Today, the U.S. Commerce Department, through the Bureau of Industry and Security (BIS), is issuing a rule that formally adds the nations of Iceland, Liechtenstein, Norway, and Switzerland to the growing global coalition of nations that are cooperating in the stand against Russian aggression, and Belarusian complicity, through their implementation of similarly stringent export controls. Multilateral application of export controls is a force-multiplier in cutting Russia and Belarus off from the commodities, technologies, and software necessary to sustain their aggression, depriving their defense, aerospace, and maritime sectors of key materials.
US Secretary of Commerce, Gina M. Raimondo in his remarks made it known today that the more countries that agree to implement tough export controls, the less chance Vladimir Putin has to obtain the commodities, software, and technologies that he needs to sustain his brutal war machine, saying the US welcome the commitment of Iceland, Liechtenstein, Norway, and Switzerland to joining the U.S. and 33 other allies and partners in standing together against Putin’s aggression.
Deputy Secretary of Commerce Don Graves added that today’s rule recognizes the strong partnership they have with Iceland, Liechtenstein, Norway, and Switzerland in standing up for democracy and in solidarity with the people of Ukraine. He in his speech also mentioned that the effectiveness of export controls is enhanced greatly when they are joined by committed international allies and partners., recognizing that the more the coalition with foreign countries grows, the fewer places Putin and the Kremlin can turn for aid.
Under a rule issued and implemented today by BIS, Iceland, Liechtenstein, Norway, and Switzerland are added to the list of countries that are excluded from certain license requirements of the U.S. Russia/Belarus Sanctions rules, including the foreign direct product (FDP) rules for Russia/Belarus and Russian/Belarusian Military End Users (MEUs). Iceland, Liechtenstein, Norway, and Switzerland join Australia, Canada, the 27 member states of the European Union (EU), Japan, the Republic of Korea, New Zealand, and the United Kingdom, bringing the total number of countries excluded from application of the FDP rules to 37.
Specifically, under the Export Administration Regulations (EAR), countries that have made a commitment to implement substantially similar export controls on Belarus and Russia under their domestic laws may receive full or partial exclusions, as appropriate, from the FDP rules’ license requirements, and such license requirements are not used to determine controlled U.S.-content under the EAR’s de minimus rules provided certain criteria set forth under the new Russia-Belarus restrictions (§746.8 of the EAR) are met.
Adoption of substantially similar export controls by the countries in the coalition expands the scope of products that cannot be obtained by Russia and Belarus. Countries that apply substantially similar controls to those of the United States through their own laws are excluded from application of the FDP rules for Russia/Belarus and Russian/Belarusian MEUs because their own domestic controls duplicate the effects of these FDP rules. These partners are sharing in the effort required to implement these controls globally through their own legal systems, educating companies on compliance responsibilities under their domestic laws, and leveraging their law enforcement resources. The United States will continue to work tirelessly with our partners to share information and enforcement resources, and to coordinate on the commodities, technologies, and software to be controlled, which will result in an increasingly effective global effort.
These BIS actions were taken under the authority of the Export Control Reform Act of 2018 and its implementing regulations, the Export Administration Regulations (EAR).
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