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New Restrictions on Exports to Russia Come into Force in the USA
June 30, 2020 13:34


Two new rules have come into force in the United States that restrict the export of goods to Russia. They relate, inter alia, to the export of computers and bearings, which will need to be licensed even for deliveries to civilian consumers.

On Monday, two new rules by the Bureau of Industry and Security (BIS) of the US Department of Commerce came into force, which further limit the export of sensitive technologies to Russia, RBC drew attention to this.

The first rule cancels the exception for American exporters, who previously could supply a wide range of goods to Russia without a license if they are intended for civilian use by civilian consumers. We are talking about bearings, semiconductors, computers and other products. Now, even if these goods are supposed to be used exclusively for civilian purposes, the exporter will have to obtain a special license from the Ministry of Trade.

The cancellation of the “civilian” license for such deliveries by BIS was explained by the fact that countries such as China and Russia often use the integration strategy of civil and military sectors, and this makes it difficult for exporters to identify the end user. The change concerns not only Russia, China and Venezuela, but also Armenia, Azerbaijan, Ukraine, Belarus, Kazakhstan and Iraq.

The second rule broadens the definition of “military use” of goods. It will reduce the ability of the Russian defense sector to purchase American goods, technology and software, RBC emphasizes. “End military user” will mean the armed forces, the police, the national guard, intelligence services, as well as “any organization or person whose actions or functions are intended to support the military use” of the product.

“Final military use” will mean not only the development or production of military products, but also the use of any product to “support or facilitate the operation, installation, maintenance or repair, modernization” of military products.


Author: Anna Dorozhkina

Tags: Russian business Russian International Russian companies   

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