1067. Do the prohibitions imposed by the determination made pursuant to Executive Order (E.O.) 14071 on May 8, 2022, “Prohibitions Related to Certain Accounting, Trust and Corporate Formation, and Management Consulting Services” (“the determination”), prohibit U.S. persons from providing software related to accounting, management consulting, or trust and corporate formation to persons located in the Russian Federation? 

The determination does not prohibit U.S. persons from exporting, reexporting, selling, or supplying, directly or indirectly, software to the Russian Federation, nor does the determination prohibit U.S. persons from providing services associated with the export of such software, such as software design and engineering, provided that such associated services do not fall within the categories of management consulting, accounting, or trust and corporate formation. 
For example, the following scenario describes activities that would not be prohibited under the determination:

• A U.S. software company signs a contract with a company located in the Russian Federation (“Russian company”) for design, engineering, licensing, and delivery of software that the Russian company uses to perform its internal accounting.  As part of the contract, the U.S. company provides continuing updates and technical support services related to the software (setting up new users, troubleshooting errors, etc.).

The following scenarios illustrate activities that would be prohibited under the determination:

• A U.S. management consulting company signs a contract with a Russian company to assist the Russian company in selecting a new enterprise application software.  This contract includes assessing the needs of the Russian company, providing a list of possible software choices to the company, and providing continuing advisory services on the implementation and use of the software to optimize the Russian company’s profits.