Under Executive Order (E.O.) 14071, "Prohibiting New Investment in and Certain Services to the Russian Federation in Response to Continued Russian Federation," U.S. persons are prohibited from providing certain services to persons located in the Russian Federation. How will OFAC define those categories of services?
OFAC's answer
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. As of April 12, 2024, categories of services identified pursuant to E.O. 14071 include: Categories of ServicesDate of DeterminationDate of EffectivenessDefinitionsAccounting; Trust and corporate formation services; Management consulting[May 8, 2022](https://ofac.treasury.gov/media/922956/download?inline)June 7, 2022[FAQ 1034](https://ofac.treasury.gov/faqs/1034)Quantum computing[September 15, 2022](https://ofac.treasury.gov/media/926591/download?inline)October 15, 2022[FAQ 1084](https://ofac.treasury.gov/faqs/1084)Trading/commodities brokering, financing, shipping, insurance including reinsurance and protection and indemnity, flagging, and customs brokering services as they relate to the maritime transport of crude oil of Russian Federation origin[December 5, 2022](https://ofac.treasury.gov/media/929501/download?inline)December 5, 2022[OFAC Guidance on Implementation of the Price Cap Policy](https://ofac.treasury.gov/media/931036/download?inline)Trading/commodities brokering, financing, shipping, insurance including reinsurance and protection and indemnity, flagging, and customs brokering services as they relate to the maritime transport of petroleum products of Russian Federation origin[February 5, 2023](https://ofac.treasury.gov/media/931021/download?inline)February 5, 2023[OFAC Guidance on Implementation of the Price Cap Policy](https://ofac.treasury.gov/media/931036/download?inline)Architecture; Engineering [May 19, 2023](https://ofac.treasury.gov/media/931776/download?inline)June 18, 2023See belowCovered metals acquisition services[April 12, 2024](https://ofac.treasury.gov/media/932801/download?inline)April 13, 2024See belowInformation Technology (IT) consultancy and design services[June 12, 2024](https://ofac.treasury.gov/media/932951/download?inline)September 12, 2024[FAQ 1187](https://ofac.treasury.gov/faqs/1187)Cloud-based services for enterprise management software and design and manufacturing software[June 12, 2024](https://ofac.treasury.gov/media/932951/download?inline)September 12, 2024[FAQ 1187](https://ofac.treasury.gov/faqs/1187)IT support services for enterprise management software and design and manufacturing software[June 12, 2024](https://ofac.treasury.gov/media/932951/download?inline)September 12, 2024[FAQ 1187](https://ofac.treasury.gov/faqs/1187)OFAC expects to promulgate regulations that define the terms architecture services, engineering services, and covered metals acquisition services consistent with the following: Architecture services include advisory services; pre-design services; design services, including schematic design, design development, and final design; contract administration services; combined architectural design and contract administration services; including post construction services; and all other services requiring the expertise of architects. The prohibition applies to such services as they relate to residential, institutional, leisure, commercial, and industrial buildings and structures; recreational areas; transportation infrastructure; land subdivisions; and not necessarily related to a new construction project. The term also includes urban planning services (i.e., land use, site selection, and servicing of land for systemic, coordinated urban development) and landscape architectural services. OFAC intends to interpret this term consistent with UN Central Product Classification (CPC) Codes 86711-86704, 86719, and 86741-86742. Engineering services include assistance, advisory, consultative, design, and recommendation services concerning engineering matters or during any phase of an engineering project. Engineering design services may be for: the construction of foundations and building structures (i.e., structural engineering); mechanical and electrical installations for buildings; the construction of civil engineering works; industrial processes and production; or other engineering designs, such as those for acoustics, vibration, traffic control systems, or prototype development for new products. The term additionally includes geotechnical, groundwater, and corrosion engineering services; integrated engineering services, such as those for transportation infrastructure or other projects; engineering-related scientific and technical consulting services, including geological, geophysical, geochemical, surface or subsurface surveying, and map making services; testing and analysis services of chemical, biological, and physical properties of materials or of integrated mechanical and electrical systems; and technical inspection services. OFAC intends to interpret this term consistent with UN CPC Codes 86721-86727, 86729, 86731-86733, 86739, 86751-86754, 86761-86764, and 86769. Additionally, OFAC does not consider maritime classification services to be subject to the prohibition, as is consistent with the [OFAC Guidance on Implementation of the Price Cap Policy for Crude Oil and Petroleum Products of Russian Federation Origin](https://ofac.treasury.gov/media/931036/download?inline). Covered metals acquisition services means warranting services for aluminum, copper, or nickel of Russian Federation origin on a global metal exchange and services to acquire aluminum, copper, or nickel of Russian Federation origin as part of the physical settlement of a derivative contract. "Warranting services" refers to issuing, registering, accepting, or acquiring a warrant or the underlying metal on a global metal exchange (i.e., a commodities exchange that provides infrastructure and services for the international trading of base metal derivatives contracts). Examples of such global metal exchanges include, but are not limited to, the Chicago Mercantile Exchange, the London Metal Exchange, and the Shanghai Futures Exchange. "Warrant" means an electronic record or physical document of title to, possession of, or rights in respect of a specified lot of metal (including where such metal is held in a third country within a global metal exchange-approved warehouse). A warrant is created or issued in accordance with the rules of a global metal exchange. Updated: June 12, 2024
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- #1034For the purposes of the determination of May 8, 2022 made pursuant to Executive Order (E.O.) 14071, “Prohibitions Related to Certain Accounting, Trust and Corporate Formation, and Management Consulting Services,” what is meant by the terms “accounting,” “trust and corporate formation,” and “management consulting” services?
- #1084For the purposes of the determination of September 15, 2022 made pursuant to Executive Order (E.O.) 14071, “Prohibitions Related to Certain Quantum Computing Services” (“the determination”), what is meant by the term “quantum computing services”?
- #1187How does OFAC intend to interpret the following terms in the determination, “Prohibition on Certain Information Technology and Software Services,” pursuant to Executive Order (E.O.) 14071 (the “IT and Software Services Determination”): “enterprise management software,” “design and manufacturing software,” “cloud-based services,” “information technology support services,” and “information technology consultancy and design services”?