On June 28, 2022, the US Commerce Department's Bureau of Industry and Security (“BIS”) issued a new rule (“Rule”) that adds 36 entities from nine countries to the Entity List, including six specifically for their continued support of Russia's military efforts since the implementation of export controls in response to Russia's invasion of Ukraine.
It is asserted that six entities face severe restrictions on access to US technology and goods since they have agreed to continue supplying Russian military end-users from February 24, 2022, when the present restrictions were imposed. The US Commerce Department also said publicly that the two Chinese sides on the Entity List since 2018 have supported and continue to help the Russian military since the new controls were implemented.
Backfill actions of the six entities based in China, Lithuania, Russia, the United Kingdom, Uzbekistan, and Vietnam, as well as two additional entities added to the Entity List in August 2018, included previously supplying items to Russian entities of concern and continuing to contract to supply Russian parties after Russia invades Ukraine, despite collective restrictions imposed by the US and 37 coalition partners.
Additional entities are listed for a range of additional actions that are detrimental to the United States' national security and foreign policy objectives. Two Russia-based businesses are being listed based on their attempts to buy products, including those of US origin, for serving as agents, fronts, or shell firms for OOO Intertech Instruments, which was added to the Entity List on March 4, 2021, under the destination of Russia. Twelve Chinese entities have been included for engaging in fraudulent activities to sell or attempt to supply Iran with US-made electronics that will eventually help Iran's military. Other entities from China, Russia, the United Arab Emirates, and Pakistan have also been added.
The Department of Commerce has made it clear to industries and governments worldwide that it will aggressively enforce enhanced export controls on Russia to prevent evasion, including through the use of the Entity List.
According to Alan Estevez, Under Secretary of Commerce for Industry and Security, the comprehensive export controls imposed by the United States and its allies and partners are restricting the Russian military's capacity to repair, replace, and restock, and will continue to bite harder the longer Putin continues.
Also, Thea D. Rozman Kendler, Assistant Secretary of Commerce for Export Administration, stated that the government will not hesitate to act if a party violates US law, regardless of where they are situated.
Finally, the Rule also makes many additional updates and additions to different Entity List entries, such as clarifying the ability of certain entities critical to the functioning of the International Space Station to acquire specific products following US government acceptance of licensing applications. The rule becomes effective on June 28, 2022.
Şafak Herdem, Esra Temur