On November 25, 2020, the State Department issued a Federal Register Notice announcing the imposition of nonproliferation measures against certain Chinese and Russian entities for the transfer of goods, services, or technology controlled under multilateral control lists (Missile Technology Control Regime, Australia Group, Chemical Weapons Convention, Nuclear Suppliers Group, Wassenaar Arrangement) or otherwise having the potential to make a material contribution to the development of weapons of mass destruction (WMD) or cruise or ballistic missile systems. Such actions permit the imposition of export restrictions and other measures under the Iran, North Korea, and Syria Nonproliferation Act. The State Department has identified the following entities:

  • Chengdu Best New Materials Co Ltd. (China);
  • Zibo Elim Trade Company, Ltd. (China);
  • Aviazapchast (Russia);
  • Joint Stock Company Elecon (Russia);
  • Nilco Group (aka Nil Fam Khazar Company; aka Santers Holding) (Russia).

Accordingly, as of November 6, 2020, the following measures have been imposed on these entities and any successor, sub-unit, or subsidiary thereof:

  1. No department or agency of the U.S. government may procure or enter into any contract for the procurement of any goods, technology, or services from these Chinese and Russian companies;
  2. No department or agency of the U.S government may provide any assistance to these companies, and these Chinese and Russian companies are not be eligible to participate in any assistance program of the U. S. government;
  3. No U.S. government sales to these companies of any item on the United States Munitions List (USML) are permitted, and all sales to these persons of any defense articles, defense services, or design and construction services under the Arms Export Control Act are terminated; and
  4. No new export licenses will be granted for the transfer to these companies of products, technology or software controlled under the Export Administration Regulations (EAR), and any existing such licenses are suspended.

The announcement states that these measures will remain in place for two years, except to the extent that the Secretary of State may determine otherwise.