Commerce increases sanctions on Russia impacting space commerce and trade

The Commerce Department last month announced that is increasing the level of sanctions against trade with Russia because it had determined that country had violated international law by using chemical weapons against specific dissidents both in and out of Russia.

On March 4, 2018, the Russia Government deployed a Novichok nerve agent in an attack against former Russian military officer Sergei Skripal and his daughter Yulia Skripal in the United Kingdom. In response, the U.S. Government imposed two sets of sanctions against Russia pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) in August 2018 and August 2019.

On August 20, 2020, the Russian Government again deployed a Novichok nerve agent, this time against Russian opposition figure Aleksey Navalny, warranting a new determination by the Secretary of State and additional sanctions under the CBW Act.

While this ruling will have a negative impact on any space-related U.S./Russian activities, the full ruling specifically included these waivers:
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The Obama administration has approved a deal between Space Systems/Loral and a Chinese satellite company, even though this is the same company that leaked crucial satellite technology to China in the past.

Here we go again: The Obama administration has approved a deal between Space Systems/Loral and a Chinese satellite company, even though this is the same company that leaked crucial satellite technology to China in the past.

Loral is the same company that gave big donations to Bill Clinton and the Democratic Party back in the 1990s, then got permission to make a launch deal with the Chinese. Shortly thereafter it was learned that the Chinese had obtained restricted and crucial military satellite technology from the arrangement.

Virgin Galactic has been cleared by the State Department to fly foreign tourists without obtaining an export license.

Good news: Virgin Galactic has been cleared by the State Department to fly foreign tourists without obtaining an export license.

[Mark Sundahl, an associate professor of law at Cleveland State University in Ohio], said that without this determination from State, allowing a non-U.S. citizen to ride in a Virgin spacecraft — or even training a non-U.S. citizen to do so — would legally have been an export activity that required federal approval. The time it takes to obtain an export license varies, but several months is a reasonable estimate, said Sundahl, who specializes in international commerce and space law. “Under ITAR, any disclosure of controlled technical data to a foreign national, even if the disclosure takes place in the U.S., is treated as an ‘export’ of the technical data — which would require a license from the Department of State in addition to imposing other regulatory burdens on the exporter,” Sundahl said.

Freed from this regulatory requirement will make it easier for Virgin Galactic, as well as others, to sell tickets.