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U.S. Places Hold on Issuing Licenses for Russian Exports




by:
Joan Koenig
Mollie D. Sitkowski
Drinker Biddle & Reath LLP - Chicago Office

 
March 28, 2014

Previously published on March 27, 2014

The U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) both confirmed this week that they have suspended the issuance of licenses for controlled exports destined for Russia. The DDTC and BIS also announced that they would be continuing this practice until further notice. BIS, however, clarified that existing licenses will not be affected by its policy, only applications that were not granted by March 1, 2014.

The United Kingdom (UK) has also suspended licenses for exports of military and dual-use items destined for Russia. In contrast to BIS though, its suspension affects existing licenses and applications. In addition, the UK has suspended licenses for exports of items to third parties where the end-use of the item will be incorporation into equipment destined for Russia.

These suspensions of licenses by the DDTC, BIS, and the UK complement the growing sanctions list against various individuals involved in the annexation of Crimea. Both the European Union and the U.S. have warned Russia that they will not hesitate to impose additional sanctions if Russia further escalates the situation with Ukraine.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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