US adds 49 companies to Entity List for ‘supplying controlled microchips to Russia’

The US Commerce Department’s Bureau of Industry and Security (‘BIS’) has added 49 companies which, it says, have been supplying US-made microchips to the Russian military or defence sector in violation of sanctions, to its Entity List.

Most (42) are based in China, with the others located in Estonia, Finland, Germany, India, Turkey, the United Arab Emirates (UAE) and the United Kingdom.

‘These entities supplied Russian consignees connected to the Russian defense sector with U.S.- origin integrated circuits, including those identified in “Tier 1” of the Common High Priority Items List developed by the U.S. and other international partners,’ BIS said. ‘Specifically, these entities supplied Russian consignees connected to the Russian defense sector with U.S.-origin integrated circuits after March 1, 2023.’

Assistant Secretary for Export Enforcement Matthew S. Axelrod said, ‘Today’s additions to the Entity List provide a clear message: if you supply the Russian defense sector with U.S.-origin technology, we will find out, and we will take action.’

He added, ‘We also need the help of industry – we need you to exercise extra caution when shipping high-priority items to customers abroad, to help ensure those customers aren’t then funneling those items to Russian missile and drone programs.’

According to the final rule, ‘Any such items not actually exported, reexported or transferred (in-country) before midnight, on October 6, 2023, require a license in accordance with this final rule.’

https://public-inspection.federalregister.gov/2023-22536.pdf