OFAC Issues Guidance on Exclusions Under Russia IT, Software Services Restrictions

The Office of Foreign Assets Control this week issued new guidance about the exclusions available under Russia-related information technology and software services restrictions that took effect Sept. 12.

That IT and Software Services Determination, issued by OFAC in June (see 2406120036), places restrictions on certain direct and indirect exports, reexports and sales involving certain IT consultancy and design services, and certain IT support services or cloud-based services with Russia. A new FAQ describes the exclusions available under the determination, including for certain services related to software subject to the Export Administration Regulations.

The exclusions mean “that U.S. persons can continue to provide, for example, IT support services and cloud-based services, including Software-as-a-Service (SaaS), for enterprise management software and design and manufacturing software (collectively, ‘Covered Software’), if such software is or would be authorized or licensed by Commerce,” the FAQ said.

This exclusion may cover services for covered software for “certain civil end users that are wholly owned subsidiaries, branches, sales offices, or joint ventures of companies headquartered in the United States or countries from Country Group A:5 and A:6,” it said. “Commerce’s amended regulations come into effect on September 16, 2024.”

Questions about whether specific software is excluded by Commerce under the IT and Software Services Determination should be directed to the Bureau of Industry and Security, OFAC said.

The agency updated a separate FAQ on restrictions surrounding management consulting services to reflect the new guidance.