Emergency Approval request letter for OMB

UNITED STATES DEPARTMENT OF COMMERCE
Bureau of Industry and Security
1401 Constitution Avenue, Suite 3896
Washington, DC 20230

March 11, 2022
MEMORANDUM FOR:

Dominic Mancini
Deputy Director, Office of Information
and Regulatory Affairs
Office of Management and Budget

FROM:

Karen Nies-Vogel
Director, Office of Exporter Services

SUBJECT:

Digitally signed by

KAREN
KAREN NIES-VOGEL
 NIES-VOGEL Date: 2022.03.11
09:19:47 -05'00'

Request for OMB Emergency Review and
Approval of Information Collection for
Implementation of Sanctions Against Russia
Under the Export Administration Regulations
(EAR)

On behalf of the Bureau of Industry and Security (BIS), I am seeking approval for emergency
Paperwork Reduction Act (PRA) clearances to allow the Department of Commerce (DOC), as
represented by BIS, to publish a Federal Register Notice (FRN)(rule) on the “Implementation of
Sanctions on Luxury Goods Destined for Russia and Belarus and for Russian and Belarusian
Oligarchs and Malign Actors Under the Export Administration Regulations (EAR)” (15 CFR 730 –
774).
BACKGROUND
In response to the Russian Federation’s (Russia) February 2022 further invasion of Ukraine and
Belarus’ substantial enabling of this invasion, the Bureau of Industry and Security (BIS) imposed
extensive sanctions on Russia and Belarus under the EAR by implementing a final rule,
“Implementation of Sanctions Against Russia Under the Export Administration Regulations
(EAR),” effective February 24, 2022 (“Russia Sanctions rule”), and subsequently in three additional
final rules published in March 2022: (“March 2022 rules”), “Imposition of Sanctions Against
Belarus Under the Export Administration Regulations (EAR),”effective March 2, 2022 (“Belarus
Sanctions rule”); “Expansion of Sanctions Against the Russian Industry Sector Under the Export
Administration Regulations (EAR),” effective March 3, 2022 (“Industry Sector Sanctions rule”);
and “Further Imposition of Sanctions Against Russia with the Addition of Certain Entities to the
Entity List,” effective March 3, 2022 (“Russia Entity List rule”), all of which imposed sanctions on
Russia and Belarus. BIS also published an additional rule in March 2022, “Addition to the List of
Countries Excluded from Certain License Requirements under the Export Administration
Regulations (EAR),” effective March 4, 2022 (“South Korea exclusion rule”), that added South
Korea to the list of countries in supplement no. 3 to part 746 of the EAR that are excluded from
certain § 746.8 license requirements specific to items destined for Russia or Belarus. As described
in the Russia Sanctions rule’s preamble and the other March 2022 rules, Russia’s invasion of
Ukraine, and Belarus’s substantial enabling of Russia’s actions, flagrantly violates international law,
is contrary to U.S. national security and foreign policy interests, and undermines global order, peace,
and security, and consequently necessitates the imposition of stringent sanctions.

In further response to Russia’s further invasion of Ukraine, and Belarus’s substantial
enabling of Russia’s invasion, DOC is imposing restrictions on the export, reexport, or
transfer (in-country) to or within Russia or Belarus of luxury goods under the EAR and
for exports, reexports and transfers (in-country) worldwide of the same items to certain
Russian or Belarus oligarchs and other malign actors supporting the Russian or
Belarusian governments. These new export controls will impose additional costs on
the persons and organizations that have the financial resources to purchase luxury
goods in Russia, Belarus, and other countries, and are also likely to have access to, and
able to apply pressure to, the Russian and Belarusian governments.
JUSTIFICATION
The collection of information is needed prior to the expiration of the time period
normally associated with a routine submission for review under the provisions of the
PRA. The export control measures implemented in this final rule build upon the policy
objectives set forth in the Russia and Belarus sanctions rules by restricting Russia and
Belarus’ access to luxury goods in order to increase the costs on Russian and
Belarusian persons who support the government of Russia and its invasion of Ukraine.
These individuals include Russian persons (together, Russian oligarchs and malign
actors), wherever located, who have been designated by the Department of the
Treasury, Office of Foreign Assets Control’s (OFAC) under or pursuant to certain
Russia and Ukraine-related Executive Orders issued in response to Russia’s 2014
occupation of Crimea and related destabilizing conduct in Ukraine, and are listed on
the List of Specially Designated Nationals and Blocked Persons (SDN List) maintained
by OFAC.
The changes made by this rule are intended to limit access to luxury goods by
restricting the export, reexport and transfer (in-country) of certain items subject to the
EAR desirable to wealthy Russian and Belarusian citizens, including Russian and
Belarus oligarchs and malign actors. Limiting the export, reexport, and transfer (incountry) of luxury goods will undermine the ability of the individuals to acquire the
items, thereby further highlighting to these influential individuals the financial
consequences of Russia’s invasion of Ukraine to their lifestyle. With respect to the
Russian and Belarusian oligarchs and malign actors, these restrictions on access to
luxury goods complement the restrictions on their assets imposed by OFAC and by
partner and allied countries. The restriction of access to luxury goods implemented in
this rule also highlights to the Russian and Belarusian elites their loss of the benefits of
full participation in the international market.
The export controls in this rule target ‘luxury goods’ for export or reexport to or
transfer within Russia or Belarus, as well as to certain Russian and Belarusian
oligarchs and malign actors, wherever they are located. This rule is part of a larger
U.S. Government action, in coordination with partner and allied countries, intended to
increase the financial consequences on Russia and Belarus as a result of Russia’s
invasion of Ukraine and Belarus’s substantial enabling of Russia’s invasion, as well as
on Russian individuals who have supported Russia’s destabilizing conduct since
Russia’s 2014 occupation of the Crimea region of Ukraine.