On September 7, the Bureau of Industry and Security (BIS) paralleled action taken on September 1 by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and amended the Export Administration Regulations (EAR) by adding eighty-one entities in the Crimea Region of Ukraine, Russia, Hong Kong, and India to the Entity List.
This action imposes licensing requirements for all items subject to the EAR to:
- One entity based on activities that are described in Executive Order 13660, Blocking Property of Certain Persons Contributing to the Situation in Ukraine.
- Eleven entities based on activities that are described in Executive Order 13661, Blocking Property of Additional Persons Contributing to the Situation in Ukraine. These companies operate in Russia’s arms or related materials sector.
- Eighteen entities based on activities that are described in Executive Order 13685, Blocking Property of Certain Persons and Prohibiting Certain Transactions with Respect to the Crimea Region of Ukraine.
Additionally, because the Entity List does not automatically apply to unlisted subsidiaries (in contrast to OFAC’s 50 percent rule), BIS added 51 subsidiaries of Gazprom to its Entity List. As a result, these entities are now subject to a licensing requirement for all items subject to the EAR when the item will be used directly or indirectly in exploration for, or production of, oil or gas in Russian deep water, Arctic offshore locations, or shale formations in Russia.