Publication of Russian Harmful Foreign Activities Sanctions Regulations Determination
| Published date | 18 July 2024 |
| Record Number | 2024-15709 |
| Citation | 89 FR 58286 |
| Court | Foreign Assets Control Office |
| Section | Rules and Regulations |
Federal Register, Volume 89 Issue 138 (Thursday, July 18, 2024)
[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Rules and Regulations]
[Pages 58286-58287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15709]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 587
Publication of Russian Harmful Foreign Activities Sanctions
Regulations Determination
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Publication of a determination.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing a services determination issued pursuant
to an April 6, 2022 Executive Order. The determination was previously
issued on OFAC's website.
DATES: The determination was issued on June 12, 2024. See SUPPLEMENTARY
INFORMATION for additional relevant dates.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Compliance, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: https://ofac.treasury.gov.
Background
On April 6, 2022, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) (IEEPA), issued Executive Order (E.O.) 14071 of April 6, 2022,
``Prohibiting New Investment in and Certain Services to the Russian
Federation in Response to Continued Russian Federation Aggression'' (87
FR 20999, April 8, 2022). Among other prohibitions, section 1(a)(ii) of
E.O. 14071 prohibits the exportation, reexportation, sale, or supply,
directly or indirectly, from the United States, or by a United States
person, wherever located, of any category of services as may be
determined by the Secretary of the Treasury, in consultation with the
Secretary of State, to any person located in the Russian Federation.
On June 12, 2024, pursuant to delegated authority, the Director of
OFAC, in consultation with the Department of State, issued
``Determination Pursuant to Section 1(a)(ii) of Executive Order
14071,'' which determined that the prohibitions in section 1(a)(ii) of
E.O. 14071 shall apply to the following categories of services:
information technology (IT) consultancy and design services; and IT
support services and cloud-based services for the following categories
of software: enterprise management software and design and
manufacturing software.
The determination was made available on OFAC's website (https://ofac.treasury.gov) when it was issued. The text of the determination is
below.
OFFICE OF FOREIGN ASSETS CONTROL
DETERMINATION PURSUANT TO SECTION 1(a)(ii) OF EXECUTIVE ORDER 14071
Prohibition on Certain Information Technology and Software Services
Pursuant to sections 1(a)(ii), 1(b), and 5 of Executive Order
(E.O.) 14071 of April 6, 2022 (``Prohibiting New Investment in and
Certain Services to the Russian Federation in Response to Continued
Russian Federation Aggression'') and 31 CFR 587.802, and in
consultation with the Department of State, I hereby determine that the
prohibitions in section 1(a)(ii) of E.O. 14071 shall apply to the
following categories of services:
(1) Information technology (IT) consultancy and design services;
and
(2) IT support services and cloud-based services for the following
categories of software: enterprise management software and design and
manufacturing software (collectively, ``Covered Software'').
As a result, the following activities are prohibited, except to the
extent provided by law, or unless licensed or otherwise authorized by
the Office of Foreign Assets Control:
The exportation, reexportation, sale, or supply, directly or
indirectly, from the United States, or by a United States person,
wherever located, of IT consultancy and design services or of IT
support services or cloud-based services for Covered Software to any
person located in the Russian Federation.
This determination excludes the following:
(1) Any service to an entity located in the Russian Federation that
is owned or controlled, directly or indirectly, by a United States
person;
(2) Any service in connection with the wind down or divestiture of
an entity located in the Russian Federation that is not owned or
controlled, directly or indirectly, by a Russian person;
(3) Any service for software that is:
(i) Subject to the Export Administration Regulations, 15 CFR part
730 et seq., (EAR) and for which the
[[Page 58287]]
exportation, reexportation, or transfer (in-country) to the Russian
Federation of such software is licensed or otherwise authorized by the
Department of Commerce; or
(ii) Not subject to the EAR and for which the exportation,
reexportation, or transfer (in-country) to the Russian Federation of
such software would be eligible for a license exception or otherwise
authorized by the Department of Commerce if it were subject to the EAR.
This determination shall take effect beginning at 12:01 a.m.
eastern daylight time on September 12, 2024.
Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-15709 Filed 7-17-24; 8:45 am]
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