September 30, 2022

Treasury Issues Determinations on Quantum Computing Services in Russia

On September 15, 2022, the Division of the Treasury issued a Determination pursuant to E.O. 14071 that prohibits the exportation, reexportation, sale, or offer, instantly or indirectly, from the United States, or by a U.S. person, wherever found, of quantum computing solutions to any human being situated in the Russian Federation. This perseverance will just take effect on October 15, 2022, and excludes: (i) any companies to an entity positioned in Russia that is owned or controlled by a U.S. particular person, or (ii) any companies relevant to the wind down or divestiture of an entity located in Russia that is not owned or managed by a Russian particular person. In conjunction with this dedication, the Office environment of International Property Control’s (OFAC) issued a similar Perseverance pursuant to E.O. 14024 which enables for sanctions to be imposed on any individual or entity established to operate or have operated in this sector of the Russian Federation economic climate. Any these types of sanctioned individuals or entities will be put on 1 of the OFAC sanctions lists.

In a series of new FAQs, OFAC states that the definition of quantum computing sector of the Russian economic system consists of “activities similar to goods and companies in or involving the Russian Federation in investigation, improvement, manufacturing, assembling, upkeep, fix, sale, or offer of quantum computing, quantum computers, electronic assemblies thereof, or cryogenic refrigeration systems relevant to quantum computing.” OFAC interprets this time period to contain any of the following services when connected to quantum computing: infrastructure, web hosting or information processing solutions tailor made pc programming providers pc devices integration design providers personal computer methods and details processing services management products and services computing infrastructure, info processing products and services, internet hosting products and services, and connected providers fixing personal computer, personal computer peripherals, and communication devices other laptop-connected solutions as well as the exportation, reexportation, sale, or supply, directly or indirectly, of quantum computing, quantum computers, electronic assemblies thereof, or cryogenic refrigeration methods connected to quantum computing to or from the Russian Federation.

Ultimately, OFAC has amended many other FAQs which have formerly been released relating to earlier Treasury determinations about accounting, rely on and corporate formation, and administration consulting companies in the Russian Federation. These FAQs have been revised to involve and be responsive to the new determinations covering quantum computing products and services.