Publication of Russian Harmful Foreign Activities Sanctions Regulations Determination

<RULE> DEPARTMENT OF THE TREASURY <SUBAGY>Office of Foreign Assets Control</SUBAGY> <CFR>31 CFR Part 587</CFR> <SUBJECT>Publication of Russian Harmful Foreign Activities Sanctions Regulations Determination</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Office of Foreign Assets Control, Treasury. <HD SOURCE="HED">ACTION:</HD> Publication of a determination. <SUM> <HD SOURCE="HED">SUMMARY:</HD> 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. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> The determination was issued on June 12, 2024. See <E T="02">SUPPLEMENTARY INFORMATION</E> for additional relevant dates. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> OFAC: Assistant Director for Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; or Assistant Director for Compliance, 202-622-2490. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Electronic Availability</HD> This document and additional information concerning OFAC are available on OFAC's website: <E T="03">https://ofac.treasury.gov.</E> <HD SOURCE="HD1">Background</HD> On April 6, 2022, the President, invoking the authority of, <E T="03">inter alia,</E> the International Emergency Economic Powers Act (50 U.S.C. 1701 <E T="03">et seq.</E> ) (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 ( <E T="03">https://ofac.treasury.gov</E> ) when it was issued. The text of the determination is below. <HD SOURCE="HD1">OFFICE OF FOREIGN ASSETS CONTROL</HD> <HD SOURCE="HD1">DETERMINATION PURSUANT TO SECTION 1(a)(ii) OF EXECUTIVE ORDER 14071</HD> <HD SOURCE="HD1">Prohibition on Certain Information Technology and Software Services</HD> 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 <E T="03">et seq.,</E> (EAR) and for which the 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. <SIG> <NAME>Bradley T. Smith,</NAME> Director, Office of Foreign Assets Control. </SIG> </SUPLINF> <FRDOC>[FR Doc. 2024-15709 Filed 7-17-24; 8:45 am]</FRDOC> </RULE>