The United States and its allies are aiming to choke off the supplies that support the last vestiges of Russian industry. On May 19, 2023, the Bureau of Industry and Security (BIS) released new regulations implementing additional restrictions under the Export Administration Regulations (EAR) as well as corrections and clarifications on existing controls for Russia and Belarus. Those additions build on recent export control regulations issued on February 24, 2023 (which we discuss here) and significantly expand controls over items that can be used in even basic electronics and manufacturing. The new regulations continue BIS’s push to leave very little that may be sent into Russia from the United States.
Between Russia’s invasion of Ukraine and growing U.S. tensions with China, U.S. export controls are in the spotlight like never before. As if regulators have not already made it clear enough, recent statements and actions indicate that the enforcement crosshairs are squarely on the semiconductor industry.…
As you may have heard here (and here and here), in October 2022, the United States issued sweeping measures aimed at the semiconductor industry in China. The new regulations restrict the export of semiconductors and related technology, manufacturing equipment, software, and even U.S.-person support, to China. The regulations are part of a high-stakes chess match between the United States and China, as they compete for technological and economic dominance. One important result of this struggle is that the global semiconductor industry is being squeezed by the regulatory and geopolitical pressure exerted by both sides.…
On Friday, October 7, 2022, the U.S. Bureau of Industry and Security (BIS) released for public inspection (available here) one hundred forty pages of regulations (which we’ll call “the Regulation” here). Nearly all of the changes in the Regulation restrict the export of semiconductors, as well as related technology, manufacturing equipment, software, and even U.S.-person support, to China.…
** Update: Announcement has been moved to Friday October 7, 2022 at 9:30 AM Eastern Daylight Time **
On Thursday, the Biden administration will announce new restrictions preventing China from accessing advanced U.S. semiconductor technology.…
On April 29, 2022, the UK introduced new measures to prevent the provision of internet services to or for the benefit of designated persons. These measures apply to the whole territory of the UK and to conduct by UK persons where that conduct is wholly or partly outside the UK. The designated entities or individuals (“Designated Persons”) can be found on the regularly updated UK Sanctions List with the tag “Internet Sanctions List”. To date, only V-Novosti and Rossiya Segodnya are designated under those authorities.…
Updated as of March 9, 2022
Key Takeaways of OFAC (Treasury), BIS (Commerce), and State Actions
- Major Russian Banks Blocked from the U.S. Financial System
Updated as of March 3, 2022
Key Takeaways of EU and UK Recent Actions Against Russia and Ukraine Breakaway Regions
- The EU adopted sanctions restrictions targeting financial institutions, other entities, and individuals, and imposing territorial restrictions on Donetsk and Luhansk. The sanctions also include broad export restrictions to Russia detailed below.
- In the UK, Prime Minister Boris Johnson has promised and adopted a “massive package of economic sanctions” including asset freeze restrictions; potential exclusion of Russian banks from the UK financial system, including preventing access by such banks to GBP and clearing services in the UK; and dual-use export restrictions to Russia.
Updated as of February 25, 2022
- On February 21, 2022, the White House issued a new Executive Order (EO) that imposes comprehensive sanctions
- BIS added 33 Chinese companies to the Unverified List.
- The UVL places lesser restrictions designees than an Entity List or Sanctions designation
- BIS may not have been able to verify the entities because of new Chinese laws restricting compliance with extraterritorial laws; creating a potential conflict of laws for these and other companies.
- The proposed regulation would arm the EU with a counterstrike capability if non-EU countries take economic action against a Member State.
- Where a Member State is subject to economic interferences from non-EU states that affect its legitimate sovereign choices.
- The European Commission to take some or all of the following measures against the interfering state:
- Impose tariffs;
- Implement quotas;
- Restrict access to EU financial markets; or
- Reduce intellectual property protections