1. (a) License requirements—(1) General prohibition.

   1. (i) A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 2 to this part and items specified in ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 when you “know” that the item will be used directly or indirectly in exploration for, or production of, oil or gas in Russian deepwater (greater than 500 feet) or Arctic offshore locations or shale formations in Russia or Belarus, or are unable to determine whether the item will be used in such projects. Such items include, but are not limited to, drilling rigs, parts for horizontal drilling, drilling and completion equipment, subsea processing equipment, Arctic-capable marine equipment, wireline and down hole motors and equipment, drill pipe and casing, software for hydraulic fracturing, high pressure pumps, seismic acquisition equipment, remotely operated vehicles, compressors, expanders, valves, and risers.
   2. (ii) A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 4 to this part to or within Russia or Belarus.
   3. (iii) A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 6 to this part to or within Russia or Belarus.
   4. (iv) You should be aware that other provisions of the EAR, including parts 742 and 744 and § 746.8, also apply to exports, reexports, and transfers (in-country) to Russia or Belarus. License applications submitted to BIS under this section may include the phrase “§ 746.5(a)(1)(i)”, “§ 746.5(a)(1)(ii)”, or “§ 746.5(a)(1)(iii)” in Block 9 (Special Purpose) as described in supplement no. 1 to part 748 of the EAR.
   5. (2) Additional prohibition on those informed by BIS. BIS may inform persons, either individually by specific notice or through amendment to the EAR, that a license is required for a specific export, reexport, or transfer (in-country) or for the export, reexport, or transfer (in-country) of specified items to a certain end-user or end-use, because there is an unacceptable risk of use in, or diversion to, the activities specified in paragraph (a)(1) of this section in Russia or Belarus.Specific notice is to be given only by, or at the direction of, the Deputy Assistant Secretary for Export Administration. When such notice is provided orally, it will be followed by a written notice within two working days signed by the Deputy Assistant Secretary for Export Administration. However, the absence of any such notification does not excuse persons from compliance with the license requirements of paragraph (a)(1) of this section.

2. (b) Licensing policy.

   1. (1) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraph (a)(1)(i) of this section that requires a license for Russia or Belarus will be reviewed under a policy of denial when for use directly or indirectly for exploration or production from deepwater (greater than 500 feet), Arctic offshore, or shale projects in Russia or Belarus that have the potential to produce oil or gas. The following types of license applications will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian government or defense sector: applications for export, reexport, or transfer (in-country) of items that may be necessary for health and safety reasons and applications for the disposition of items by companies not headquartered in Country Group D:1, D:5, E:1 or E:2 in supplement no. 1 to part 740 that are curtailing or closing all operations in Russia or Belarus.
   2. (2) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraph (a)(1)(ii) or (iii) of this section that requires a license for Russia or Belarus will be reviewed under a policy of denial. The following types of license applications will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian government or defense sector: applications for export, reexport, or transfer (in-country) of items that may be necessary for health and safety reasons; applications for items that meet humanitarian needs; and applications for the disposition of items by companies not headquartered in Country Group D:1, D:5, E:1 or E:2 in supplement no. 1 to part 740 that are curtailing or closing all operations in Russia or Belarus.

3. (c) License exceptions. No license exceptions may overcome the license requirements set forth in this section, except the following license exceptions identified in paragraphs (c)(1) and (2) of this section.

   1. (1) License Exception GOV (§ 740.11(b)).
   2. (2) License Exception CCD (§ 740.19 of the EAR).

[79 FR 45680, Aug. 6, 2014, as amended at 79 FR 55615, Sept. 17, 2014; 80 FR 47405, Aug. 7, 2015; 87 FR 12858, Mar. 8, 2022; 87 FR 28760, May 11, 2022; 87 FR 57085, Sept. 16, 2022; 88 FR 12181, Feb. 27, 2023]