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Lost at Sea: Lack of BIS Guidance on New Russia/Belarus FDP Rule Creates Compliance Chaos

On March 2, 2022, as part of a string of sanctions and export controls, the Russia/Belarus Foreign Direct Product (“FDP”) Rule and Russia/Belarus-Military End User (“MEU”) FDP Rule took effect.1 These rules, generally, restrict the sale to Russia and Belarus of foreign-produced items produced with certain controlled U.S.-origin software or technology.

While the political aim of the Russia/Belarus FDP rules was to punish Russia for its invasion of Ukraine and punish Belarus for enabling Russia to do so, the practical outcomes and effects of the new FDP rules are unclear. Without guidance from the Bureau of Industry and Security (“BIS”), legal and compliance practitioners – as well as their clients operating in the global marketplace – are left to form their own interpretations of these already complex rules at the expense of their and their client’s reputations and businesses. Read more…