"Far-Reaching": U.S. Military-Related Controls Imposed on Russia and Belarus
In this article, Christopher Stagg discussed how the U.S. export controls response to Russia's invasion of Ukraine has been far-reaching by seeking to limit the export of virtually all items that may assist the Russian and Belarusian militaries and defense industries. "The key issue for many exporters is most likely not the direct impact of these restrictions to prohibit transactions with the Russian or Belarusian armed forces, but whether certain entities are using relatively low-level items for incorporation into certain types of military items, or whether the entity's actions or functions are intended to support such activities," Stagg said. For items subject to the Export Administration Regulations (EAR), there have been several notable amendments that are specific to the Russian and Belarusian militaries and defense industries, such as the revisions to the already-existing prohibitions within EAR section 744.21 which indicates that any item subject to the EAR requires a license, including any person or entity whose actions or functions are intended to support military end uses; and the introduction of the Russia/Belarus-Military End User Foreign Direct Product Rule which may apply to non-U.S.-made items. "Companies will need to step up their due diligence efforts to ensure compliance with these new restrictions… they should carefully review the text of these new regulations, as well as supporting agency guidance," Stagg said.