U.S. Commerce Department Implements Sweeping Restrictions on Exports to Russia. EU wants Putin’s, Lavrov’s assets frozen

Today, the U.S. Commerce Department, through its Bureau of Industry and Security (BIS), responded to Russia’s further invasion of Ukraine by implementing a sweeping series of stringent export controls that will severely restrict Russia’s access to technologies and other items that it needs to sustain its aggressive military capabilities. These controls primarily target Russia’s defense, aerospace, and maritime sectors and will cut off Russia’s access to vital technological inputs, atrophy key sectors of its industrial base, and undercut its strategic ambitions to exert influence on the world stage.

These measures also reflect momentous cooperation among the United States, the European Union (EU), Japan, Australia, United Kingdom, Canada, and New Zealand, with more expected to join, in aligning on export control policies and requirements. If necessary, based upon any subsequent destabilizing actions by Russia, the U.S. government will follow up in the days to come with additional stringent economic measures.

The export control measures announced today are the most comprehensive application of Commerce’s export authorities on U.S. items, including technology, as well as on foreign items produced using U.S. equipment, software, and blueprints, targeting a single nation. These actions, in concert with those that our partners are taking, restrict Russia’s access to items that can support the country’s defense industrial base and military and intelligence services.

Among the new sanctions imposed to Russia, there are:

• Significantly restricts the use of EAR license exceptions for Russia exports, reexports, and transfers (in-country). 
  Only certain sections of the following license exceptions are available for exports to Russia:
  • TMP (Temporary Imports, Exports, Reexports, and Transfers in Country), for items for use by the news media;
  • GOV, for certain government activities;
  • TSU (Technology and Software Unrestricted), for software updates to civil end users that are subsidiaries of, or joint ventures with, companies headquartered in the United States or partner countries;
  • BAG (Baggage), for baggage, excluding firearms and ammunition;
  • AVS (Aircraft, Vessels, and Spacecraft), for aircraft flying into and out of Russia;
  • ENC (Encryption Commodities, Software, and Technology), for encryption items, but not if they are destined for Russian ‘government end users’ and Russian state-owned enterprises; and
  • CCD (Consumer Communication Devices), for consumer communication devices, but not if they are destined for government end users or certain individuals associated with the government.

On the other hand,the EU is preparing to freeze the assets of Vladimir Putin and of his FM Sergei Lavrov, in a third round of sanctions against Russia for invading Ukraine, as FT reported.

EU Foreign ministers intend to agree on the sanctions package this afternoon, along with a number of measures against Russian banks and industry, sources revealed.