Industrial Policy & Trade Monitor· 2663 actions· ✨ 89 recent

Ukraine's President signed Decree No. 871/2025 on 29 November 2025, enacting an NSDC decision "On the Application of Personal Special Economic and Other Restrictive Measures (Sanctions)" against a list of Russian legal entities and individuals identified by the Security Service of Ukraine (SBU) as involved in the production, supply, or operational support of unmanned aerial vehicles (UAVs/drones) used by Russia. The decree imposes asset freezes and restrictions on commercial transactions and investment instruments with the designated parties. It entered into force on 2 December 2025, the date of official publication.

On 16 August 2025, Ukraine's President signed Decree No. 599/2025, enacting an NSDC decision "On the Application of Personal Special Economic and Other Restrictive Measures (Sanctions)" against 39 individuals and 55 legal entities identified as involved in developing, manufacturing, or supplying components for Russian unmanned aerial vehicles (UAVs) with artificial-intelligence elements. The list covers 43 Russian entities (including drone makers Prognatik, Rozumni Ptakhy, Zala Aero, and KB Vostok, plus AI research centres Neurolab and TsBST), 10 Chinese suppliers of navigation receivers, engines, cameras, and microchips (including Dongguan Standard Trading, Zhejiang Lianxing Machinery, Shenzhen Sky Bow Navigation Technology, and Topscom Precision Industry), and 2 Belarusian component suppliers. Sanctions impose asset freezes and restrictions on commercial transactions and investment instruments, entered into force immediately upon signature and revocable no later than 15 August 2035.

Federal Law No. 297-FZ, adopted 31 July 2025, amends Article 150 of the Russian Tax Code to add a new exemption (clause 23) from import VAT for engines, spare parts and components imported into Russia for the construction, repair or modernization of civilian unmanned aerial vehicles with a maximum take-off weight between 0.15 and 30 kg. The exemption also covers printed technical publications and prototype components necessary for developing or testing such UAVs and their engines. The measure takes effect 1 October 2025 and is intended to lower input costs for Russia's domestic civilian-drone manufacturing base, which has scaled up sharply since 2022 alongside the country's military UAV program.

The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to implement changes to the Missile Technology Control Regime (MTCR) Annex agreed at Technical Experts Meetings in 2018, 2019, and 2021, revising six ECCNs (1C111, 2A101, 2B119, 6A107, 9A101, and 9E515). The rule simultaneously expands license exception eligibility for MT-controlled items — adding one new authorization and broadening four existing exceptions — for exports to allies and partners not in Country Groups D:4 or D:5. BIS estimates the changes will reduce MT-related license applications by approximately 400 per year, easing compliance burden on defence and aerospace exporters dealing with allied governments.

The Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) on 8 February 2022 to add 33 persons — all based in China — to the Unverified List (UVL) under EAR §744.15(c), on the basis that BIS could not satisfactorily complete end-use checks for these entities for reasons outside US Government control. Placement on the UVL bars exporters from using any EAR license exception when shipping controlled items to listed parties and requires exporters to obtain a certified UVL Statement from the entity or secure a BIS export licence. Sectors represented include semiconductor manufacturing equipment, optoelectronics, UAVs, specialty chemicals, and biotechnology.