U.S. Adds Russia’s Defense Ministry, Chinese & Russian Defense Entities to Sanctions List

The U.S. Department of Commerce today sanctioned the Russian Ministry of Defense besides some of the major Russian and Chinese defense and aerospace firms.

In a statement today, the Bureau of Industry and Security (BIS) said it will amend the Export Administration Regulations (EAR) by adding a new ‘Military End User’ (MEU) List, as well as the first tranche of 103 entities, which includes 58 Chinese and 45 Russian companies.

The MEU List informs exporters, reexporters, and transferors that a license will be required to export, reexport, or transfer (in-country) designated items to listed entities. The U.S. Government has determined that these entities represent an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ in China, Russia, or Venezuela.

Aside of the Russian MoD, the initial list with 103 entities consists of Foreign Intelligence Service (SVR), Irkut Corporation, JSC TsNIIMash, Kazan Helicopter Plant, Komsomolsk-na-Amur Aviation Production Organization, NPO High Precision Systems, Oboronprom, Beriev Aircraft Company, Rosoboronexport, Rostec, Russian Aircraft Corporation MiG, Russian Helicopters, Sukhoi Aviation, Sukhoi Civil Aircraft, Tactical Missiles Corporation, Tupolev, United Aircraft Corporation (UAC) and United Engine Corporation (UEC).

It also includes China’s state-owned Aviation Industry Corporation of China (AVIC), Shaanxi Aircraft Corporation, Shanghai Aircraft Design and Research Institute, Shenyang Aircraft Corporation (SAC) and Xian Aircraft Industrial Company Limited. The new sanctions come three days after the United States blacklisted the country’s top chipmaker SMIC and drone maker SZ DJI Technology Co Ltd.

“This action establishes a new process to designate military end users on the MEU List to assist exporters in screening their customers for military end users,” said Commerce Secretary Wilbur Ross.  “The Department recognizes the importance of leveraging its partnerships with U.S. and global companies to combat efforts by China and Russia to divert U.S. technology for their destabilizing military programs, including by highlighting red flag indicators such as those related to Communist Chinese military companies identified by the Department of Defense.”