Commerce Expands Russian Entity List and Poison Gas Precursors

The Commerce Department’s Bureau of Industry and Security (BIS) is adding 40 foreign entities, as well as 4 addresses, to the Entity List and tightening restrictions on 49 foreign entities that were already on the Entity List to address their procurement of high-priority U.S.-branded microelectronics and other items on behalf of Russia.

The entities are located in the People’s Republic of China (PRC), as well as India, Malaysia, Russia, Singapore, Türkiye, Estonia, Finland, the United Arab Emirates (UAE), and the United Kingdom (UK).

BIS is also imposing additional restrictions on the export of 9 chemical precursors used to produce riot control agents (RCAs) and chemical weapons used on the battlefield against Ukraine in violation of treaty commitments. 

Wednesday's actions targeting procurement networks are taken in concert with similar actions by the Departments of State and Treasury and continue to demonstrate the importance of preventing the use of U.S.-origin and U.S.-branded products by Russia’s defense industrial base.

“American products do not belong in the hands of those who prop up Russia’s defense industrial base,” said Under Secretary of Commerce for Industry and Security Alan F. Estevez. “We will continue to thwart Russian procurement networks operating in the People’s Republic of China (PRC) and wherever else we see them.”

Said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod,  “If you’re supporting Russia’s aerospace, chem-bio warfare, or drone programs, or you enable the activities of Russian shell companies, we will do everything possible to ensure you end up on our Entity List.”

Russia-related Entity List Additions and Modifications:

BIS is adding 40 entities under 42 entries to the Entity List. These additions combat the diversion of U.S.-origin or U.S.-branded products to Russia through third countries. Other additions include military end-users in Russia and companies involved in Russia’s chemical and biological weapons program. BIS is also adding four addresses to the Entity List that are associated with the significant transshipment of sensitive items to Russia and are linked to entities whose activities risk violating BIS controls.

In addition, BIS is modifying 49 entities under 52 entries on the Entity List to identify Russian procurement entities and subject these entities to expanded controls on exports, reexports, and transfers (in-country) involving certain foreign-produced items – ensuring that U.S.-branded electronic components are not diverted to Russia through these foreign procurement networks.

Chemical Weapons

BIS is adding controls on 9 chemical precursors that can be used to produce certain chemical weapons or RCAs. Although these chemical precursors have mostly commercial uses, Russia’s use of riot control agents as a method of warfare and the use of chemical weapon chloropicrin against Ukraine has raised concerns about Russia’s further production and weaponization of these chemicals. It is important to ensure that none of these items falls into Russia’s hands for misuse.

Earlier this year, the Department of State issued an assessment that Russia had used Riot Control Agents (RCAs) as a method of warfare against Ukrainian forces in violation of the Chemical Weapons Convention (CWC). Subsequently, the Department of State issued a determination that Russia had used chloropicrin against Ukrainian troops in violation of the CWC.

Additional Background on the Entity List Process

The Entity List actions were taken under the authority of the Export Control Reform Act of 2018 and its implementing regulations, the Export Administration Regulations (EAR). The Entity List (supplement no. 4 to part 744 of the EAR) identifies entities and addresses for which there is reasonable cause to believe, based on specific and articulable facts, that the entities—including businesses, research institutions, government and private organizations, individuals, and other types of legal persons—or parties that are operating at an address that presents a high diversion risk, have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States. Parties on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR. 

Entity List additions are determined by the interagency End-User Review Committee (ERC), comprised of the Departments of Commerce (Chair), Defense, State, Energy, and where appropriate, the Treasury. The ERC makes decisions regarding additions to, removals from, or other modifications to the Entity List. The ERC makes all decisions to add an entity to the Entity List by majority vote and makes all decisions to remove or modify an entity by unanimous vote.

Entity List:

Export Administration Regulations:

Additional information on the Entity List is available on BIS’s website at: https://www.bis.gov/entity-list