Following Russia’s invasion of Ukraine on February 24, 2022, the U.S. Department of Commerce swiftly implemented trade sanctions on Russia in the form of export control restrictions added to the Export Administration Regulations (EAR). On March 4, 2022, the Department extended these new sanctions and restrictions to Belarus, which had aided preparations for the attack. Further, the United States’ allies are implementing analogous export restrictions. These partner nations include the European Union, the United Kingdom, Canada, Australia, New Zealand, Japan, and South Korea.

The EAR (15 C.F.R. pts. 730-774) prohibits the exportation, reexportation, or in-country transfer of certain items subject to the EAR to certain countries without a license from the Commerce Department’s Bureau of Industry & Security (BIS). Items subject to the EAR include goods, software and technology located in the United States or containing more than a de minimis amount of U.S.-origin materials or technology. Most controls apply to items listed on the Commerce Control List (CCL) when directed to certain countries that abuse human rights, undermine global or regional stability, or threaten the national security of the United States or its allies.

The new Russia/Belarus EAR restrictions break down into three categories: changes to the de minimis rule and two new foreign direct product (FDP) rules relating to Russia and Belarus exports. The regulations expand the de minimis rule for exports to Russia and Belarus by controlling additional commodities and technology with U.S.-origin content. The EAR implements the Russia/Belarus FDP Rule and the Russia/Belarus-Military End User FDP Rule. These two Russia/Belarus rules expand the scope of items with controlled content that U.S. persons, and some foreign persons, cannot transfer to Russia or Belarus. The Russia/Belarus FDP Rule, which covers all of Russia and Belarus, “establishes a control over foreign-produced items” directly produced with or “produced by certain plants or major components” using “U.S.-origin software or technology subject to the EAR.” The Russia/Belarus Military End User FDP Rule expands the Russia/Belarus FDP Rule restrictions to all software or technology “subject to the EAR that is on the CCL,” plus items designated EAR99. EAR99 items are items subject to the EAR but not specifically controlled on the CCL.

The Military End Use Rule further requires a license “for footnote 3-designated Russian or Belarusian military end users.” However, BIS will generally deny such license applications for a Russia or Belarus destination under its policy of denial. Importantly, these two FDP rules do not apply to the U.S. allies indicated above, who have implemented “substantially similar” export controls. 

EAR trade sanctions are only the tip of the United States’ sanctions on Russia. The United States has further expanded economic sanctions to Russian oligarchs and Russia’s oil and gas industry. Congress is even putting forth legislation to end Most Favored Nation trade relations with Russia, granted under the WTO Agreements. Russia retaliated with its own (symbolic) sanctions targeting current and former U.S. officials such as President Biden and Secretary of State Anthony Blinken. For now, it seems that the United States and its allies are coordinated and committed to a policy of full-fledged sanctions to induce Russia to end its war crimes against Ukraine and Ukrainian nationals.