A.P. Bosch & V.J.A. Goossen: “New Round of Russia Sanctions Announced Today by State Department”

* Authors: Alexander P. Bosch, apbosch@fullcirclecompliance.eu; and Vincent J.A. Goossen, vjagoossen@fullcirclecompliance.eu. Both of Full Circle Compliance, Assistant Editors of the Daily Bugle.

Today, the U.S. State Department announced a new round of sanctions against Russia, which will come into effect on Monday, 27 August. The sanctions were announced on 6 August and are related to an alleged Russian nerve agent attacks on former Russian intelligence officer Sergei Skripal and his daughter Yulia in the British city of Salisbury. Moscow has repeatedly denied any role in the incident, but London and Washington, accused Russia of orchestrating the attack.

The new measures, which are pursuant to Section 306(a) of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, and outlined in a notice to be posted in the Federal Register on Monday, include:

(1) Foreign Assistance: Termination of assistance to Russia under the Foreign Assistance Act of 1961, except for urgent humanitarian assistance and food or other agricultural commodities or products.

(2) Arms Sales: Termination of (a) sales to Russia under the Arms Export Control Act of any defense articles, defense services, or design and construction services, and (b) licenses for the export to Russia of any item on the United States Munitions List. State has determined that it is essential to national security interests to waive the application of this sanction with respect to the issuance of licenses in support of government space cooperation and commercial space launches, provided that such licenses shall be issued on a case-by-case basis and consistent with export licensing policy for Russia prior to the enactment of these sanctions.

(3) Arms Sales Financing: Termination of all foreign military financing for Russia under the Arms Export Control Act.

(4) Denial of United States Government Credit or Other Financial Assistance: Denial to Russia of any credit, credit guarantees, or other financial assistance by any department, agency, or instrumentality of the United States Government, including the Export-Import Bank of the United States.

(5) Exports of National Security-Sensitive Goods and Technology: Prohibition on the export to Russia of any goods or technology on that part of the control list established under Section 2404(c)(1) of the Appendix to Title 50.

State determined that it is “essential to U.S. national security interests” that the following are exempt from this sanction:

(1) LICENSE EXCEPTIONS: Exports and reexports of goods or technology eligible under License Exceptions GOV, ENC, RPL, BAG, TMP, TSU, APR, CIV, and AVS.

(2) SAFETY OF FLIGHT: Exports and reexports of goods or technology pursuant to new licenses necessary for the safety of flight of civil fixed-wing passenger aviation, provided that such licenses shall be issued on a case-by-case basis, consistent with export licensing policy for Russia prior to enactment of these sanctions.

(3) DEEMED EXPORTS/REEXPORTS: Exports and re-exports of goods or technology pursuant to new licenses for deemed exports and reexports to Russian nationals, provided that such licenses shall be issued on a case-by-case basis, consistent with export licensing policy for Russia prior to enactment of these sanctions.

(4) WHOLLY-OWNED U.S. SUBSIDIARIES: Exports and reexports of goods or technology pursuant to new licenses for exports and reexports to wholly-owned U.S. subsidiaries in Russia, provided that such licenses shall be issued on a case-by-case basis, consistent with export licensing policy for Russia prior to enactment of these sanctions.

(5) SPACE FLIGHT: Exports and reexports of goods or technology pursuant to new licenses in support of government space cooperation and commercial space launches, provided that such licenses shall be issued on a case-by-case basis, consistent with export licensing policy for Russia prior to enactment of these sanctions.

(6) COMMERCIAL END-USERS: Exports and reexports of goods or technology pursuant to new licenses for commercial end-users civil end-uses in Russia, provided that such licenses shall be issued on a case-by-case basis, consistent with export licensing policy for Russia prior to enactment of these sanctions.