basis to determine

whether the transaction would benefit

the Russian government or defense

sector. These categories are as follows:

Applications related to safety of flight,

maritime safety, to meet humanitarian

needs, in support of government space

cooperation, applications for companies

headquartered in Country Groups A:5

and A:6 to support civil

telecommunications infrastructure, or

involving government-to-government

activities. In addition, applications for

items destined to certain companies

operating in Russia will be reviewed on

a case-by-case basis if the companies

are: (1) Wholly-owned U.S. subsidiaries;

(2) foreign subsidiaries of U.S.

companies that are joint ventures with

other U.S. companies, (3) joint ventures

of U.S. companies with companies

headquartered in Country Group A:5

and A:6 in supplement no. 1 to part 740

countries, (4) wholly-owned

subsidiaries of companies

headquartered in Country Group A:5

and A:6 in supplement no. 1 to part 740

countries, or (5) joint ventures of

companies headquartered in Country

Group A:5 and A:6 with other

companies headquartered in Country

Groups A:5 and A:6. The case-by-case

review policy does not apply to

Russian-headquartered companies. This

final rule also specifies in paragraph (b)

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that license applications required under

paragraph (a)(3) will be reviewed under

a policy of denial in all cases.

6. License Exceptions for Section 746.8

License Requirements

Lastly, under new paragraph (c)

(License Exceptions), this final rule

specifies that certain license exceptions

apply to § 746.8(a)(1) and (2).

Specifically, the license exceptions that

apply are: Certain sections of License

Exception TMP for items for use by the

news media, § 740.9(a)(9); License

Exception GOV, § 740.11(b); License

Exception TSU for software updates for

civil end users provided those civil end

users are subsidiaries or joint ventures

of companies headquartered in the

United States or a country or countries

from Country Groups A:5 or A:6,

§ 740.13(c); License Exception BAG,

excluding firearms and ammunition

(paragraph (e)), § 740.14; License

Exception AVS, § 740.15 (a) and (b);

License Exception ENC, excluding

Russian ‘‘government end users’’ and

Russian state owned enterprises (SOEs),

§ 740.17; and License Exception CCD,

§ 740.19. This final rule also specifies in

paragraph (c) that no license exceptions

may overcome the license requirements

in paragraph (a)(3) except as specified in

the Entity List entry for a Footnote 3

entity on the Entity List in supplement

no. 4 to part 744 of the EAR, which is

consistent with the fact that entities on

the Entity List are generally not eligible

for license exceptions.

B. New Russia and Russia-MEU FDP

Rules

In § 734.9 (Foreign-Direct Product

(FDP) Rules), this final rule adds two

new Foreign-Direct Product (FDP) rules

as part of the new Russia sanctions. The

first rule targets Russia as a destination,

and the second targets Russian ‘military

end users.’

1. Addition of Russia FDP Rule

Through the Russia FDP rule set out

in new paragraph (f) of § 734.9 of the

EAR, this rule establishes that a foreign-

produced item located outside the

United States is subject to the EAR if it

meets both the product scope in

paragraph (f)(1) of this section and the

destination scope in paragraph (f)(2).

License requirements, license review

policy, and license exceptions

applicable to the foreign-produced items

that are subject to the EAR pursuant to

this paragraph (f) are identified in

§ 746.8, described above. Product scope

for the Russia FDP rule is defined in

paragraph (f)(1)(i) (‘‘Direct product’’ of

‘‘technology’’ or ‘‘software’’) and

paragraph (f)(1)(ii) (‘‘Direct product’’ of

a complete plant or major component of

a plant).

The criteria in paragraph (f)(1)(i)

applies to a foreign-produced item that

is not designated EAR99 and that is the

‘‘direct product’’ of U.S.-origin

‘‘technology’’ or ‘‘software’’ specified in

any ECCN in product groups D or E in

Categories 3, 4, 5, 6, 7, 8, or 9 of the

CCL. The criteria in paragraph (f)(1)(ii)

applies to a foreign-produced item that

is not designated EAR99 and is

produced by any plant or ‘major

component’ of a plant that itself is a

‘‘direct product’’ of U.S.-origin

‘‘technology’’ or U.S.-origin ‘‘software’’

and specified in any ECCN in product

groups D or E in Categories 3, 4, 5, 6,

7, 8, or 9 of the CCL. This is an

expansive list of ‘‘technology’’ and

‘‘software,’’ which will result in many

additional foreign-produced items being

considered ‘‘subject to the EAR’’

compared to the other existing FDP

rules that applied to Russia prior to the

publication of this rule. The additional

foreign-produced items that will be

‘‘subject to the EAR’’ will be subject to

the new license requirements imposed

through this rule under the Sanctions

against Russia (new § 746.8), as

described above.

For a foreign-produced item to be

subject to the EAR under the Russia FDP

rule, the criteria in new § 734.9(f)(2)

(Destination scope of the Russia FDP

rule) must also be met. New paragraph

(f)(2) specifies that a foreign-produced

item meets the destination scope of the

Russia FDP rule if there is ‘‘knowledge’’

that the foreign-produced item is

destined to Russia, or will be

incorporated into, or used in the

‘‘production’’ or ‘‘development’’ of any

‘‘part,’’ ‘‘component,’’ or ‘‘equipment’’

not designated EAR99 and produced in

or destined to Russia.

2. Addition of Russia-Military End User

(Russia-MEU) FDP Rule

The Russia-MEU FDP rule set forth in

new paragraph (g) targets Russian

‘military end users’ that, as described

below, previously were on the MEU List

and are being removed from the MEU

List and added to the Entity List in

Supplement No. 4 to part 744 of the

EAR in this final rule. To address the

significant support that these ‘military

end users’ provide to the Russian

military, a new and more expansive FDP

rule is warranted for these identified

‘military end users’ under the EAR

compared to the FDP rules that apply to

certain destinations under the EAR.

This final rule adds a new paragraph (g)

to impose this new FDP rule targeting

these Russian ‘military end users.’ A

foreign-produced item located outside

the United States is subject to the EAR

if it meets both the product scope in

paragraph (g)(1) of § 734.9 and the

destination scope in paragraph (g)(2).

License requirements, license review

policy, and license exceptions

applicable to the foreign-produced items

that are subject to the EAR pursuant to

paragraph (g), which are now identified

in § 746.8, are described above.

This final rule adds paragraph (g)(1)(i)

(‘‘Direct product’’ of ‘‘technology’’ or

‘‘software’’) and paragraph (g)(1)(ii)

(‘‘Direct product’’ of a complete plant or

major component of a plant) to define

the product scope for the Russia-MEU

FDP rule. The criteria in paragraph

(g)(1)(i) extends to the ‘‘direct product’’

of ‘‘technology’’ or ‘‘software’’ subject to

the EAR and specified in any ECCN in

product groups D or E in any category

of the CCL. Paragraph (g)(1)(ii) applies

to a foreign-produced item that is

produced by a plant or ‘major

component’ of a plant that itself is a

‘‘direct product’’ of U.S.-origin

‘‘technology’’ or U.S.-origin ‘‘software’’

subject to the EAR and specified in any

ECCN in product groups D or E in any

category of the CCL, which is an

expansive list of ‘‘technology’’ and

‘‘software.’’ This will result in many

additional foreign-produced items being

considered ‘‘subject to the EAR’’

compared to the other existing FDP

rules that applied to these Russian

‘military end users’ prior to the

publication of this rule. The additional

foreign-produced items that will be

‘‘subject to the EAR’’ will be subject to

the new license requirements being

imposed as part of the sanctions against

Russia set forth in new § 746.8.

For a foreign-produced item to be

subject to the EAR, the criteria in new

paragraph (g)(2) (End-user scope of the

Russia MEU FDP rule) must be met.

New paragraph (g)(2) specifies that a

foreign-produced item meets the

destination scope of the Russia MEU

FDP rule if there is ‘‘knowledge’’ as

specified in new paragraph (g)(2)(i)

(Activities involving Footnote 3

designated entities) that a foreign-

produced item will be incorporated

into, or will be used in the ‘‘production’’

or ‘‘development’’ of any ‘‘part,’’

‘‘component,’’ or ‘‘equipment’’

produced, purchased, or ordered by any

entity with a footnote 3 designation in

the license requirement column of the

Entity List in supplement No. 4 to part

744 of the EAR.

In a corresponding change, this final

rule adds a new footnote 3 to the Entity

List for each of the Russian ‘military end

users’ that are being removed from the

MEU List and added to the Entity list as

described below. The new footnote 3 to

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the Entity List is a key part of the

criteria for the Russia-MEU FDP rule

and will include a cross reference back

to §§ 734.9(g), 746.8, and 744.21. With

the changes described below, forty-five

entities on the Entity List now have a

footnote 3 designation, as well as two

additional entities being added to the

Entity List and two existing entities that

are being revised in this rule that will

also have the footnote 3 designation, for

a total of forty-nine entities with a

footnote 3 designation. As specified in

new paragraph (g)(2) of § 734.9, any

entity with a footnote 3 designation in

the license requirement column of the

Entity List is a party to any transaction

involving the foreign-produced item,

e.g., as a ‘‘purchaser,’’ ‘‘intermediate

consignee,’’ ‘‘ultimate consignee,’’ or

‘‘end-user.’’ A new Note 3 to paragraph

(g) specifies that for purposes of

paragraph (g), a ‘military end user’ is

any entity listed on the Entity List under

Russia with a footnote 3 designation.

C. Conforming Changes

Based on the foregoing changes to the

EAR, this final rule also makes certain

conforming changes to the Russia

industry sector sanctions in

§ 746.5(a)(1); the Commerce Country

Chart in supplement No. 1 to part 738;

the Consumer Communication Devices

license exceptions in § 740.19; and

certain licensing review policies in part

742. In addition, this rule makes a

correction to the Entity List FDP rule in

§ 734.9(e).

1. Russia Industry Sector Sanctions

Changes

Under § 746.5 (Russian industry

sector sanctions), this final rule revises

paragraph (a)(1) (General prohibition) to

make clarifying edits and add a cross

reference to new § 746.8. As this

paragraph specifies that there are other

provisions of the EAR that apply to

exports, reexports, and transfers (in-

country) to Russia, a reference to the

new sanctions against Russia in § 746.8

is needed to remind exporters,

reexporters, and transferors to also look

at § 746.8 when determining whether a

license is required. This final rule also

revises the text to remove the reference

to Section 6 of the Export

Administration Act of 1979 as this

reference is outdated with the passage of

the Export Control Reform Act of 2018

(ECRA), and a statutory reference is not

necessary. This final rule also corrects

the web address referenced in

supplement No. 2 to part 746—Russian

Industry Sector Sanction List to use the

current web address being used by the

U.S. Census Bureau regarding Schedule

B information.

2. Commerce Country Chart Change

In supplement No. 1 to part 738—

Commerce Country Chart, as a

conforming change to the addition of

new § 746.8, this final rule revises

footnote 6 to add a reference to § 746.8,

so exporters, reexporters, and

transferors are aware of the need to also

review license requirements in § 746.8

for items listed in any ECCN in

Categories 3, 4, 5, 6, 7, 8, or 9 of the

CCL.

3. License Exception CCD Changes

This final rule amends License

Exception CCD (§ 740.19), which was

previously limited to Cuba, by adding

Russia as an additional eligible

destination. While § 740.1(a) specifies

that any license exception authorizing

reexports also authorizes in-country

transfers, provided the terms and

conditions for reexports under that

license exception are met, this final rule

revises § 740.19 to add explicit

references to transfers (in-country). BIS

is making this clarification because new

§ 746.8 imposes controls on transfers

(in-country) within Russia.

In § 740.19(a) (Authorizations), this

rule adds Russia and a reference to

transfers (in-country). Under the

introductory text of paragraph (b)

(Eligible commodities and software),

this rule adds Russia and a reference to

transfers (in-country) and removes an

outdated reference to Sudan. Finally,

under paragraph (c)(1) (Organizations),

this final rule revises paragraph (c)(1)(i),

which identifies eligible end users for

License Exception CCD, to add Russia

and a reference to transfers (in-country).

The revision to paragraph (c)(1)(i)

specifies that License Exception CCD is

limited to the export, reexport, or

transfer (in-country) of eligible

commodities and software to and for the

use of independent non-governmental

organizations in Russia. This final rule

further adds the Russian Government to

the exclusions under paragraph (c)(1)(ii)

and adds a new paragraph (c)(1)(iii)

(Ineligible Russian Government

Officials) to exclude the specified

officials from receiving commodities

and software under License Exception

CCD. Only the end users named as

eligible in paragraph (c) may receive the

commodities and software eligible

under License Exception CCD. This rule

also amends paragraph (c)(2) as a

correction and clarification, to state that

License Exception CCD authorizes

exports, reexports and transfers (in-

country) to individuals.

When License Exception CCD was

initially added to the EAR in 2009, the

text of this paragraph only referenced

exports. However, a reading of

paragraph (a) of the license exception

and the preamble to the rule that added

the license exception to the EAR

indicates that License Exception CCD

was intended to authorize both exports

and reexports to individuals. See 74 FR

45985 at 45987 (9/8/2009). The addition

of transfer (in-country) will clarify that

the authorization applies not only to

reexports, but also to transfers (in-

country).

4. Part 742 (Control Policy—CCL Based

Controls) Changes

In part 742, as conforming changes to

the license review policy of denial

added under paragraph (b) to new

§ 746.8, this final rule makes changes to

license review policies in five sections:

742.2 (Proliferation of chemical and

biological weapons), 742.3 (Nuclear

nonproliferation), 742.4 (National

security), 742.5 (Missile technology),

and 742.6 (Regional stability).

Under § 742.2, this final rule revises

the second sentence of paragraph (b)(4)

to change the license review policy from

presumption of denial to policy of

denial. This final rule adds two

additional sentences to clarify that

certain items, such as items to Russia in

support of U.S.-Russia civil space

cooperation activities, are reviewed on a

case-by-case basis as specified under

§ 746.8(b).

In both §§ 742.3 and 742.5, this final

rule revises the second sentence of

paragraph (b)(4) to change the license

review policy from presumption of

denial to policy of denial. For these

sections, this final rule also revises the

third sentence to remove the reference

to commercial space launches from the

case-by-case license review policy, and

adds a cross reference to the license

review policy under § 746.8(b).

Under § 742.4, this final rule revises

the third sentence of paragraph (b)(7)(i)

to remove the reference to Russia

because the license review policy set

forth in the paragraph will no longer

apply to Russia. This final rule also

adds a new paragraph (b)(9), which

states that all applications for Russia

will be reviewed in accordance with the

licensing policy set forth in § 746.8(b).

Under § 742.6, this final rule revises

paragraph (b)(8) to remove the reference

to Russia because the license review

policy set forth in the paragraph will no

longer apply to Russia. This final rule

also adds a new paragraph (b)(9),

specifying that all applications for

Russia will be reviewed in accordance

with the licensing policy set forth in

§ 746.8(b). Finally, to establish that

license applications for export, reexport

or transfer (in-country) to or within

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Russia will also be reviewed in

accordance with the foreign policy

interest of promoting the observance of

human rights throughout the world and

consistent with United States arms

embargo policies in § 126.1 of the ITAR

(22 CFR 126.1), this final rule adds text

to new paragraph (b)(9) to carry over

certain portions of the preexisting

license review policy for Russia under

paragraph (b)(8).

5. Entity List FDP Rule Correction

On February 2, 2022, BIS published a

rule in the Federal Register entitled

‘‘Foreign-Direct Product Rules:

Organization, Clarification, and

Correction’’ (87 FR 6022), which

contained an error. In § 734.9(e), BIS

unintentionally omitted the term ‘‘U.S.-

origin’’ in the phrase ‘‘ ‘‘direct product’’

of ‘‘technology’’ or ‘‘software’’ subject to

the EAR.’’ With this final rule, BIS fixes

that error by reinserting ‘‘U.S.-origin’’ in

‘‘ ‘‘direct product’’ of ‘‘U.S.-origin’’

‘‘technology’’ or ‘‘U.S.-origin’’

‘‘software’’.’’ Lastly, as clarification for

purposes of the new Russia-Military

End User FDP rule that this rule adds to

§ 734.9(g), as described above, BIS did

not intend to include ‘‘U.S.-origin’’ for

purposes of paragraph (g)(1)(i), but did

intend its inclusion in paragraph

(g)(1)(ii), as well as in new paragraphs

(f)(1)(i) and (ii) for the Russia FDP rule.

This final rule, thus, makes clarifying

revisions to § 734.9.

D. Changes to ‘Military End Use’ and

‘End User’ Controls for Russia

This final rule revises the scope of the

‘military end use’ and ‘military end

user’ controls under § 744.21 of the EAR

to reflect the expanded controls for

Russia, which, with the publication of

this final rule, apply to all items

‘‘subject to the EAR’’ instead of to the

narrower subset of items identified in

supplement no. 2 to part 744. As a result

of the expanded controls for Russia for

‘military end users’ and ‘military end

uses,’ BIS is revising the Entity List in

supplement No. 4 to part 744 and the

Military End-User (MEU) List in

supplement no. 7 to the same part to

make conforming changes. Accordingly,

this final rule revises § 744.21

paragraphs as follows to reflect the

expanded ‘military end use’ and

‘military end user’ controls for Russia:

In paragraph (a), this final rule revises

the first sentence to remove Russia from

the part of the sentence that specifies

the prohibition applies to the countries

listed. This final rule further revises that

first sentence to add, after Venezuela,

the phrase ‘‘or any item subject to the

EAR except for food or medicine

designated as EAR99, or ECCN 5A992.c

and 5D992.c unless for Russian

‘‘government end users’’ and Russian

state-owned enterprises (SoEs) to

Russia’’ to specify that the prohibition is

broader for Russia than it is for the other

countries subject to the requirements of

§ 744.21.

BIS is revising paragraph (b)(1)

(‘Military End-User’ (MEU) List) to

provide guidance for entities on the

MEU List and for Russian entities

placed on the Entity List based on

§ 744.21(b). Because the prior

requirements of the MEU List were

limited to items identified in

supplement no. 2 to part 744 and the

Russia-MEU restrictions now apply to

all items subject to the EAR as a

consequence of the publication of this

rule, BIS is removing Russian entities

that were listed on the MEU List prior

to this rule and placing them instead on

the Entity List. This change is consistent

with the regulatory construct for these

two proscribed persons lists under the

EAR (i.e., the MEU List restrictions

apply to items identified in supplement

no. 2 to part 744 and the Entity List

restrictions, in most cases, apply to all

items subject to the EAR). This final rule

removes the references to Russia in the

context of the MEU List and specifies

that such entities may be added to

supplement No. 4 of part 744—the

Entity List—and are subject to license

requirements that apply to all items

‘‘subject to the EAR’’ except for food or

medicine designated as EAR99, or ECCN

5A992.c and 5D992.c unless for Russian

‘‘government end users’’ and Russian

state-owned enterprises (SoEs).

As conforming changes regarding the

End-User Review Committee (ERC)

processes for the MEU List, this final

rule revises paragraph (b)(1)(i) (End-

User Review Committee (ERC)) to add

references to the Entity List when the

MEU List is referenced for the

procedures in supplement No. 5 to part

744—Procedures for End-User Review

Committee Entity List and ‘Military End

User’ (MEU) List Decisions. This change

is made to clarify that the ERC

procedure for adding entities to the

MEU List also apply to additions,

modifications and removals from the

Entity List for entities added based on

§ 744.21 of the EAR.

Under paragraph (b)(1)(ii) (License

requirements for parties to the

transaction), this final rule revises the

paragraph to clarify that the license

requirements for Burma, Cambodia, the

People’s Republic of China, and

Venezuela continue to apply for exports,

reexports, and transfers (in-country) of

any item specified in supplement no. 2

to part 744 when an entity included on

the MEU List or meeting the definition

of ‘military end-user’ as defined in

§ 744.21(g) is a party to the transaction

as described in § 748.5(c) through (f) of

the EAR. This final rule also revises

paragraph (b)(1)(ii) to add a sentence to

clarify that, for purposes of Russia, a

license requirement applies to all items

subject to the EAR for entities listed in

supplement No. 4 to part 744 (the Entity

List) pursuant to § 744.21 when such an

entity is a party to the transaction as

described in § 748.5(c) through (f) of the

EAR. These changes are necessary

because, with the publication of this

final rule, the license requirements for

Russia will now be broader than for the

other four countries.

Under paragraph (b)(2) (Requests for

removal from or modification of

‘Military End User’ List (MEU)), this

final rule revises the heading to add a

reference to the Entity List. This final

rule also adds two more references to

the Entity List in this paragraph to

specify that the process for requesting

removal or modification is the same for

entities listed on the MEU List or the

Entity List on the basis of § 744.21 of the

EAR.

Under paragraph (e) (License review

standards), this final rule revises the

existing license review policy in

paragraph (e)(1) to make it specific to

Burma, Cambodia, the People’s

Republic of China (China), and

Venezuela. This final rule adds a new

sentence to paragraph (e)(1) to specify

that the license review policy for

application to or within Russia for the

license requirements described in

paragraph (a) will be a policy of denial.

Under paragraph (g) (‘Military end

user’), the final rule makes a correction

to add back the parenthetical phrase

‘‘(excluding those described in

§ 744.22(f)(2) of the EAR)’’ after the term

government intelligence or

reconnaissance organizations. This text

was inadvertently removed from the

EAR in a December 9, 2021 (86 FR

70018) final rule.

BIS estimates these changes to

§ 744.21 will result in an additional 75

license applications being submitted to

BIS annually.

E. Military End-User (MEU) List and

Entity List Changes for Russian Entities

Under § 744.11(b) (Criteria for

revising the Entity List), entities for

which there is reasonable cause to

believe, 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 that are contrary

to the national security or foreign policy

interests of the United States, and those

acting on behalf of such entities, may be

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added to the Entity List. Paragraphs

(b)(1) through (5) of § 744.11 provide an

illustrative list of activities that could be

considered contrary to the national

security or foreign policy interests of the

United States. The Entity List in

supplement no. 4 to part 744 identifies

the entities so designated. The EAR

impose additional license requirements

on, and limit the availability of most

license exceptions for, exports,

reexports, and transfers (in-country)

when an entity that is listed on the

Entity List is a party to the transaction

as described in § 748.5(c) through (f) of

the EAR. The license review policy for

each listed entity is identified in the

‘‘License Review Policy’’ column on the

Entity List, and the impact on the

availability of license exceptions is

described in the relevant Federal

Register document adding entities to the

Entity List. BIS places entities on the

Entity List pursuant to part 744 (Control

Policy: End-User and End-Use Based)

and part 746 (Embargoes and Other

Special Controls) of the EAR.

The MEU List in supplement no. 7 to

part 744 identifies entities that have

been determined by the End-User

Review Committee (ERC) to be ‘military

end users’ pursuant to § 744.21. That

section imposes additional license

requirements on, and limits the

availability of most license exceptions

for, exports, reexports, and transfers (in-

country) when an entity listed on the

MEU List is a party to the transaction as

described in § 748.5(c) through (f) of the

EAR, as specified in supplement no. 7

to part 744 and in § 744.21. Entities are

listed on the MEU List under the

destinations of Burma, Cambodia,

China, or Venezuela. The license review

policy for each listed entity is identified

in the introductory text of the MEU List

and in § 744.21(e). The MEU List’s

introductory text and § 744.21 also

specify the scope of the license

requirements and limitations on the use

of EAR license exceptions.

The ERC, composed of representatives

of the Departments of Commerce

(Chair), State, Defense, Energy and,

where appropriate, the Treasury, makes

all decisions regarding additions to,

removals from, or other modifications to

the Entity List and the MEU List. The

ERC makes all decisions to add an entry

to the Entity List or MEU List by

majority vote and all decisions to

remove or modify an entry by

unanimous vote. Decisions on Entity or

MEU List entries may also be made by

higher-level officials of agencies

represented on the ERC.

1. Additions to the Entity List

This rule implements the decision of

the Departments represented on the ERC

to add forty-seven entities to the Entity

List, consisting of the forty-five entities

being moved from the MEU List to the

Entity List and an additional two

entities that are newly listed in the EAR.

The agencies represented on the ERC

made the decision to move the forty-five

entities identified below from the MEU

List to the Entity List pursuant to the

standards set forth in §§ 744.11(b) and

744.21(b) (including the revisions made

in this final rule to the scope of the

latter section) of the EAR. Under the

circumstances of the Russia invasion of

the Ukraine, there is a greater national

security and foreign policy threat posed

by entities that have previously been

found to be supporting ‘military end

uses’ in Russia. The ERC used the same

standards set forth in §§ 744.11(b) and

744.21(b) to approve the additional two

entities being added to the Entity List.

These forty-seven entities are ‘military

end users’ under the EAR. The license

requirements that will apply to them as

a consequence of their addition to the

Entity List will further limit their ability

to obtain items subject to the EAR or

obtain the benefit of technology or

software subject to the EAR when

supporting military activities outside of

Russia in a manner contrary to U.S.

national security or foreign policy

interests.

One of the forty-five entities being

moved from the MEU List to the Entity

List, described further below, is the

Ministry of Defence of the Russian

Federation, including the Armed Forces

of Russia and all operating units

wherever located. This entity was listed

as the Ministry of Defence RF on the

MEU List, but will be listed on the

Entity List under its full name, Ministry

of Defence of the Russian Federation, in

this final rule. The entry this rule adds

for the Ministry of Defence of the

Russian Federation includes the

national armed services (army, navy,

marine, air force, or coast guard), as well

as the national guard and national

police, government intelligence or

reconnaissance organizations of the

Russian Federation. In addition, this

entry restricts exports, reexports and

transfers (in-country) to the national

armed services (army, navy, marine, air

force, or coast guard), as well as the

national guard and national police,

government intelligence or

reconnaissance organizations of Russia

wherever located worldwide.

As a result of the changes to § 744.21

described in this final rule, the license

requirements for ‘military end users’ in

Russia, now apply to all items ‘‘subject

to the EAR,’’ except for food or

medicine designated as EAR99, or ECCN

5A992.c and 5D992.c unless for Russian

‘‘government end users’’ and Russian

state-owned enterprises (SoEs).

Accordingly, the agencies represented

on the ERC decided to add forty-five

entities to the Entity List. As part of this

ERC review effort, the ERC also

determined that the additional two

entities should be added to the Entity

List because they are ‘military end

users.’ The license requirements of the

MEU List are limited to items identified

in supplement no. 2 to part 744.

Therefore, the agencies represented on

the ERC determined that the MEU List

was no longer the appropriate

supplement of the EAR in which to list

these forty-five ‘military end users’ in

Russia and that, for the additional two

entities being added, the public would

benefit from their identification on the

Entity List as ‘military end users.’

The forty-five entities being moved

from the MEU List to the Entity List are:

Admiralty Shipyard JSC; Aleksandrov

Scientific Research Technological

Institute NITI; Argut OOO;

Communication Center of the Ministry

of Defence; Federal Research Center

Boreskov Institute of Catalysis; Federal

State Budgetary Enterprise of the

Administration of the President of

Russia; Federal State Budgetary

Enterprise Special Flight Unit Rossiya of

the Administration of the President of

Russia; Federal State Unitary Enterprise

Dukhov Automatics Research Institute

(VNIIA); Foreign Intelligence Service

(SVR); Forensic Center of Nizhniy

Novgorod Region Main Directorate of

the Ministry of Interior Affairs; Irkut

Corporation; Irkut Research and

Production Corporation Public Joint

Stock Company; Joint Stock Company

Scientific Research Institute of

Computing Machinery; JSC Central

Research Institute of Machine Building

(JSC TsNIIMash); JSC Kazan Helicopter

Plant Repair Service; JSC Rocket and

Space Centre—Progress; Kamensk-

Uralsky Metallurgical Works J.S. Co.;

Kazan Helicopter Plant PJSC;

Komsomolsk-na-Amur Aviation

Production Organization (KNAAPO);

Ministry of Defence of the Russian

Federation; Moscow Institute of Physics

and Technology; NPO High Precision

Systems JSC; NPO Splav JSC;

Oboronprom OJSC; PJSC Beriev Aircraft

Company; PJSC Irkut Corporation; PJSC

Kazan Helicopters; POLYUS Research

Institute of M.F. Stelmakh Joint Stock

Company; Promtech-Dubna, JSC; Public

Joint Stock Company United Aircraft

Corporation; Radiotechnical and

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Information Systems (RTI) Concern;

Rapart Services LLC; Rosoboronexport

OJSC (ROE); Rostec (Russian

Technologies State Corporation);

Rostekh—Azimuth; Russian Aircraft

Corporation MiG; Russian Helicopters

JSC; Sukhoi Aviation JSC; Sukhoi Civil

Aircraft; Tactical Missiles Corporation

JSC; Tupolev JSC; UEC-Saturn; United

Aircraft Corporation; United Engine

Corporation; and United Instrument

Manufacturing Corporation.

The ERC decided to add two new

entities to the Entity List: The

International Center for Quantum Optics

and Quantum Technologies LLC, and SP

Kvant. Both are being added, under the

destination of Russia, to the Entity List

for acquiring and attempting to acquire

U.S.-origin items in support of nuclear

explosive activities, unsafeguarded

nuclear activities, and safeguarded and

unsafeguarded nuclear fuel-cycle

activities for Russia. The ERC

determined that these activities are

contrary to the national security and

foreign policy interests of the United

States under § 744.11(b) of the EAR.

These two entities are considered

‘military end-users’ for purposes of

§ 744.21(b).

Pursuant to §§ 744.11(b) and 744.21(b)

of the EAR, the ERC determined that the

conduct of the above-described forty-

seven entities raises sufficient concerns

that prior review, via the imposition of

a license requirement for exports,

reexports, or transfers (in-country), of all

items subject to the EAR, except for food

or medicine designated as EAR99

involving these forty-seven entities is

appropriate. This rule also excludes

ECCN 5A992.c and 5D992.c from the

license requirement involving eight of

the entities being added that are not

Russian ‘‘government end users’’ and

Russian state-owned enterprises (SoEs).

The ERC also determined that the

possible issuance of license denials or

the possible imposition of license

conditions on shipments to these

entities will enhance BIS’s ability to

prevent violations of the EAR or

otherwise protect U.S. national security

or foreign policy interests.

For the forty-seven entities added to

the Entity List in this final rule, BIS

imposes a license requirement that

applies to all items subject to the EAR.

BIS imposes a license review policy of

denial for these forty-seven entities. In

addition, no license exceptions are

available for exports, reexports, or

transfers (in-country) where the entities

added to the Entity List in this rule are

parties to the transaction as described in

§ 748.5(c) through (f), with one

exception. The United States

Government authorization under

License Exception GOV (§ 740.11(b)(2)

and (e)) is available for two entities

being added to the Entity List: JSC

Central Research Institute of Machine

Building (JSC TsNIIMash) and JSC

Rocket and Space Centre—Progress.

Also as described above under the

description of § 734.9, this final rule

adds new Footnote 3 to the Entity List

for each of the forty-five Russian

‘military end users’ that are being

moved from the MEU List to the Entity

list, as well as to the additional two

entities added to the Entity List. New

Entity List footnote 3 is part of the

criteria for Russia-MEU FDP rule and

will include a cross reference back to

§§ 734.9(g) and 746.8. More entities may

be added to Footnote 3 in the future.

For the reasons described above, this

final rule adds the following forty-seven

entities to the Entity List. The two new

entities added to the Entity List that

were not previously on the MEU List are

designated with an asterisk:

RUSSIA

•Admiralty Shipyard JSC;

•Aleksandrov Scientific Research

Technological Institute NITI;

•Argut OOO;

•Communication Center of the

Ministry of Defence;

•Federal Research Center Boreskov

Institute of Catalysis;

•Federal State Budgetary Enterprise of

the Administration of the President of

Russia;

•Federal State Budgetary Enterprise

Special Flight Unit Rossiya of the

Administration of the President of

Russia;

•Federal State Unitary Enterprise

Dukhov Automatics Research Institute

(VNIIA);

•Foreign Intelligence Service (SVR);

•Forensic Center of Nizhniy Novgorod

Region Main Directorate of the

Ministry of Interior Affairs;

•*International Center for Quantum

Optics and Quantum Technologies

LLC;

•Irkut Corporation;

•Irkut Research and Production

Corporation Public Joint Stock

Company;

•Joint Stock Company Scientific

Research Institute of Computing

Machinery;

•JSC Central Research Institute of

Machine Building (JSC TsNIIMash);

•JSC Kazan Helicopter Plant Repair

Service;

•JSC Rocket and Space Centre—

Progress;

•Kamensk-Uralsky Metallurgical

Works J.S. Co.;

•Kazan Helicopter Plant PJSC;

Komsomolsk-na-Amur Aviation

Production Organization (KNAAPO);

•Ministry of Defence of the Russian

Federation including the national

armed services (army, navy, marine,

air force, or coast guard), as well as

the national guard and national

police, government intelligence or

reconnaissance organizations of the

Russian Federation;

•Moscow Institute of Physics and

Technology;

•NPO High Precision Systems JSC;

•NPO Splav JSC;

•Oboronprom OJSC;

•PJSC Beriev Aircraft Company;

•PJSC Irkut Corporation;

•PJSC Kazan Helicopters;

•POLYUS Research Institute of M.F.

Stelmakh Joint Stock Company;

•Promtech-Dubna, JSC;

•Public Joint Stock Company United

Aircraft Corporation;

•Radiotechnical and Information

Systems (RTI) Concern;

•Rapart Services LLC;

•Rosoboronexport OJSC (ROE);

•Rostec (Russian Technologies State

Corporation);

•Rostekh—Azimuth;

•Russian Aircraft Corporation MiG;

•Russian Helicopters JSC;

•*SP Kvant;

•Sukhoi Aviation JSC;

•Sukhoi Civil Aircraft;

•Tactical Missiles Corporation JSC;

•Tupolev JSC;

•UEC-Saturn;

•United Aircraft Corporation;

•United Engine Corporation; and

•United Instrument Manufacturing

Corporation.

The acronym ‘‘a.k.a.,’’ which is an

abbreviation of ‘‘also known as,’’ is used

in entries on the Entity List to identify

aliases, thereby assisting exporters,

reexporters, and transferors in

identifying entities on the Entity List.

2. Revision to the Entity List

This rule implements a modification

to two existing entries for ‘‘Federal

Security Service (FSB)’’ and ‘‘Main

Intelligence Directorate’’ that were both

first added to the Entity List on January

4, 2017 (82 FR 724). Specifically, this

rule modifies the entry for these entities

by adding a Footnote 3 designation as

described above because these existing

entities have also been determined by

the ERC to be ‘military end users.’

3. Removals From the MEU List

This rule removes the forty-five

entities located in Russia that are

described above from the MEU List.

These forty-five entities were added to

the MEU List in three final rules. One

entry, for JSC Kazan Helicopter, was

added to the MEU List on July 12, 2021

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(86 FR 36509). One entry, for Moscow

Institute of Physics and Technology,

was added to the MEU List on

November 26, 2021 (86 FR 67323). The

remaining forty-three entries were

added to the MEU List on December 23,

2020 (85 FR 83799). As described above,

the ERC determined to remove these

forty-five entries from the MEU List and

add them to the Entity List to reflect the

new scope of the license requirements

for military end users in Russia

pursuant to § 744.21, which will now

apply to all items ‘‘subject to the EAR’’

except for food or medicine designated

as EAR99, or ECCN 5A992.c and

5D992.c unless for Russian ‘‘government

end users’’ and Russian state-owned

enterprises (SoEs). The listing of entities

added to the Entity List, above, without

an asterisk is identical to the list of

entities being removed from the MEU

List.

F. Comprehensive Export Restrictions

for the Covered Regions of Ukraine;

Conforming Revisions to Crimea Region

of Ukraine Provisions

1. Background on Need for These

Changes

On February 21, 2022, President

Joseph Biden issued Executive Order

(E.O.) 14065, finding that the Russian

Federation (Russia)’s ‘‘purported

recognition of the so-called Donetsk

People’s Republic (DNR) or Luhansk

People’s Republic (LNR) regions of

Ukraine contradicts Russia’s

commitments under the Minsk

agreements and further threatens the

peace, stability, sovereignty, and

territorial integrity of Ukraine, and

thereby constitutes an unusual and

extraordinary threat to the national

security and foreign policy of the United

States.’’ E.O. 14065 builds upon and

expands the scope of the national

emergency declared by President Barack

Obama in E.O. 13660 of March 6, 2014

with respect to Russia’s actions

involving Ukraine. Subsequent E.O.s,

including E.O. 13661 of March 16, 2014,

E.O. 13662 of March 20, 2014, and E.O.

13685 of December 19, 2014, either

expanded further or otherwise took

additional steps under President

Obama’s declaration of national

emergency to address Russia’s

destabilizing conduct.

Section 10 of E.O. 14065 directs all

executive departments and agencies of

the United States to take all appropriate

measures within their authority to

implement the E.O. Section One of E.O.

14065 prohibits ‘‘the exportation,

reexportation, sale, or supply, directly

or indirectly, from the United States, or

by a United States person, wherever

located, of any goods, services, or

technology to the Covered Regions[.]’’

Consistent with and to implement this

prohibition, BIS is expanding the

restrictions in § 746.6 of the EAR, to

apply to export, reexport, and in-

country transfer transactions involving

the so-called DNR and LNR regions of

Ukraine (collectively, the Covered

Regions). BIS initially promulgated the

§ 746.6 restrictions consistent with and

to implement E.O. 13685 of December

19, 2014 (79 FR 77357), to which E.O.

14065 is similar in scope, pursuant to

which President Obama issued an

export prohibition related to the Crimea

region of the Ukraine, to address the

Russian occupation of that region in

2014. Consistent with and to implement

this prohibition, BIS imposed new

license requirements with respect to

certain export, reexport, and in-country

transfer transactions involving the

Crimea region of Ukraine. (80 FR 4778,

Jan. 29, 2015)

In this rule BIS amends the EAR by

imposing a license requirement for the

export and reexport to the Covered

Regions of Ukraine, and the transfer

within the Covered Regions of Ukraine,

of all items subject to the EAR, other

than food and medicine designated as

EAR99 and certain software for internet-

based personal communications. For

purposes of this rule, and consistent

with E.O. 13685 and E.O. 14065, the

term ‘Covered Regions of Ukraine’

includes the land territory in the DNR

and LNR regions, as well as any

maritime areas over which sovereignty,

sovereign rights, or jurisdiction is

claimed based on occupation of

(Crimea), or purported sovereignty (DNR

and LNR) over, those land territories. In

addition to these substantive changes to

§ 746.6 of the EAR, BIS is making

organizational and related technical

edits to account for these restrictions on

the Covered Regions of Ukraine and to

simplify § 746.6 and facilitate

compliance with the provision’s

requirements.

This rule establishes a policy of

denial for the review of applications

involving all such exports or reexports

to the Covered Regions of Ukraine and

transfers within the Covered Regions of

Ukraine, except with respect to items

not exempt from the license

requirement but authorized under the

Department of the Treasury’s Office of

Foreign Assets Control (OFAC) Ukraine

related General Licenses (discussed in

greater detail in the next paragraph),

which BIS will review on a case-by-case

basis. Certain license exceptions are

available for exports or reexports to the

Covered Regions of Ukraine or transfers

within the Covered Regions of Ukraine,

specifically, the same license exceptions

currently available under § 746.6 of the

EAR to the Crimea region of Ukraine.

As stated above, license applications

for exports, reexports or transfers

authorized under OFAC General

Licenses will be reviewed on a case-by-

case basis. In conjunction with the

issuance of E.O. 14065, OFAC issued six

General Licenses (Ukraine General

License numbers 17–22) to ensure that

humanitarian and other related

activities can continue in these regions.

These General Licenses allow a short-

term wind down of activities, as well as

for the export to the regions of food,

medicine, and medical devices, and

ensure personal remittances can

continue to flow. They also allow

telecommunications and internet

services to remain operational, and mail

services to continue, as well as allow

international organizations to be able to

provide aid to the people in the Covered

Regions of Ukraine.

This final rule includes a savings

clause as described below. If an export,

reexport or transfer (in-country) does

not qualify for the savings clause

described below but falls within the

scope of OFAC’s Ukraine related

General Licenses, an applicant may note

this fact in its BIS license application

either under block 24 or in a separate

attachment. BIS will consider this fact

as part of the license review process.

As a reminder, the Donetsk People’s

Republic and Luhansk People’s

Republic are listed on the Entity List. A

license applies for the export, reexport,

and transfer (in-country) of all items

subject to the EAR that are destined for

these two entities. See 79 FR 42452 (July

22, 2014) (‘‘Donetsk People’s Republic

and Luhansk People’s Republic are both

separatist organizations that operate in

eastern Ukraine.’’).

2. Revisions to the EAR for the Covered

Regions of Ukraine; Conforming

Revisions to Crimea Region of Ukraine

Provisions

To implement the changes described

above, this final rule revises § 746.6

(Crimea region of Ukraine and the

Covered Regions of Ukraine) in part 746

(Embargoes and Other Special Controls)

of the EAR. The existing restrictions

regarding Crimea are now located in

paragraph (a)(1), and new paragraph

(a)(2) imposes a license requirement for

exports and reexports to the Covered

Regions of Ukraine, and the transfer

within the Covered Regions of Ukraine,

of all items subject to the EAR, other

than food and medicine designated as

EAR99 and certain software that is

necessary to enable the exchange of

personal communications over the

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internet. Such software must either be

designated EAR99 or classified as mass

market software under Export Control

Classification Number (ECCN) 5D992.c

of the EAR and must be widely available

to the public at no cost to the user. The

license review policy for Crimea is now

located in paragraph (b)(1), and new

paragraph (b)(2) specifies that the

license review policy for the Covered

Regions of Ukraine is a policy of denial,

except for items authorized under

OFAC’s Ukraine related General

Licenses which will be reviewed on a

case-by-case basis.

The amendments to § 746.6 of this

rule do not change the license

requirements or available license

exceptions for the Crimea region of

Ukraine. However, this rule amends the

licensing policy, as set forth in new

paragraph (b), from a presumption of

denial to a policy of denial, to

harmonize the license review policy for

the Crimea region of Ukraine with the

more restrictive policy of denial that

applies to the Covered Regions of

Ukraine given the significant national

security and foreign policy concerns

related to those areas.

Paragraph (c) specifies the license

exceptions that are available to

overcome the license requirements set

forth in this section with respect to

either the Crimea region of Ukraine or

the Covered Regions of Ukraine. No

license exceptions other than those

license exceptions (or paragraphs of

license exceptions) listed in paragraph

(c) are available to overcome the license

requirements of § 746.6 of the EAR. New

paragraph (d) defines the terms ‘Covered

Regions of Ukraine’ and ‘software

necessary to enable the exchange of

personal communications over the

internet’ for purposes of this provision.

The license requirements imposed

under part 746 of the EAR are

independent of the Commerce Control

List (CCL)-based license requirements.

However, this rule revises the cross

reference to § 746.6 by revising footnote

8 to the Commerce Country Chart in

supplement No. 1 to part 738. This

footnote 8 makes persons aware of the

additional part 746 license requirements

under § 746.6 that apply for the ‘Crimea

region of Ukraine and the Covered

Regions of Ukraine.’ When applying for

a license to the Crimea region of

Ukraine or the Covered Regions of

Ukraine, applicants should select

‘Crimea, DNR, and LNR regions’ in the

drop-down menu option under the

country of Ukraine in the Simplified

Network Application Processing System

(SNAP–R).

This final rule, as a conforming

change to the addition of § 746.6 and the

restrictions under paragraph (c), adds

‘the Covered Regions of Ukraine’ to the

general restriction on the use of license

exceptions in § 740.2 of the EAR for

sanctioned countries by revising the

parenthetical phrase ‘‘(Cuba, Iran, North

Korea, Syria, and Crimea region).’’ This

final rule adds ‘the Covered Regions of

Ukraine’ to this parenthetical phrase

because the license requirements under

§ 746.6 apply to all items subject to the

EAR, and the only license exceptions

available to overcome the license

requirement are those specified in

§ 746.6.

In addition to the EAR controls that

this final rule is adding to § 746.6,

exporters, reexporter and transferors

will also be required to ensure that any

transaction with Crimea and ‘the

Covered Regions of Ukraine’ occurs in

accordance with all applicable OFAC

requirements. BIS and OFAC both

exercise licensing jurisdiction for the

Crimea region of Ukraine and for ‘‘the

Covered Regions of Ukraine,’’ so for

most exports, reexports and transfers

(in-country), an authorization will be

required from both BIS and OFAC.

Lastly, this final rule revises the

definition of ‘‘Food’’ in § 772.1 to

include a reference to ‘the Covered

Regions of Ukraine’ along with North

Korea, Syria, and Crimea that are

referenced in the definition. BIS

estimates that these new controls for the

§ 746.6 will result in an additional 20

license applications being submitted to

BIS annually.

G. Russia: Amendments to Supplement

No. 1 to Part 740 of the EAR Consistent

With the ITAR § 126.1

In supplement no. 1 to part 740, this

final rule updates the Country Group

designation for Russia to reflect its

identification by the Department of

State as a country subject to a United

States arms embargo. BIS harmonizes

the arms embargo-related provisions in

the EAR with the Directorate of Defense

Trade Control’s (DDTC’s) regulation of

arms embargoes in § 126.1 of the

International Traffic in Arms

Regulations (ITAR) (22 CFR 126.1,

Prohibited Exports, Imports, and Sales

to or from Certain Countries). ITAR

§ 126.1 includes countries subject to

United Nations Security Council

(UNSC) and U.S. arms embargoes. BIS

primarily implements such controls

through Country Group D:5 ‘‘U.S. Arms

Embargoed Countries,’’ in supplement

no. 1 to part 740 of the EAR. With this

rule, BIS revises Country Group D to

add Russia to Country Group D:5

consistent with the Department of

State’s amendments adding this country

to ITAR § 126.1 on March 18, 2021 (86

FR 14802).

Countries listed in Country Group D:5

are subject to additional restrictions in

the EAR, including with respect to de

minimis U.S. content, license exception

availability, and licensing policy for

certain items. For example, license

applications for the export or reexport of

items classified under 9x515 or ‘‘600

series’’ Export Control Classification

Numbers (ECCNs) to countries in

Country Group D:5 are reviewed

consistent with the policies in § 126.1 of

the ITAR, as provided in paragraph

(b)(1)(ii) of § 742.4 of the EAR.

Savings Clause

For the sanctions against Russia

added under § 746.8(a)(2) and (3),

shipments of items removed from

eligibility for a License Exception or

reexport or transfer (in-country) without

a license (NLR) as a result of this

regulatory action that were en route

aboard a carrier to a port of export,

reexport, or transfer (in-country), on

March 26, 2022, pursuant to actual

orders for 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

reexport or transfer (in-country) without

a license (NLR).

For all other 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 en route aboard a

carrier to a port of export, reexport, or

transfer (in-country), on February 24,

2022, 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).

Export Control Reform Act of 2018

On August 13, 2018, the President

signed into law the John S. McCain

National Defense Authorization Act for

Fiscal Year 2019, which included the

Export Control Reform Act of 2018

(ECRA) (codified, as amended, at 50

U.S.C. Sections 4801–4852). ECRA

provides the legal basis for BIS’s

principal authorities and serves as the

authority under which BIS issues this

rule. To the extent it applies to certain

activities that are the subject of this rule,

the Trade Sanctions Reform and Export

Enhancement Act of 2000 (TSRA)

(codified, as amended, at 22 U.S.C.

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Sections 7201–7211) also serves as

authority for this rule. This action also

implements measures pursuant to the

International Emergency Economic

Powers Act, 50 U.S.C. 1701 et seq., and

the emergency expanded upon by

Executive Order 14065 of February 21,

2022.

Rulemaking Requirements

1. This final rule is not a ‘‘significant

regulatory action’’ because it

‘‘pertain[s]’’ to a ‘‘military or foreign

affairs function of the United States’’

under sec. 3(d)(2) of Executive Order

12866.

2. Notwithstanding any other

provision of law, no person is required

to respond to, nor shall any person be

subject to a penalty for failure to comply

with, a collection of information subject

to the requirements of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.) (PRA), unless that collection of

information displays a currently valid

Office of Management and Budget

(OMB) Control Number.

This rule involves the following

OMB-approved collections of

information subject to the PRA: 0694–

0088, ‘‘Multi-Purpose Application,’’

which carries a burden hour estimate of

29.6 minutes for a manual or electronic

submission; 0694–0096 ‘‘Five Year

Records Retention Period,’’ which

carries a burden hour estimate of less

than 1 minute; and 0607–0152

‘‘Automated Export System (AES)

Program,’’ which carries a burden hour

estimate of 3 minutes per electronic

submission. This rule changes the

respondent burden under these control

numbers by increasing the estimated

number of submissions by 2,445.

Specifically, BIS estimates that these

new controls on Russia under the EAR

will result in an increase of 2,445

license applications submitted annually

to BIS. BIS estimates the burden hours

associated with these collections would

increase by 1,247 (i.e., 2,445

applications × 30.6 minutes per

response) for a total estimated cost

increase of $37,410 (i.e., 1,247 hours ×

$30 per hour). The $30 per hour cost

estimate for OMB control number 0694–

0088 is consistent with the salary data

for export compliance specialists

currently available through

glassdoor.com (glassdoor.com estimates

that an export compliance specialist

makes $55,280 annually, which

computes to roughly $26.58 per hour).

This increase is expected to exceed the

existing estimates currently associated

with OMB control numbers 0694–0088,

but not for 0694–0096 and 0607–0152

which have minimal burden increases

as a result of this rule. Consistent with

5 CFR 1320.13, BIS requested

emergency clearance for an increase in

the burden estimate under collection

0694–0088 because of the additional

license requirements imposed by this

rule. OMB has approved the emergency

collection for the increase in the total

number of licenses.

3. This rule does not contain policies

with federalism implications as that

term is defined in Executive Order

13132.

4. Pursuant to section 1762 of the

Export Control Reform Act of 2018 (50

U.S.C. 4821) (ECRA), this action is

exempt from the Administrative

Procedure Act (APA) (5 U.S.C. 553)

requirements for notice of proposed

rulemaking, opportunity for public

participation, and delay in effective

date. While section 1762 of ECRA

provides sufficient authority for such an

exemption, this action is also

independently exempt from these APA

requirements because it involves a

military or foreign affairs function of the

United States (5. U.S.C. 553(a)(1)).

5. Because a notice of proposed

rulemaking and an opportunity for

public comment are not required to be

given for this rule by 5 U.S.C. 553, or

by any other law, the analytical

requirements of the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq., are

not applicable. Accordingly, no

regulatory flexibility analysis is required

and none has been prepared.

List of Subjects

15 CFR Part 734

Administrative practice and

procedure, Exports, Inventions and

patents, Research, Science and

technology.

15 CFR Parts 738 and 772

Exports.

15 CFR Part 740

Administrative practice and

procedure, Exports, Reporting and

recordkeeping requirements.

15 CFR Part 742

Exports, Terrorism.

15 CFR Part 744

Exports, Reporting and recordkeeping

requirements, Terrorism.

15 CFR Part 746

Exports, Reporting and recordkeeping

requirements.

For the reasons stated in the

preamble, parts 734, 738, 740, 742, 744,

746, and 772 of the Export

Administration Regulations (15 CFR

parts 730 through 774) are amended as

follows:

PART 734—SCOPE OF THE EXPORT

ADMINISTRATION REGULATIONS

■1. The authority citation for 15 CFR

part 734 continues to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.

12938, 59 FR 59099, 3 CFR, 1994 Comp., p.

950; E.O. 13020, 61 FR 54079, 3 CFR, 1996

Comp., p. 219; E.O. 13026, 61 FR 58767, 3

CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR

44025, 3 CFR, 2001 Comp., p. 783; E.O.

13637, 78 FR 16129, 3 CFR, 2014 Comp., p.

223; Notice of November 10, 2021, 86 FR

62891 (November 12, 2021).

■2. Section 734.9 is amended as

follows:

■a. In paragraph (e)(1)(ii), remove the

text ‘‘ ‘‘direct product’’ of ‘‘technology’’

or ‘‘software’’ subject to the EAR’’ and

add, in its place, the text ‘‘ ‘‘direct

product’’ of U.S.-origin ‘‘technology’’ or

‘‘software’’.

■b. Add paragraphs (f) and (g).

The additions read as follows:

§ 734.9 Foreign-Direct Product (FDP)

Rules.

* * * * *

(f) Russia FDP rule. A foreign-

produced item is subject to the EAR if

it meets both the product scope in

paragraph (f)(1) of this section and the

destination scope in paragraph (f)(2) of

this section. See § 746.8 of the EAR for

license requirements, license review

policy, and license exceptions

applicable to foreign-produced items

that are subject to the EAR pursuant to

this paragraph (f).

(1) Product scope of Russia FDP rule.

The product scope applies if a foreign-

produced item meets the conditions of

either paragraph (f)(1)(i) or (ii) of this

section.

(i) ‘‘Direct product’’ of ‘‘technology’’

or ‘‘software.’’ A foreign-produced item

meets the product scope of this

paragraph (f)(1)(i) if the foreign-

produced item is not designated EAR99

and is a ‘‘direct product’’ of U.S.-origin

‘‘technology’’ or ‘‘software’’ subject to

the EAR that is specified in any ECCN

in product groups D or E in Categories

3, 4, 5, 6, 7, 8, or 9 of the CCL; or

(ii) ‘‘Direct product’’ of a complete

plant or ‘major component’ of a plant.

A foreign-produced item, meets the

product scope of this paragraph (f)(1)(ii)

if the foreign-produced item is not

designated EAR99 and is produced by

any plant or ‘major component’ of a

plant that is located outside the United

States, when the plant or ‘major

component’ of a plant, whether made in

the United States or a foreign country,

itself is a ‘‘direct product’’ of U.S.-origin

‘‘technology’’ or ‘‘software’’ subject to

the EAR that is specified in any ECCN

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in product groups D or E in Categories

3, 4, 5, 6, 7, 8, or 9 of the CCL.

(2) Destination scope of the Russia

FDP rule. A foreign-produced item

meets the destination scope of this

paragraph (f)(2) if there is ‘‘knowledge’’

that the foreign-produced item is

destined to Russia or will be

incorporated into or used in the

‘‘production’’ or ‘‘development’’ of any

‘‘part,’’ ‘‘component,’’ or ‘‘equipment’’

not designated EAR99 and produced in

or destined to Russia.

(g) Russia-Military End User FDP rule.

A foreign-produced item is subject to

the EAR if it meets both the product

scope in paragraph (g)(1) of this section

and the end-user scope in paragraph

(g)(2) of this section. See § 746.8 of the

EAR for license requirements, license

review policy, and license exceptions

applicable to foreign-produced items

that are subject to the EAR pursuant to

this paragraph (g).

(1) Product Scope of Russia-Military

End User FDP rule. The product scope

applies if a foreign-produced item meets

the conditions of either paragraph

(g)(1)(i) or (ii) of this section.

(i) ‘‘Direct product’’ of ‘‘technology’’

or ‘‘software.’’ A foreign-produced item

meets the product scope of this

paragraph (g)(1)(i) if the foreign-

produced item is a ‘‘direct product’’ of

‘‘technology’’ or ‘‘software’’ subject to

the EAR and specified in any ECCN in

product groups D or E in any categories

of the CCL; or

(ii) ‘‘Direct product’’ of a complete

plant or ‘major component’ of a plant.

A foreign-produced item meets the

product scope of this paragraph (g)(1)(ii)

if the foreign-produced item is produced

by any plant or ‘major component’ of a

plant that is located outside the United

States, when the plant or ‘major

component’ of a plant, whether made in

the United States or a foreign country,

itself is a ‘‘direct product’’ of U.S.-origin

‘‘technology’’ or ‘‘software’’ subject to

the EAR that is specified in any ECCN

in product groups D or E in any

categories of the CCL.

(2) End-user scope of the Russia

‘Military End User’ FDP rule. A foreign-

produced item meets the end-user scope

of this paragraph (g)(2) if there is

‘‘knowledge’’ that:

(i) Activities involving footnote 3

designated entities. The foreign-

produced item will be incorporated

into, or used in the ‘‘production’’ or

‘‘development’’ of any ‘‘part,’’

‘‘component,’’ or ‘‘equipment’’

produced, purchased, or ordered by any

entity with a footnote 3 designation in

the license requirement column of the

Entity List in Supplement No. 4 to part

744 of the EAR; or

(ii) Footnote 3 designated entities as

transaction parties. Any entity with a

footnote 3 designation in the license

requirement column of the Entity List in

Supplement No. 4 to part 744 of the

EAR is a party to any transaction

involving the foreign-produced item,

e.g., as a ‘‘purchaser,’’ ‘‘intermediate

consignee,’’ ‘‘ultimate consignee,’’ or

‘‘end-user.’’

Note 3 to paragraph (g). A ‘military end

user’ for purposes of paragraph (g) is any

entity listed on the Entity List in Supplement

No. 4 to part 744 of the EAR under Russia

with a footnote 3 designation.

■3. Supplement No. 2 to part 734 is

amended by revising the third and

fourth sentences of paragraph (a)(1) to

read as follows:

Supplement No. 2 to Part 734—

Guidelines for De Minimis Rules

(a) * * *

(1) * * * For purposes of identifying U.S.-

origin controlled content, you should consult

the Commerce Country Chart in Supplement

No. 1 to part 738 of the EAR and controls

described in part 746 of the EAR (excluding

U.S.-origin content that meets the criteria in

§ 746.8(a)(5)). Part 744 of the EAR should not

be used to identify controlled U.S. content

for purposes of determining the applicability

of the de minimis rules. * * *

* * * * *

PART 738—COMMERCE CONTROL

LIST OVERVIEW AND THE COUNTRY

CHART

■4. The authority citation for 15 CFR

part 738 continues to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; 10 U.S.C.

8720; 10 U.S.C. 8730(e); 22 U.S.C. 287c; 22

U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22

U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 1824;

50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22

U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR,

1996 Comp., p. 228; E.O. 13222, 66 FR 44025,

3 CFR, 2001 Comp., p. 783.

■5. Supplement no. 1 to part 738 is

amended by revising footnotes 6 and 8

to read as follows:

Supplement No. 1 to Part 738—

Commerce Country Chart

* * * * *

6

See § 746.5 of the EAR for additional

license requirements under the Russian

Industry Sector Sanctions for ECCNs 0A998,

1C992, 3A229, 3A231, 3A232, 6A991, 8A992,

and 8D999 and items identified in

Supplement No. 2 to part 746 of the EAR. See

§ 746.8 of the EAR for Sanctions against

Russia, including additional license

requirements for items listed in any ECCN in

Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL.

* * * * *

8

See § 746.6 of the EAR for additional

license requirements for exports and

reexports to the Crimea region of Ukraine and

the so-called Donetsk People’s Republic

(DNR) and Luhansk People’s Republic (LNR)

regions of Ukraine and transfers (in-country)

within the Crimea, DNR, and LNR regions of

Ukraine for all items subject to the EAR,

other than food and medicine designated as

EAR99 and certain EAR99 or ECCN 5D992.c

software for internet-based communications.

PART 740—LICENSE EXCEPTIONS

■6. The authority citation for 15 CFR

part 740 continues to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.

7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR,

1996 Comp., p. 228; E.O. 13222, 66 FR 44025,

3 CFR, 2001 Comp., p. 783.

■7. Section 740.2 is amended by

revising paragraph (a)(6) to read as

follows:

§ 740.2 Restrictions on all License

Exceptions.

(a) * * *

(6) The export or reexport is to a

sanctioned destination (Cuba, Iran,

North Korea, Syria, Crimea region of

Ukraine, and the so-called Donetsk

People’s Republic (DNR) and Luhansk

People’s Republic (LNR) regions of

Ukraine) or a license is required based

on a limited sanction (Russia) unless a

license exception or portion thereof is

specifically listed in the license

exceptions paragraph pertaining to a

particular sanctioned country in part

746 of the EAR.

* * * * *

■8. Section 740.19 is amended by

revising paragraphs (a), (b) introductory

text, and (c) to read as follows:

§ 740.19 Consumer Communications

Devices (CCD).

(a) Authorizations. This section

authorizes the export, reexport, or

transfer (in-country) of commodities and

software to Cuba and Russia subject to

the requirements stated in this section.

This section does not authorize U.S.

owned or controlled entities in third

countries to engage in reexports of

foreign produced commodities to Cuba

for which no license would be issued by

the Department of the Treasury

pursuant to 31 CFR 515.559.

(b) Eligible commodities and software.

Commodities and software in

paragraphs (b)(1) through (17) of this

section are eligible for export, reexport,

or transfer (in-country) under this

section to and within Cuba and Russia.

* * * * *

(c) Eligible and ineligible end users—

(1) Organizations. (i) The license

exception in this section may be used to

export, reexport, or transfer (in-country)

eligible commodities and software to

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and for the use of independent non-

governmental organizations in Cuba or

Russia.

(ii) The Cuban Government, the

Cuban Communist Party, the Russian

Government, and organizations

administered or controlled by the Cuban

Government, the Cuban Communist

Party, or the Russian Government are

not eligible end users.

(iii) [Reserved]

(2) Individuals. The license exception

in this section may be used to export,

reexport or transfer (in-country) eligible

commodities and software to and for the

use of individuals other than the

following:

(i) Ineligible Cuban Government

officials. Ministers and Vice-Ministers;

members of the Council of State;

members of the Council of Ministers;

members and employees of the National

Assembly of People’s Power; members

of any provincial assembly; local sector

chiefs of the Committees for the Defense

of the Revolution; Director Generals and

sub-Director Generals and higher of all

Cuban ministries and state agencies;

employees of the Ministry of the Interior

(MININT); employees of the Ministry of

Defense (MINFAR); secretaries and first

secretaries of the Confederation of Labor

of Cuba (CTC) and its component

unions; chief editors, editors and deputy

editors of Cuban state-run media

organizations and programs, including

newspapers, television, and radio; or

members and employees of the Supreme

Court (Tribuno Supremo Nacional).

(ii) Ineligible Cuban Communist Party

officials. Members of the Politburo.

(iii) Ineligible Russian Government

officials. The President, Prime Minister,

and Deputy Prime Ministers; Federal

Ministers; Chairman, Deputy Chairman,

and Secretary of the Security Council;

members and employees of the Federal

Assembly (the State Duma and the

Federation Council); members and

employees of the Supreme Court and

the Constitutional Court; Chief and all

employees of the General Staff of the

armed forces; employees of the Ministry

of Defence; Director and employees of

the Federal Security Service, Director

and employees of the Foreign

Intelligence Service; employees of the

Ministry of the Interior; employees of

state committees, chief editors, editors

and deputy editors of Russian state-run

media organizations and programs,

including newspapers, television, and

radio; offices, services, agencies and

other entities organized under or

reporting to the federal government.

■9. Supplement no. 1 to part 740 is

amended by revising the entry for

‘‘Russia’’ and footnote 1 in the Country

Group D table to read as follows:

Supplement No. 1 to Part 740—Country

Groups

* * * * *

C

OUNTRY

G

ROUP

D

Country [D:1]

National

security

[D:2]

Nuclear

[D:3]

Chemical &

biological

[D:4] Missile

technology

[D:5]

U.S. arms

embargoed

countries

1

*******

Russia ................................................................................... X X X X X

*******

1

Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in

the Federal Register. The list of arms embargoed destinations in this table is drawn from 22 CFR 126.1 and State Department Federal Reg-

ister notices related to arms embargoes (compiled at www.pmddtc.state.gov/embargoed_countries/index.html) and will be amended when the

State Department publishes subsequent notices. If there are any discrepancies between the list of countries in this table and the countries identi-

fied by the State Department as subject to a U.S. arms embargo (in the Federal Register), the State Department’s list of countries subject to

U.S. arms embargoes shall be controlling.

* * * * *

PART 742—CONTROL POLICY—CCL

BASED CONTROLS

■10. The authority citation for 15 CFR

part 742 is revised to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.

3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201

et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L.

108–11, 117 Stat. 559; E.O. 12058, 43 FR

20947, 3 CFR, 1978 Comp., p. 179; E.O.

12851, 58 FR 33181, 3 CFR, 1993 Comp., p.

608; E.O. 12938, 59 FR 59099, 3 CFR, 1994

Comp., p. 950; E.O. 13026, 61 FR 58767, 3

CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR

44025, 3 CFR, 2001 Comp., p. 783;

Presidential Determination 2003–23, 68 FR

26459, 3 CFR, 2004 Comp., p. 320; Notice of

November 10, 2021, 86 FR 62891 (November

12, 2021).

■11. Section 742.2 is amended by

revising paragraph (b)(4) to read as

follows:

§ 742.2 Proliferation of chemical and

biological weapons.

* * * * *

(b) * * *

(4) License applications for items

described in paragraph (a) of this

section, when destined for the People’s

Republic of China will be reviewed in

accordance with the licensing policies

in both paragraph (b) of this section and

§ 742.4(b)(7). When such items are

destined to Russia, license applications

will be reviewed under a policy of

denial. However, exports and reexports

of items to Russia in support of U.S.-

Russia civil space cooperation activities

will be reviewed on a case-by-case basis,

as well as certain other certain specified

activities specified in § 746.8 of the

EAR. See § 746.8(b).

* * * * *

■12. Section 742.3 is amended by

revising paragraph (b)(4) to read as

follows:

§ 742.3 Nuclear nonproliferation.

* * * * *

(b) * * *

(4) License applications for items

described in paragraph (a) of this

section, when destined for the People’s

Republic of China will be reviewed in

accordance with the licensing policies

in both paragraph (b) of this section and

§ 742.4(b)(7). When such items are

destined to Russia, license applications

will be reviewed under a policy of

denial. However, exports and reexports

of items to Russia in support of U.S.-

Russia civil space cooperation activities

will be reviewed on a case-by-case basis.

See § 746.8(b) of the EAR.

* * * * *

■13. Section 742.4 is amended by

revising paragraph (b)(7)(i) and adding

paragraph (b)(9) to read as follows:

§ 742.4 National security.

* * * * *

(b) * * *

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(7)(i) For Burma, Cambodia, the

People’s Republic of China (China), and

Venezuela, all applications will be

reviewed to determine the risk of

diversion to a military end user or

military end use. There is a general

policy of approval for license

applications to export, reexport, or

transfer items determined to be for civil

end users for civil end uses. There is a

presumption of denial for license

applications to export reexport, or

transfer items that would make a

material contribution to the

‘‘development,’’ ‘‘production,’’

maintenance, repair, or operation of

weapons systems, subsystems, and

assemblies, such as, but not limited to,

those described in supplement no. 7 to

this part, of Burma, Cambodia, China, or

Venezuela.

* * * * *

(9) For the Russian Federation, all

applications will be reviewed in

accordance with the licensing policy set

forth in § 746.8(b) of the EAR.

* * * * *

■14. Section 742.5 is amended by

revising paragraph (b)(5) to read as

follows:

§ 742.5 Missile technology.

* * * * *

(b) * * *

(5) License applications for items

described in paragraph (a) of this

section, when destined for the People’s

Republic of China, will be reviewed in

accordance with the licensing policies

in both paragraph (b) of this section and

§ 742.4(b)(7). When such items are

destined to Russia, license applications

will be reviewed under a policy of

denial. However, exports and reexports

of items to Russia in support of U.S.-

Russia civil space cooperation activities

will be reviewed on a case-by-case basis.

See § 746.8(b).

* * * * *

■15. Section 742.6 is amended by

revising paragraph (b)(8) and adding

paragraph (b)(9) to read as follows:

§ 742.6 Regional stability.

* * * * *

(b) * * *

(8) China or Venezuela. Applications

to export or reexport items described in

paragraph (a)(7) of this section to China

or Venezuela will be reviewed on a

case-by-case basis to determine whether

the transaction is contrary to the

national security or foreign policy

interests of the United States, including

the foreign policy interest of promoting

the observance of human rights

throughout the world. Such applications

will also be reviewed consistent with

United States arms embargo policies in

§ 126.1 of the ITAR (22 CFR 126.1).

When destined to China, items

classified under any 9x515.y ECCN will

be subject to a policy of denial

consistent with paragraph (b)(1) of this

section.

(9) Russia. Applications to export or

reexport items described in paragraph

(a)(7) of this section will be reviewed

pursuant to the licensing policy set forth

in § 746.8(b) of the EAR, as well as the

foreign policy interest of promoting the

observance of human rights throughout

the world and consistent with United

States arms embargo policies in § 126.1

of the ITAR (22 CFR 126.1).

* * * * *

PART 744—END USE AND END USER

CONTROLS

■16. The authority citation for 15 CFR

part 744 continues to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.

3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201

et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR

20947, 3 CFR, 1978 Comp., p. 179; E.O.

12851, 58 FR 33181, 3 CFR, 1993 Comp., p.

608; E.O. 12938, 59 FR 59099, 3 CFR, 1994

Comp., p. 950; E.O. 13026, 61 FR 58767, 3

CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR

45167, 3 CFR, 1998 Comp., p. 208; E.O.

13222, 66 FR 44025, 3 CFR, 2001 Comp., p.

783; E.O. 13224, 66 FR 49079, 3 CFR, 2001

Comp., p. 786; Notice of September 15, 2021,

86 FR 52069 (September 17, 2021); Notice of

November 10, 2021, 86 FR 62891 (November

12, 2021).

■17. Section 744.21 is revised to read

as follows:

§ 744.21 Restrictions on certain ‘military

end use’ or ‘military end user’ in Burma,

Cambodia, the People’s Republic of China,

the Russian Federation, or Venezuela.

(a) General prohibition. In addition to

the license requirements for items

specified on the Commerce Control List

(CCL) (supplement no. 1 to this part),

you may not export, reexport, or transfer

(in-country) any item subject to the EAR

listed in supplement no. 2 to this part

to Burma, Cambodia, the People’s

Republic of China (China), or

Venezuela, or any item ‘‘subject to the

EAR’’ except for food or medicine

designated as EAR99, or ECCN 5A992.c

and 5D992.c unless for Russian

‘‘government end users’’ and Russian

state-owned enterprises (SoEs) to the

Russian Federation, without a license if,

at the time of the export, reexport, or

transfer (in-country), you have

‘‘knowledge,’’ as defined in § 772.1 of

the EAR, that the item is intended,

entirely or in part, for a ‘military end

use,’ as defined in paragraph (f) of this

section, or a ‘military end user,’ as

defined in paragraph (g) of this section,

in Burma, Cambodia, China, the Russian

Federation, or Venezuela.

(b) Additional prohibition on those

informed by BIS. BIS may inform you

either individually by specific notice,

through amendment to the EAR

published in the Federal Register, or

through a separate notification

published in the Federal Register, that

a license is required for specific exports,

reexports, or transfers (in-country) of

any item because there is an

unacceptable risk of use in or diversion

to a ‘military end use’ or ‘military end

user’ in Burma, Cambodia, China, the

Russian Federation, or Venezuela.

Specific notice will be given only by, or

at the direction of, the Deputy Assistant

Secretary for Export Administration.

When such notice is provided orally, it

will be followed by written notice

within two working days signed by the

Deputy Assistant Secretary for Export

Administration or the Deputy Assistant

Secretary’s designee. The absence of BIS

notification does not excuse the

exporter from compliance with the

license requirements of paragraph (a) of

this section.

(1) ‘Military End-User’ (MEU) List and

Entity List. BIS may inform and provide

notice to the public that certain entities

are subject to the additional prohibition

described under this paragraph (b)

following a determination by the End-

User Review Committee (ERC) that a

specific entity is a ‘military end user’

pursuant to this section and therefore

any exports, reexports, or transfers (in-

country) to that entity represent an

unacceptable risk of use in or diversion

to a ‘military end use’ or ‘military end

user’ in Burma, Cambodia, China, the

Russian Federation or Venezuela. Such

entities in Burma, Cambodia, China, or

Venezuela may be added to supplement

no. 7 to this part—‘Military End-User’

(MEU) List. Such entities in the Russian

Federation may be added to supplement

No. 4 to this part—Entity List. License

requirements for listed MEU are

described in paragraph (b)(1)(ii) of this

section. The listing of entities under

supplement no. 7 or 4 to this part is not

an exhaustive listing of ‘military end

users’ for purposes of this section.

Exporters, reexporters, and transferors

are responsible for determining whether

transactions with entities not listed on

supplement no. 7 or 4 to this part are

subject to a license requirement under

paragraph (a) of this section. The

process in this paragraph (b)(1) for

placing entities on the MEU List and

Entity List is only one method BIS may

use to inform exporters, reexporters, and

transferors of license requirements

under this section.

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(i) End-User Review Committee (ERC).

The End-User Review Committee (ERC),

composed of representatives of the

Departments of Commerce (Chair),

State, Defense, Energy and, where

appropriate, the Treasury, makes all

decisions regarding additions to,

removals from, or other modifications to

the MEU List and Entity List. Decisions

by the ERC for purposes of the MEU List

and Entity List will be made following

the procedures identified in this section

and in supplement no. 5 to this part—

Procedures for End-User Review

Committee Entity List and ‘Military End

User’ (MEU) List Decisions.

(ii) License requirement for parties to

the transaction. Consistent with

paragraph (a) of this section, a license is

required for the export, reexport, or

transfer (in-country) of any item subject

to the EAR listed in supplement no. 2

to this part when an entity that is listed

on the MEU List under Burma,

Cambodia, the People’s Republic of

China (China), or Venezuela is a party

to the transaction as described in

§ 748.5(c) through (f) of the EAR.

Consistent with paragraph (a) of this

section, a license is required for the

export, reexport, or transfer (in-country)

of any item subject to the EAR except

for food or medicine designated as

EAR99, or ECCN 5A992.c and 5D992.c

unless for Russian ‘‘government end

users’’ and Russian state-owned

enterprises (SoEs) to Russia when an

entity that is listed on the Entity List

under Russia pursuant to this section is

a party to the transaction as described

in § 748.5(c) through (f) of the EAR.

(2) Requests for removal from or

modification of ‘Military End User’

(MEU) List and Entity List. Any entity

listed on the MEU List or Entity List

pursuant to this section may request

that its listing be removed or modified.

All such requests, including reasons

therefor, must be in writing and sent to:

Chair, End-User Review Committee,

Bureau of Industry and Security, U.S.

Department of Commerce, 14th Street

and Pennsylvania Avenue NW, Room

3886, Washington, DC 20230; or by

email at ERC@bis.doc.gov. In order for

an entity listed on the MEU List or the

Entity List pursuant to this section to

petition BIS for their removal or

modification, as applicable, the entity

must address why the entity is not a

‘military end user’ for purposes of this

section.

(i) Review. The ERC will review such

requests for removal or modification in

accordance with the procedures set

forth in supplement no. 5 to this part.

(ii) BIS action. The Deputy Assistant

Secretary for Export Administration will

convey the decision on the request to

the requester in writing. That decision

will be the final agency action on the

request.

(c) License exception. Despite the

prohibitions described in paragraphs (a)

and (b) of this section, you may export,

reexport, or transfer (in-country) items

subject to the EAR under the provisions

of License Exception GOV set forth in

§ 740.11(b)(2)(i) and (ii) of the EAR.

(d) License application procedure.

When submitting a license application

pursuant to this section, you must state

in the ‘‘additional information’’ block of

the application that ‘‘this application is

submitted because of the license

requirement in this section (Restrictions

on a ’Military End Use’ or ‘Military End

User’ in Burma, Cambodia, the People’s

Republic of China, the Russian

Federation, or Venezuela).’’ In addition,

either in the additional information

block of the application or in an

attachment to the application, you must

include all known information

concerning the ‘military end use’ and

‘military end user(s)’ of the item(s). If

you submit an attachment with your

license application, you must reference

the attachment in the ‘‘additional

information’’ block of the application.

(e) License review standards. (1)

Applications to export, reexport, or

transfer (in-country) items to or within

Burma, Cambodia, the People’s

Republic of China (China), or Venezuela

described in paragraph (a) of this

section will be reviewed with a

presumption of denial. Applications to

export, reexport, or transfer (in-country)

items to or within Russia described in

paragraph (a) of this section will be

reviewed with a policy of denial.

(2) Applications may be reviewed

under chemical and biological weapons,

nuclear nonproliferation, or missile

technology review policies, as set forth

in §§ 742.2(b)(4), 742.3(b)(4), and

742.5(b)(4) of the EAR, if the end use

may involve certain proliferation

activities.

(3) Applications for items requiring a

license for any reason that are destined

to Burma, Cambodia, China, the Russian

Federation, or Venezuela for a ‘military

end use’ or ‘military end user’ also will

be subject to the review policy stated in

paragraph (e)(1) of this section.

(f) Military end use. In this section,

’military end use’ means: Incorporation

into a military item described on the

U.S. Munitions List (USML) (22 CFR

part 121, International Traffic in Arms

Regulations); incorporation into items

classified under Export Control

Classification Numbers (ECCNs) ending

in ‘‘A018’’ or under ‘‘600 series’’ ECCNs;

or any item that supports or contributes

to the operation, installation,

maintenance, repair, overhaul,

refurbishing, ‘‘development,’’ or

‘‘production,’’ of military items

described on the USML, or items

classified under ECCNs ending in

‘‘A018’’ or under ‘‘600 series’’ ECCNs.

(g) Military end user. In this section,

the term ‘military end user’ means the

national armed services (army, navy,

marine, air force, or coast guard), as well

as the national guard and national

police, government intelligence or

reconnaissance organizations (excluding

those described in § 744.22(f)(2)), or any

person or entity whose actions or

functions are intended to support

‘military end uses’ as defined in

paragraph (f) of this section.

(h) Effects on contracts. Transactions

involving the export, reexport, or

transfer (in country) of items to or

within Venezuela are not subject to the

provisions of this section if the contracts

for such transactions were signed prior

to November 7, 2014.

■18. Supplement No. 4 to part 744 is

amended:

■a. Under Russia:

■i. By adding in alphabetical order

entries for ‘‘Admiralty Shipyard JSC;’’

‘‘Aleksandrov Scientific Research

Technological Institute NITI;’’ ‘‘Argut

OOO;’’ ‘‘Communication Center of the

Ministry of Defence;’’ ‘‘Federal Research

Center Boreskov Institute of Catalysis;’’

■ii. By revising the entry for ‘‘Federal

Security Service (FSB);’’

■iii. By adding in alphabetical order

entries for ‘‘Federal State Budgetary

Enterprise of the Administration of the

President of Russia;’’ ’’ Federal State

Budgetary Enterprise Special Flight Unit

Rossiya of the Administration of the

President of Russia;’’ ‘‘Federal State

Unitary Enterprise Dukhov Automatics

Research Institute (VNIIA);’’ ‘‘Foreign

Intelligence Service (SVR);’’ ‘‘Forensic

Center of Nizhniy Novgorod Region

Main Directorate of the Ministry of

Interior Affairs;’’ ‘‘International Center

for Quantum Optics and Quantum

Technologies LLC;’’ ‘‘Irkut

Corporation;’’ ‘‘Irkut Research and

Production Corporation Public Joint

Stock Company;’’ ‘‘Joint Stock Company

Scientific Research Institute of

Computing Machinery;’’ ‘‘JSC Central

Research Institute of Machine Building

(JSC TsNIIMash);’’ ‘‘JSC Kazan

Helicopter Plant Repair Service;’’ ‘‘JSC

Rocket and Space Centre—Progress;’’

‘‘Kamensk-Uralsky Metallurgical Works

J.S. Co.;’’ ‘‘Kazan Helicopter Plant

PJSC;’’ ‘‘Komsomolsk-na-Amur Aviation

Production Organization (KNAAPO);’’

■iv. By revising the entry for ‘‘Main

Intelligence Directorate;’’ and

■v. By adding in alphabetical order

entries for ‘‘Ministry of Defence of the

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Russian Federation;’’ ‘‘Moscow Institute

of Physics and Technology;’’ ‘‘NPO High

Precision Systems JSC;’’ ‘‘NPO Splav

JSC;’’ ‘‘Oboronprom OJSC;’’ ‘‘PJSC

Beriev Aircraft Company;’’ ‘‘PJSC Irkut

Corporation;’’ ‘‘PJSC Kazan

Helicopters;’’ ‘‘POLYUS Research

Institute of M.F. Stelmakh Joint Stock

Company;’’ ‘‘Promtech-Dubna, JSC;’’

‘‘Public Joint Stock Company United

Aircraft Corporation;’’ ‘‘Radiotechnical

and Information Systems (RTI)

Concern;’’ ‘‘Rapart Services LLC;’’

‘‘Rosoboronexport OJSC (ROE);’’

‘‘Rostec (Russian Technologies State

Corporation);’’ ‘‘Rostekh—Azimuth;’’

‘‘Russian Aircraft Corporation MiG;’’

‘‘Russian Helicopters JSC;’’ ‘‘SP Kvant;’’

‘‘Sukhoi Aviation JSC;’’ ‘‘Sukhoi Civil

Aircraft;’’ ‘‘Tactical Missiles

Corporation JSC;’’ ‘‘Tupolev JSC;’’

‘‘UEC-Saturn;’’ ‘‘United Aircraft

Corporation;’’ ‘‘United Engine

Corporation;’’ and ‘‘United Instrument

Manufacturing Corporation’’; and

■b. By adding footnote 3.

The additions read as follows:

Supplement No. 4 to Part 744—Entity

List

* * * * *

Country Entity License

requirement License

review policy Federal Register

citation

*******

RUSSIA ............ ******

Admiralty Shipyard JSC, 203, Fontanka

Emb., 190121, St. Peterburg, Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Aleksandrov Scientific Research Tech-

nological Institute NITI, Koporskoe

Highway, House 72, Sosnovy Bor,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Argut OOO, 6 Mnevniki str end 6 fl,

Moscow 123308, Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Communication Center of the Ministry

of Defence, Bolshoi Znamenskiy per.

21, Moscow, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Federal Research Center Boreskov In-

stitute of Catalysis, pr. Lavrentieva 5,

Novosibirsk 630090, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

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requirement License

review policy Federal Register

citation

Federal Security Service (FSB), a.k.a.,

the following one alias:

—Federalnaya Sluzhba Bezopasnosti.

Ulitsa Kuznetskiy Most, Dom 22, Mos-

cow 107031, Russia;

and Lubyanskaya Ploschad, Dom 2,

Moscow 107031, Russia.

All items subject to the

EAR, apart from items

that are related to trans-

actions that are author-

ized by the Department

of the Treasury’s Office

of Foreign Assets Con-

trol pursuant to General

License No. 1B of

March 2, 2021 and ex-

cept for food or medi-

cine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Presumption of denial ...... 82 FR 724, 1/4/17. 82 FR

18219, 4/18/17. 86 FR

37903, 7/19/21. 87 FR

[INSERT FR PAGE

NUMBER], 3/3/2022.

******

Federal State Budgetary Enterprise of

the Administration of the President of

Russia, 1-ya Reysovaya Street, 1,

Moscow 119027, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022].

Federal State Budgetary Enterprise

Special Flight Unit Rossiya of the Ad-

ministration of the President of Rus-

sia, 1-ya Reysovaya Street, 1, Mos-

cow 119027, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Federal State Unitary Enterprise

Dukhov Automatics Research Insti-

tute (VNIIA), 22, Sushchevskaya UI,

Moscow 127055RU.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Foreign Intelligence Service (SVR),

Yasenevo 11 Kolpachny, Moscow,

0101000.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Forensic Center of Nizhniy Novgorod

Region Main Directorate of the Min-

istry of Interior Affairs, Gorkiy Street,

71, Nizhniy Novgorod 603950, Rus-

sia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

International Center for Quantum Op-

tics and Quantum Technologies LLC,

a.k.a. the following two aliases:

—Russian Quantum Center and

—RQC.

Business-center ‘‘Ural,’’ 100 Novaya

Street, Skolkovo, Moscow, 143025,

Russia; and

30 Bolshoy Blvd., Bldg. 1, Moscow,

121205, Russia; and

100A Novaya Street, Skolkovo,

Odintsovsky District, Moscow,

143025, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

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requirement License

review policy Federal Register

citation

Irkut Corporation, Leningradsky Pros-

pect 68, Moscow 125315, Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Irkut Research and Production Cor-

poration Public Joint Stock Company,

68 Leningradsky Prospect, Moscow

125315, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Joint Stock Company Scientific Re-

search Institute of Computing Ma-

chinery, Melnichnaya Street, 31,

Kirov 610025, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

JSC Central Research Institute of Ma-

chine Building (JSC TsNIIMash),

Pionerskaya Street, 4, korpus 22,

Moskovskaya obl., Korolov 141070,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

This license require-

ment may be overcome

by License Exception

GOV under

§ 740.11(b)(2) and (e)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

JSC Kazan Helicopter Plant Repair

Service, a.k.a., the following two

aliases:

—Kazanski Vertoletny Zavod

Remservis; and

—KVZ Remservis.

Ulitsa Tetsevskaya 14, Kazan, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

JSC Rocket and Space Centre—

Progress, Zemetsa Street 18,

Samarskaya Oblast, Samara 443009,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

This license require-

ment may be overcome

by License Exception

GOV under

§ 740.11(b)(2) and (e)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

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review policy Federal Register

citation

Kamensk-Uralsky Metallurgical Works

J.S. Co., 5 Zavodskaya St., Kamensk

Uralsky, 623405 Sverdlovsk region,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Kazan Helicopter Plant PJSC,

Tetsevskaya St, Kazan 420085, Rus-

sia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Komsomolsk-na-Amur Aviation Produc-

tion Organization (KNAAPO), 1

Sovetskaya Street, Komsomolsk-on-

Amur, Khabarovsky Krai, Russia

618018.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Main Intelligence Directorate, a.k.a., the

following three aliases

—Glavnoe Razvedyvatel’noe

Upravlenie;

—GRU; and

—Main Intelligence Department.

Khoroshevskoye Shosse 76, Khodinka,

Moscow, Russia; and Ministry of

Defence of the Russian Federation,

Frunzenskaya nab., 22/2, Moscow

119160, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Presumption of denial ...... 82 FR 724, 1/4/17. 87 FR

[INSERT FR PAGE

NUMBER], 3/3/2022.

******

Ministry of Defence of the Russian

Federation, including the Armed

Forces of Russia and all operating

units wherever located. This includes

the national armed services (army,

navy, marine, air force, or coast

guard), as well as the national guard

and national police, government intel-

ligence or reconnaissance organiza-

tions of the Russian Federation. All

address located in Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

The license require-

ments under this entry

also extend to any ex-

port, reexport and trans-

fer (in-country) to the

entity wherever located

worldwide.

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Moscow Institute of Physics and Tech-

nology, a.k.a., the following two

aliases:

—MIPT; and

—MFTI.

Dolgoprudny Campus: 9 Institutskiy

per., Dolgoprudny, Moscow Region

141701, Russia; and

Zhukovsky Campus: Ulitsa Gagarina

16, Zhukovsky, Moscow Region

140180, Russia; and

Moscow Campus 1 Stroyeniye 1,

Klimentovsky Pereulok, Moscow Re-

gion 115184, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

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citation

NPO High Precision Systems JSC,

Kievskaya Street 7, Moscow, Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

NPO Splav JSC, 33 ul. Shcheglov

Kaya Zaseka Tula, 300004 Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Oboronprom OJSC, 29/141 Vereiskaya

Street, Moscow, 121357 Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

PJSC Beriev Aircraft Company, 1

Aviatorov Square, Taganrog 347923,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

PJSC Irkut Corporation, Regional Air-

craft 26 Leninskaya Sloboda, Mos-

cow 115280, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

PJSC Kazan Helicopters, Tetsevskaya

Street, 14, Kazan, Tatarstan Repub-

lic 420085, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

POLYUS Research Institute of M.F.

Stelmakh Joint Stock Company,

Building 1, 3 Vvedenskogo Street,

Moscow, 117342, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial.

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Promtech-Dubna, JSC, Programmistov

St., 4, Room 364, Dubna, Moscow

141983, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

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******

Public Joint Stock Company United Air-

craft Corporation, Bolshaya

Pionerskaya, Moscow 115054, Rus-

sia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Radiotechnical and Information Sys-

tems (RTI) Concern, 127083, Mos-

cow, 8 marta, 10/1 Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Rapart Services LLC, Aeroportovskaya

Str. 6/2, Solnechnogorskiy Region,

Dubrobki 141580, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Rosoboronexport OJSC (ROE), Strada

Strominka 27, Moscow, 107076 Rus-

sia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Rostec (Russian Technologies State

Corporation), 24 Usacheva Street,

Moscow, Russia 119048.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Rostekh—Azimuth, Building 2, 5 Suite

X, Room 15, Floor 2, Narishkinskaya

Alleya, Moscow 125167, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Russian Aircraft Corporation MiG,

Leningradskoe Highway, 6, Building

1, Moscow, 125171, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Russian Helicopters JSC, Bolshaya

Pionerskaya, 1, Moscow, 123610,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

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citation

SP Kvant, a.k.a., the follow three

aliases:

—Kvant LLC;

—Limited Liability Company Joint Ven-

ture Quantum Technologies; and

—Joint Venture Quantum.

D. 46, Etazh 6, pom. 600K, Shosse

Varshavskoe, Moscow, 115230, Rus-

sia.

All items subject to the

EAR except for food or

medicine designated as

EAR99, or ECCN

5A992.c and 5D992.c

unless for Russian

‘‘government end

users’’ and Russian

state-owned enterprises

(SoEs) to Russia. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Sukhoi Aviation JSC, Polikarpov Str.,

23B, Moscow, 125284, Russia. All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

Sukhoi Civil Aircraft, 1 Sovetskaya

Street, Komsomolsk-On-Amur

681018, Russia; and 15 Tupoleva

Street, OP JSC SCA, Zukhovskiy

140180, Russia; and 23b Bld. 2

Polikarpova St., Moscow 125824,

Russia; and

26, Bld. 5, Leninskaya Sloboda Street,

Moscow, 115280, Russia; and

Antonova Avenue 1, Ulianovsk 432072,

Russia; and

Leningradskaya Street 80/4A,

Komsomolsk-On-Amur 681007, Rus-

sia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Tactical Missiles Corporation JSC,

KorolevIlyicha Street, 7, 141080,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

Tupolev JSC, Academician Tupolev

Embankment 17, Moscow, 105005,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

UEC-Saturn, 163 Lenin Avenue,

Rybinsk 152903, Yavoslavl Region,

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

United Aircraft Corporation, Bolshaya

Pionerskaya Str., 1, Moscow,

115054, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

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United Engine Corporation, 16,

Budyonny Avenue, Moscow, 105118

Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

United Instrument Manufacturing Cor-

poration, Vereiskaya 29, str. 141,

Moscow, Russia.

All items subject to the

EAR except for food or

medicine designated as

EAR99. (See

§§ 734.9(g),

3

746.8(a)(3), and

744.21(b) of the EAR)

Policy of denial. See

§§ 746.8(b) and

744.21(e).

87 FR [INSERT FR PAGE

NUMBER], 3/3/2022.

******

*******

3

For this entity, ‘‘items subject to the EAR’’ includes foreign-produced items that are subject to the EAR under § 734.9(g) of the EAR. See

§§ 746.8 and 744.21 of the EAR for related license requirements, license review policy, and restrictions on license exceptions.

Supplement No. 7 to Part 744

[Amended]

■19. Supplement No. 7 to part 744 is

amended by removing RUSSIA and all

the Russian entries.

PART 746—EMBARGOES AND OTHER

SPECIAL CONTROLS

■20. The authority citation for 15 CFR

part 746 is revised to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.

287c; Sec 1503, Pub. L. 108–11, 117 Stat. 559;

22 U.S.C. 2151 note; 22 U.S.C. 6004; 22

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.

12854, 58 FR 36587, 3 CFR, 1993 Comp., p.

614; E.O. 12918, 59 FR 28205, 3 CFR, 1994

Comp., p. 899; E.O. 13222, 66 FR 44025, 3

CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR

26751, 3 CFR, 2004 Comp., p 168;

Presidential Determination 2003–23, 68 FR

26459, 3 CFR, 2004 Comp., p. 320;

Presidential Determination 2007–7, 72 FR

1899, 3 CFR, 2006 Comp., p. 325; Notice of

May 6, 2021, 86 FR 26793 (May 10, 2021).

■21. Section 746.5 is amended by

revising paragraph (a)(1) to read as

follows:

§ 746.5 Russian industry sector sanctions.

(a) * * *

(1) General prohibition. (i) A license

is required to export, reexport or

transfer (in-country) any item subject to

the Export Administration Regulations

(EAR) listed in supplement No. 2 to this

part and items specified in ECCNs

0A998, 1C992, 3A229, 3A231, 3A232,

6A991, 8A992, and 8D999 when you

know that the item will be used directly

or indirectly in exploration for, or

production of, oil or gas in Russian

deepwater (greater than 500 feet) or

Arctic offshore locations or shale

formations in Russia, or are unable to

determine whether the item will be used

in such projects. Such items include,

but are not limited to, drilling rigs, parts

for horizontal drilling, drilling and

completion equipment, subsea

processing equipment, Arctic-capable

marine equipment, wireline and down

hole motors and equipment, drill pipe

and casing, software for hydraulic

fracturing, high pressure pumps,

seismic acquisition equipment, remotely

operated vehicles, compressors,

expanders, valves, and risers.

(ii) You should be aware that other

provisions of the EAR, including parts

742 and 744 and § 746.8, also apply to

exports and reexports to Russia. License

applications submitted to BIS under this

section may include the phrase ‘‘section

746.5’’ or in Block 9 (Special Purpose)

as described in Supplement No. 1 to

part 748 of the EAR.

* * * * *

■22. Section 746.6 is revised to read as

follows:

§ 746.6 Crimea Region of Ukraine and

Covered Regions of Ukraine.

(a) License requirements—(1) General

prohibition—Crimea. A license is

required to export or reexport to or

transfer within the Crimea region of

Ukraine any item subject to the EAR

other than food and medicine

designated as EAR99, or ‘software

necessary to enable the exchange of

personal communications over the

internet’.

(2) General prohibition—Donetsk

People’s Republic (DNR) and Luhansk

People’s Republic (LNR). A license is

required to export or reexport to, or

transfer within, the so-called DNR or

LNR regions of Ukraine any item subject

to the EAR other than: Food and

medicine designated as EAR99, or

‘software necessary to enable the

exchange of personal communications

over the internet’.

(3) Deemed exports or reexports. For

purposes of applying the EAR deemed

export and deemed reexport

requirements pursuant to the general

prohibitions described in this paragraph

(a)(3), the nationality of the foreign

national (as determined by accepted

methods, such as looking to the passport

or other nationality document(s)

recognized by the United States

Government) is what is used for

purposes of determining whether a

license is required for a deemed export

or deemed reexport.

(b) License review policy.

Applications will be reviewed with a

policy of denial, except for applications

for transactions authorized under OFAC

Ukraine-Related General Licenses,

which will be reviewed on a case-by-

case basis.

(c) License exceptions. You may

export, reexport or transfer (in-country)

without a license if your transaction

meets all the applicable terms and

conditions of any of the license

exception paragraphs specified in this

paragraph (c). To determine scope and

eligibility requirements, you will need

to refer to the sections or specific

paragraphs of part 740 (License

Exceptions) of the EAR, as well as

§ 740.2 license exception restrictions.

Read each license exception carefully,

as the provisions available for countries

subject to sanctions are generally

narrow.

(1) TMP for items for use by the news

media as set forth in § 740.9(a)(9) of the

EAR.

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(2) GOV for items for personal or

official use by personnel and agencies of

the U.S. Government, the International

Atomic Energy Agency (IAEA), or the

European Atomic Energy Community

(Euratom) as set forth in § 740.11(a) and

(b)(2) of the EAR.

(3) GFT for gift parcels and

humanitarian donations as set forth in

§ 740.12 of the EAR.

(4) TSU for operation technology and

software for lawfully exported

commodities as set forth in § 740.13(a)

and sales technology as set forth in

§ 740.13 (b) of the EAR.

(5) BAG for exports of items by

individuals leaving the United States as

personal baggage as set forth in

§ 740.14(a) through (d) of the EAR.

(6) AVS for civil aircraft and vessels

as set forth in § 740.15(a)(4) and (d) of

the EAR.

(d) Definitions. For purpose of this

section, use the following definitions of

terms:

(1) ‘Crimea region of Ukraine’

includes the land territory in that region

as well as any maritime area over which

sovereignty, sovereign rights, or

jurisdiction is claimed based on

occupation of that land territory.

(2) ‘Donetsk People’s Republic (DNR)

region’ or ‘Luhansk People’s Republic

(LNR) region’ include the land territory

in those regions as well as any maritime

area over which sovereignty, sovereign

rights, or jurisdiction is claimed based

on purported sovereignty over that land

territory or area.

(3) ‘Software necessary to enable the

exchange of personal communications

over the internet’ includes only software

(such as software for instant messaging,

chat and email, social networking,

sharing of photos and movies, Web

browsing, and blogging), designated

EAR99 or classified as mass market

software under Export Control

Classification Number (ECCN) 5D992.c

of the EAR, provided that such software

is widely available to the public at no

cost to the user.

■23. Section 746.8 is added to read as

follows:

§ 746.8 Sanctions against Russia.

(a) License requirements—(1) Items

classified in any ECCN in CCL

Categories 3 to 9. In addition to license

requirements specified on the

Commerce Control List (CCL) in

Supplement No. 1 to part 774 of the

EAR and in other provisions of the EAR,

including part 744 and § 746.5, a license

is required, excluding deemed exports

and deemed reexports, to export,

reexport, or transfer (in-country) to or

within Russia any item subject to the

EAR and specified in any Export

Control Classification Number (ECCN)

in Categories 3, 4, 5, 6, 7, 8, or 9 of the

CCL.

(2) Foreign-produced ‘‘direct product’’

items subject to the EAR under Russia

foreign ‘‘direct product’’ (FDP) rule.

Except as described in paragraph (a)(4)

of this section, a license is required to

reexport, export from abroad, or transfer

(in-country) to any destination any

foreign-produced item subject to the

EAR under the Russia FDP Rule

described in § 734.9(f) of the EAR.

(3) Foreign-produced ‘‘direct product’’

items subject to the EAR under Russia-

Military End User FDP rule. Except as

described in paragraph (a)(4) of this

section, a license is required to reexport,

export from abroad, or transfer (in-

country) to or within any destination

any foreign-produced item subject to the

EAR under § 734.9(g) of the EAR other

than food or medicine designated as

EAR99, or ECCN 5A992.c and 5D992.c

unless for Russian ‘‘government end

users’’ and Russian state-owned

enterprises (SoEs).

(4) Exclusion from license

requirements under paragraphs (a)(2)

and (3) of this section. The countries

listed in supplement No. 3 to this part

have committed to implementing

substantially similar export controls on

Russia under their domestic laws.

Therefore, exports or reexports from the

countries described in this supplement

No. 3 to this part or transfers (in-

country) within the countries described

in this supplement are not subject to the

license requirements described in

paragraphs (a)(2) and (3) of this section,

unless a limit to the exclusion is

described in the Scope column in

supplement No. 3 to this part.

(5) Exclusion from scope of U.S.-

origin controlled content under

paragraph (a)(1) of this section. For

purposes of determining U.S.-origin

controlled content under supplement

No. 2 to part 734 of the EAR, paragraph

(a)(1) of this section when making a de

minimis calculation for reexports and

exports from abroad to Russia, the

license requirements in paragraph (a)(1)

of this section are not used to determine

controlled U.S.-origin content in a

foreign-made item, provided the criteria

in paragraphs (a)(5)(i) and (ii) of this

section are met:

(i) The U.S.-origin content is

described in an Anti-Terrorism (AT)-

only ECCN and is not otherwise

excluded from the applicable Scope

column in supplement No. 3 to this

part. For purposes of this paragraph

(a)(5), AT-only items means any ECCN

that only specifies either only AT in the

reason for control paragraph of the

ECCN or is classified under ECCN

9A991; and

(ii) The foreign made item will be

reexported or exported from abroad

from a country described in supplement

No. 3 to this part.

Note 1 to paragraph (a). A ‘military end

user’ for purposes of paragraph (a)(3) and (4)

of this section is any entity listed on the

Entity List in supplement No. 4 to part 744

of the EAR under Russia with a footnote 3

designation.

(b) Licensing policy. With limited

exceptions, applications for the export,

reexport or transfer (in-country) of any

item that requires a license for export or

reexport to or transfer pursuant to the

requirements of this section will be

reviewed with a policy of denial. The

following types of license applications

for licenses required under paragraphs

(a)(1) and (2) of this section will be

reviewed on a case-by-case basis to

determine whether the transaction in

question would benefit the Russian

government or defense sector:

Applications related to safety of flight;

applications related to maritime safety;

applications to meet humanitarian

needs; applications that support

government space cooperation;

applications for items destined to

wholly-owned U.S. subsidiaries, foreign

subsidiaries of U.S. companies that are

joint ventures with other U.S.

companies, joint ventures of U.S.

companies with companies

headquartered in countries from

Country Group A:5 and A:6 in

supplement no. 1 to part 740 of the EAR

countries, the wholly-owned

subsidiaries of companies

headquartered in countries from

Country Group A:5 and A:6 in

supplement no. 1 to part 740, joint

ventures of companies headquartered in

Country Groups A:5 and A:6 with other

companies headquartered in Country

Groups A:5 and A:6; applications for

companies headquartered in Country

Groups A:5 and A:6 to support civil

telecommunications infrastructure; and

government-to-government activities.

License applications required under

paragraph (a)(3) of this section will be

reviewed under a policy of denial in all

cases.

(c) License exceptions. No license

exceptions may overcome the license

requirements in paragraph (a)(3) of this

section, except as specified in the Entity

List entry for a Footnote 3 entity on the

Entity List in supplement no. 4 to part

744 of the EAR. No license exceptions

may overcome the license requirements

in paragraphs (a)(1) and (2) of this

section except the following license

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exceptions identified in paragraphs

(c)(1) through (7) of this section.

(1) License Exception TMP for items

for use by the news media as set forth

in § 740.9(a)(9) of the EAR.

(2) License Exception GOV

(§ 740.11(b) of the EAR).

(3) License Exception TSU for

software updates for civil end-users that

are wholly-owned U.S. subsidiaries,

foreign subsidiaries of U.S. companies

that are joint ventures with other U.S.

and companies, joint ventures of U.S.

companies with companies

headquartered in countries from

Country Group A:5 and A:6 in

supplement no. 1 to part 740 of the EAR

countries, the wholly-owned

subsidiaries of companies

headquartered in countries from

Country Group A:5 and A:6 in

supplement no. 1 to part 740, or joint

ventures of companies headquartered in

Country Group A:5 and A:6 with other

companies headquartered in Country

Groups A:5 and A:6 (§ 740.13(c) of the

EAR).

(4) License Exception BAG, excluding

firearms and ammunition (§ 740.14,

excluding paragraph (e), of the EAR).

(5) License Exception AVS

(§ 740.15(a) and (b) of the EAR).

(6) License Exception ENC excluding

Russian ‘‘government end users’’ and

Russian state-owned enterprises (SoEs)

(§ 740.17 of the EAR).

(7) License Exception CCD (§ 740.19

of the EAR).

■24. Supplement No. 2 to part 746 is

amended by revising the introductory

text of the supplement to read as

follows:

Supplement No. 2 to Part 746—Russian

Industry Sector Sanction List

The source for the Schedule B numbers

and descriptions in this list comes from the

Bureau of the Census’s Schedule B

concordance of exports 2022. Census’s

Schedule B List 2022 can be found at

www.census.gov/foreign-trade/aes/

documentlibrary/#concordance. The

Introduction Chapter of the Schedule B

provides important information about

classifying products and interpretations of

the Schedule B, e.g., NESOI means Not

Elsewhere Specified or Included. In addition,

important information about products within

a particular chapter may be found at the

beginning of chapters.

* * * * *

■25. Add Supplement No. 3 to part 746

to read as follows:

Supplement No. 3 to Part 746—

Countries Excluded From Certain

License Requirements of § 746.8

Countries listed in this supplement No. 3

have committed to implementing

substantially similar export controls on

Russia under their domestic laws and are

consequently excluded from certain

requirements in § 746.8 of the EAR, as

described in § 746.8(a)(4) and (5). The Scope

column of the following table identifies

whether the country receives a full or partial

exclusion. For countries with partial

exclusions, the items for which such

exclusions apply are listed in the Scope

column.

Country Scope Federal Register citation

Australia ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Austria .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Belgium ......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Bulgaria ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Canada ......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Croatia .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Cyprus .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Czech Republic ............................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Denmark ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Estonia .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Finland .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

France .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Germany ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Greece .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Hungary ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Ireland ........................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Italy ............................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Japan ............................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Latvia ............................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Lithuania ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Luxembourg .................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Malta ............................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Netherlands .................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

New Zealand ................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Poland .......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Portugal ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Romania ....................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Slovakia ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Slovenia ........................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Spain ............................................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

Sweden ......................................................... Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

United Kingdom ............................................ Full ............................................................... 87 FR [INSERT FR PAGE NUMBER], 3/3/2022.

PART 772—[AMENDED]

■26. The authority citation for 15 CFR

part 772 continues to read as follows:

Authority: 50 U.S.C. 4801–4852; 50 U.S.C.

4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.

13222, 66 FR 44025, 3 CFR, 2001 Comp., p.

783.

■27. Section 772.1 is amended by

revising the definition of ‘‘Food’’ to read

as follows:

§ 772.1 Definitions of terms as used in the

Export Administration Regulations (EAR).

* * * * *

Food. Specific to exports and

reexports to North Korea, Syria, Crimea

region of Ukraine, and the so-called

Donetsk People’s Republic and Luhansk

People’s Republic regions of Ukraine,

food means items that are consumed by

and provide nutrition to humans and

animals, and seeds, with the exception

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12251

Federal Register / Vol. 87, No. 42 / Thursday, March 3, 2022 / Rules and Regulations

of castor bean seeds, that germinate into

items that will be consumed by and

provide nutrition to humans and

animals. (Food does not include

alcoholic beverages.)

* * * * *

Thea D. Rozman Kendler,

Assistant Secretary for Export

Administration.

[FR Doc. 2022–04300 Filed 2–24–22; 3:10 pm]

BILLING CODE 3510–33–P

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Published date	03 March 2022
Citation	87 FR 12226
Record Number	2022-04300
Section	Rules and Regulations
Court	Industry And Security Bureau

Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR)

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