Section 746.5 - Russian and Belarusian industry sector sanctions(a)License requirements. For purposes of paragraphs (a)(1)(i) through (iii) of this section, a license is not required for deemed exports and deemed reexports. For purposes of paragraphs (a)(1)(ii) and (iii) of this section, a license is not required for any item that is listed in supplement no. 4 or 6 to this part that is also classified in an Export Control Classification Number (ECCN) on the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR. See § 746.8 for license requirements, license exceptions, and license review policies for exports, reexports, and transfers to or within Russia or Belarus for items classified in ECCNs. (1)General prohibition.(i) A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 2 to this part and items specified in ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 when you "know" that the item will be used directly or indirectly in exploration for, or production of, oil or gas in Russian deepwater (greater than 500 feet) or Arctic offshore locations or shale formations in Russia or Belarus, or are unable to determine whether the item will be used in such projects. Such items include, but are not limited to, drilling rigs, parts for horizontal drilling, drilling and completion equipment, subsea processing equipment, Arctic-capable marine equipment, wireline and down hole motors and equipment, drill pipe and casing, software for hydraulic fracturing, high pressure pumps, seismic acquisition equipment, remotely operated vehicles, compressors, expanders, valves, and risers.(ii) A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 4 to this part to or within Russia or Belarus.(iii) A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 6 to this part to or within Russia or Belarus.(iv) You should be aware that other provisions of the EAR, including parts 742 and 744 and § 746.8 , also apply to exports, reexports, and transfers (in-country) to Russia or Belarus. License applications submitted to BIS under this section may include the phrase "§ 746.5(a)(1)(i) ", "§ 746.5(a)(1)(ii) ", or "§ 746.5(a)(1)(iii) " in Block 9 (Special Purpose) as described in supplement no. 1 to part 748 of the EAR. Note 1 to paragraph (a)(1): The exclusion for deemed exports and deemed reexports is limited to the license requirements specified in these paragraphs (a)(1)(i) through (iii). Any deemed export or deemed reexport to a Russian or Belarusian national must be made in accordance with all other applicable EAR license requirements, such as CCL-based license requirements. For example, the release of NS1 controlled technology to a Russian or Belarusian national in the United States or in a third country would require a CCL-based deemed export or deemed reexport license (as applicable). Consequently, authorization (in the form of a deemed export or deemed reexport license, or license exception eligibility) would be required under the EAR notwithstanding the exclusion in this paragraph (a)(1).
(2)Additional prohibition on those informed by BIS. BIS may inform persons, either individually by specific notice or through amendment to the EAR, that a license is required for a specific export, reexport, or transfer (in-country) or for the export, reexport, or transfer (in-country) of specified items to a certain end-user or end-use, because there is an unacceptable risk of use in, or diversion to, the activities specified in paragraph (a)(1) of this section in Russia or Belarus.Specific notice is to be given only by, or at the direction of, the Deputy Assistant Secretary for Export Administration. When such notice is provided orally, it will be followed by a written notice within two working days signed by the Deputy Assistant Secretary for Export Administration. However, the absence of any such notification does not excuse persons from compliance with the license requirements of paragraph (a)(1) of this section.(3)Exclusion from scope of U.S.-origin controlled content under paragraph (a)(1)(i) through (iii) of this section. For purposes of determining U.S.-origin controlled content under supplement no. 2 to part 734 of the EAR when making a de minimis calculation for reexports and exports from abroad to Russia or Belarus, the license requirements in paragraph (a)(1)(i) through (iii) of this section are not used to determine controlled U.S.-origin content in a foreign-made item, provided the criteria in paragraphs (a)(3)(i) and (ii) of this section are met:(i) The U.S.-origin content is described in supplement nos. 2, 4, or 6 and is not otherwise excluded from the applicable Scope column in supplement no. 3 to this part; and(ii) The foreign made item will be reexported or exported from abroad from a country described in supplement no. 3 to this part.(b)Licensing policy.(1) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraph (a)(1)(i) of this section that requires a license for Russia or Belarus will be reviewed under a policy of denial when for use directly or indirectly for exploration or production from deepwater (greater than 500 feet), Arctic offshore, or shale projects in Russia or Belarus that have the potential to produce oil or gas. The following types of license applications will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian government or defense sector: (i) Applications for export, reexport, or transfer (in-country) of items that may be necessary for health and safety reasons;(ii) Applications for the disposition of items by companies not headquartered in Country Group D:1, D:5, E:1 or E:2 in supplement no. 1 to part 740 that are curtailing or closing all operations in Russia or Belarus;(iii) Applications for items that are predominantly agricultural or medical in nature; and(iv) Replacement licenses for exports and reexports to and transfers within Russia and Belarus of items described in HTS-6 Codes or items described in supplement no. 6 to part 746 that were added to the EAR and made subject to license requirements after the validation date of the BIS license.(2) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraph (a)(1)(ii) or (iii) of this section that requires a license for Russia or Belarus will be reviewed under a policy of denial. The following types of license applications will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian government or defense sector: (i) Applications related to safety of flight;(ii) Applications for export, reexport, or transfer (in-country) of items that may be necessary for health and safety reasons;(iii) Applications for items that meet humanitarian needs;(iv) Applications for the disposition of items by companies not headquartered in Country Group D:1, D:5, E:1 or E:2 in supplement no. 1 to part 740 of this chapter that are curtailing or closing all operations in Russia or Belarus;(v) Applications for items that are predominantly agricultural or medical in nature; and(vi) replacement licenses for exports and reexports to and transfers within Russia and Belarus to add items described in HTS-6 Codes or items described in supplement no. 6 to part 746 that were added to the EAR after the validation date of the BIS license. Note 2 to paragraph (b): See also § 750.7(c)(1)(xi) of the EAR for the divesture of items within Russia or Belarus or the transfer of items within Russia or Belarus for the purpose of reexporting such items from Russia or Belarus. For purposes of § 750.7(c)(1)(xi) , divesture means the action or process of selling off subsidiary business interests or investments involving items subject to the EAR.
(c)License exceptions. No license exceptions may overcome the license requirements set forth in this section, except the license exceptions identified in paragraphs (c)(2) and (7) of this section. (1) License Exception TMP for items for use by the news media as set forth in § 740.9(a)(9) of the EAR.(2) License Exception GOV (§ 740.11(b) of the EAR).(3) License Exception TSU for software updates for civil end-users that are wholly-owned U.S. subsidiaries, branches, or sales offices, foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. and companies, joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries, the wholly-owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740, or joint ventures of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6 (§ 740.13(c) of the EAR).(4) License Exception BAG, excluding firearms and ammunition (§ 740.14 , excluding paragraph (e), of the EAR).(5) License Exception AVS, excluding any aircraft registered in, owned or controlled by, or under charter or lease by Russia or Belarus or a national of Russia or Belarus (§ 740.15(a) and (b) of the EAR).(6) License Exception encryption commodities, software, and technology (ENC) for civil end-users that are wholly-owned U.S. subsidiaries, branches, or sales offices, foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. companies, joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries, the wholly-owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740, or joint ventures of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6 (§§ 740.13(c) and 740.17 of the EAR).(7) License Exception CCD (§ 740.19 of the EAR).79 FR 45680, Aug. 6, 2014, as amended at 79 FR 55615, Sept. 17, 2014; 80 FR 47405, Aug. 7, 2015; 87 FR 12858, Mar. 8, 2022; 87 FR 57085, Sept. 16, 2022; 88 FR 12181, Feb. 27, 2023; 88 FR 33428, May 23, 2023; 89 FR 4810, Jan. 25, 2024 87 FR 12248, 3/3/2022; 87 FR 12858, 3/8/2022; 87 FR 28760, 5/11/2022; 87 FR 57085, 9/16/2022; 88 FR 12181, 2/24/2023; 88 FR 33428, 5/19/2023; 89 FR 4810, 1/23/2024