Second Round of US-Imposed Russia Sanctions Includes Export License Restrictions

President Donald Trump’s Aug. 1 executive order (see 1908020020) announcing a second round of sanctions on Russia under The Chemical and Biological Weapons Control and Warfare Elimination Act includes export licensing restrictions for certain Commerce-controlled goods and technologies, the State Department said. In a fact sheet issued Aug. 2, the agency said all license applications for exporting chemical or biological weapon-related items to Russian state-owned entities are subject to a policy of presumption of denial. License exceptions, however, will "continue to be available" to U.S. companies involved in existing contracts with Russian customers, the State Department said.

Certain license will be approved on a case-by-case basis, the agency said, including exports related to space flight activities, exports to “ensure the safe operation of commercial passenger aviation,” exports to “commercial end-users in Russia for civil end-uses,” exports to “wholly-owned subsidiaries of U.S. and other foreign companies in Russia” and “deemed export licenses for Russian nationals working” in the U.S. The sanctions will take effect after a 15-day congressional notification period and remain in effect for at least one year, the agency said.

The sanctions were the second round of targeted measures against Russia related to chemical and biological weapons use, according to a Aug. 4 post by Baker McKenzie. Under the executive order, the CBW Act requires the imposition of at least three out of six potential sanctions if a foreign government that has used chemical or biological weapons to violate international law does "not meet certain conditions," the post said. The State Department imposed three sanctions because Russia did not meet the conditions, the post said, including financial loan restrictions, prohibitions on U.S. banks dealing in Russian government debt, and U.S. export license restrictions on dual-use chemical and biological items under Commerce control.