[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Rules and Regulations]
[Pages 58286-58287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15709]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 587


Publication of Russian Harmful Foreign Activities Sanctions 
Regulations Determination

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Publication of a determination.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is publishing a services determination issued pursuant 
to an April 6, 2022 Executive Order. The determination was previously 
issued on OFAC's website.

DATES: The determination was issued on June 12, 2024. See SUPPLEMENTARY 
INFORMATION for additional relevant dates.

FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for 
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 
202-622-4855; or Assistant Director for Compliance, 202-622-2490.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website: https://ofac.treasury.gov.

Background

    On April 6, 2022, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.) (IEEPA), issued Executive Order (E.O.) 14071 of April 6, 2022, 
``Prohibiting New Investment in and Certain Services to the Russian 
Federation in Response to Continued Russian Federation Aggression'' (87 
FR 20999, April 8, 2022). Among other prohibitions, section 1(a)(ii) of 
E.O. 14071 prohibits the exportation, reexportation, sale, or supply, 
directly or indirectly, from the United States, or by a United States 
person, wherever located, of any category of services as may be 
determined by the Secretary of the Treasury, in consultation with the 
Secretary of State, to any person located in the Russian Federation.
    On June 12, 2024, pursuant to delegated authority, the Director of 
OFAC, in consultation with the Department of State, issued 
``Determination Pursuant to Section 1(a)(ii) of Executive Order 
14071,'' which determined that the prohibitions in section 1(a)(ii) of 
E.O. 14071 shall apply to the following categories of services: 
information technology (IT) consultancy and design services; and IT 
support services and cloud-based services for the following categories 
of software: enterprise management software and design and 
manufacturing software.
    The determination was made available on OFAC's website (https://ofac.treasury.gov) when it was issued. The text of the determination is 
below.

OFFICE OF FOREIGN ASSETS CONTROL

DETERMINATION PURSUANT TO SECTION 1(a)(ii) OF EXECUTIVE ORDER 14071

Prohibition on Certain Information Technology and Software Services

    Pursuant to sections 1(a)(ii), 1(b), and 5 of Executive Order 
(E.O.) 14071 of April 6, 2022 (``Prohibiting New Investment in and 
Certain Services to the Russian Federation in Response to Continued 
Russian Federation Aggression'') and 31 CFR 587.802, and in 
consultation with the Department of State, I hereby determine that the 
prohibitions in section 1(a)(ii) of E.O. 14071 shall apply to the 
following categories of services:
    (1) Information technology (IT) consultancy and design services; 
and
    (2) IT support services and cloud-based services for the following 
categories of software: enterprise management software and design and 
manufacturing software (collectively, ``Covered Software'').
    As a result, the following activities are prohibited, except to the 
extent provided by law, or unless licensed or otherwise authorized by 
the Office of Foreign Assets Control:
    The exportation, reexportation, sale, or supply, directly or 
indirectly, from the United States, or by a United States person, 
wherever located, of IT consultancy and design services or of IT 
support services or cloud-based services for Covered Software to any 
person located in the Russian Federation.
    This determination excludes the following:
    (1) Any service to an entity located in the Russian Federation that 
is owned or controlled, directly or indirectly, by a United States 
person;
    (2) Any service in connection with the wind down or divestiture of 
an entity located in the Russian Federation that is not owned or 
controlled, directly or indirectly, by a Russian person;
    (3) Any service for software that is:
    (i) Subject to the Export Administration Regulations, 15 CFR part 
730 et seq., (EAR) and for which the

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exportation, reexportation, or transfer (in-country) to the Russian 
Federation of such software is licensed or otherwise authorized by the 
Department of Commerce; or
    (ii) Not subject to the EAR and for which the exportation, 
reexportation, or transfer (in-country) to the Russian Federation of 
such software would be eligible for a license exception or otherwise 
authorized by the Department of Commerce if it were subject to the EAR.
    This determination shall take effect beginning at 12:01 a.m. 
eastern daylight time on September 12, 2024.

Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-15709 Filed 7-17-24; 8:45 am]
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