Last updated: 24 February 2025

This guidance note is produced by the Australian Sanctions Office (ASO) within the Department of Foreign Affairs and Trade (DFAT). This document should not be used as a substitute for legal advice. Users are responsible for ensuring compliance with sanctions laws.

Overview

This guidance note details the restrictions on exporting certain goods to Russia and specified regions of Ukraine (Crimea, Sevastopol, Luhansk, and Donetsk) and sanctioned services relating to a sanctioned supply or associated activities. It also outlines the responsibilities of individuals and businesses to take reasonable precautions and exercise due diligence to ensure adherence to these export prohibitions.

Glossary

What are export-sanctioned goods and sanctioned services?

Under Australian sanctions law, it is prohibited to supply, sell or transfer certain goods ('export-sanctioned goods') to another person, with the direct or indirect result that the goods are transferred to, for the benefit of, or use in Russia or specified regions of Ukraine (Crimea, Sevastopol, Luhansk and Donetsk) ('sanctioned supply'). The purpose of these sanctions is to ensure that Australian goods are not supporting Russia's illegal and immoral invasion of Ukraine.

Australian sanctions law also prohibits the provision of certain services if it assists with, or is provided in relation to, the supply, sale or transfer of export-sanctioned goods to Russia or specified regions of Ukraine. Additionally, Australian sanctions law prohibits the provision of certain services to Russia or specified regions of Ukraine, or a person for use in those places. This includes services relating to the manufacture, maintenance or use of export-sanctioned goods in specified regions of Ukraine. The term 'services' could capture a broad range of activities including providing technical advice, assistance or training.

What goods are export-sanctioned goods for Russia and specified regions of Ukraine?

The full list of export-sanctioned goods is detailed in the following legislation:

• Autonomous Sanctions Regulations 2011
• Autonomous Sanctions (Export Sanctioned Goods—Russia) Designation 2022
• Autonomous Sanctions (Export Sanctioned Goods—Specified Ukraine Regions) Designation 2023
• Autonomous Sanctions (Russia, Crimea and Sevastopol) Specification 2015

The legislation may be updated from time to time as additional categories of goods are added or removed. For example, on 25 October 2023 the 'Export Machinery Ban' was implemented by designating a wide range of goods for Russia and specified regions of Ukraine, including industrial and electrical machinery and equipment, tools, pumps and boilers. On 24 February 2025, unmanned aircraft (drones) and components of drones (AHECC headings 8806 and 8807) were also designated as export sanctioned goods for Russia and specified regions of Ukraine.

Most export-sanctioned goods in relation to Russia and specified regions of Ukraine are specified by reference to the Australian Harmonized Export Commodity Classification (AHECC) available on the Australian Bureau of Statistics website. The table at Appendix A is provided as a handy reference to identify chapters of the AHECC which contain product codes that have been specified as export-sanctioned goods for Russia and specified regions of Ukraine as at 24 February 2025. Regulated entities (including manufacturers, exporters, brokers, distributors and freight forwarders) that deal in goods appearing in these chapters should consult the relevant legislative instrument to determine which products are export-sanctioned goods and in what circumstances. In addition to consulting this table, regulated entities should keep in mind that any good that meets the definition of 'arms and related matériel' is an export-sanctioned good for Russia  regardless of AHECC code (see Factsheet: Arms or Related Matériel for further information).

What do I need to do?

All regulated entities, including those that deal in goods that are specified as export-sanctioned for Russia and specified regions of Ukraine, and those that provide technical, financial and other services in relation to these goods, should take reasonable precautions and exercise due diligence to avoid sanctions contraventions. Importantly, sanctions offences are strict liability offences for bodies corporate (including corporate government agencies), meaning that it is not necessary to prove any fault element (intent, knowledge, recklessness or negligence). Therefore, even if the goods are exported without the intention of supplying to an end-user in Russia or specified regions of Ukraine, the exporter may still be liable if the goods are ultimately transferred to Russia or a specified region of Ukraine. Exporters should be mindful that goods transferred to Russia or a specified region of Ukraine during transit is also prohibited, even where the final destination is in a non-sanctioned country or part of a country. The following section ('How can I mitigate sanctions risks?') provides further guidance.

In addition, regulated entities should be aware of Russia's attempts to procure Australian goods to support its war effort. For more information see: Advisory Note – Australian export sector, Russian evasion methods.

How can I mitigate sanctions risks?

It is a defence to a strict liability offence if a body corporate demonstrates it took reasonable precautions and exercised due diligence to avoid contravening sanctions laws.

In the sanctions context, reasonable precautions and due diligence are not defined terms but generally refer to the steps and measures a regulated entity must take to ensure it is not engaging in sanctioned activities. However, what is objectively 'reasonable' is highly context-dependent and can vary based on factors such as the size and nature of the business, the complexity of its transactions, and the specific geographic regions and sanctions regulations involved.

The focus of regulated entities should be to understand and manage the risk of contravening sanctions laws as effectively as possible. By understanding the risks that a regulated entity faces, it can develop more effective sanctions compliance procedures. This involves implementing robust internal policies, procedures, and controls that are tailored to the specific risks faced by the business. For example, regulated entities should regularly screen goods, customers, and partners for sanctions risks, ensure staff are well-trained, and keep their compliance procedures updated and regularly audited. Further, regulated entities should regularly monitor relevant legislation and the DFAT website to remain informed of any changes or updates to sanctions laws.

In the context of managing sanctions risks around export-sanctioned goods, regulated entities should include consideration of the following two factors:

• The goods – Regulated entities should be aware of the export prohibitions applicable to certain goods going to Russia and specified regions of Ukraine, or for use in, or for the benefit of those regions. You can see which goods are prohibited for export on the DFAT website. The prohibitions may apply to parts of goods as well as assembled goods. You should remain aware of the relevant AHECC code descriptions that may be applicable to either.
• The end-user – If the end-user has links to Russia or specified regions of Ukraine, you should take steps to confirm that the goods will not ultimately be transferred to Russia or specified regions of Ukraine. Seeking assurances from end‑users such as through end-user or end-use certificates will assist in remaining compliant with Australian sanctions laws.
• The end use – if the goods have an actual military end use, or a military end user, the goods are likely to be considered 'arms or related matériel', regardless of the nature of the goods, or whether they appear on the DSGL. 

Sanctions compliance is an ongoing obligation rather than a one-time assessment. Sanctions measures and associated risks are constantly evolving, requiring regulated entities to continuously monitor and reassess their compliance strategies. Regulated entities are encouraged to seek independent legal advice tailored to their specific situations and ensure thorough due diligence in all activities.

For more information see:

• Sanctions Compliance Toolkit
• Sanctions Risk Assessment

Sanctions permits

A sanctions permit is an authorisation from the Minister for Foreign Affairs (or the Minister's delegate) to undertake an activity that would otherwise be prohibited under Australian sanctions law. More detailed information on Australia's sanctions frameworks, including the specific criteria for granting permits under each framework, can be found on the DFAT website.

Penalties for sanctions offences

Sanctions offences are punishable by:

• For an individual - up to 10 years in prison and/or a fine of 2500 penalty units ($825,000 as of 7 November 2024) or three times the value of the transaction(s) (whichever is the greater).
• For a body corporate – a fine of up to 10,000 penalty units ($3.30 million as of 7 November 2024) or three times the value of the transaction(s) (whichever is the greater).

The offences are strict liability offences for bodies corporate, meaning that it is not necessary to prove any fault element (intent, knowledge, recklessness or negligence) for a body corporate to be found guilty. However, an offence is not committed if a body corporate can demonstrate that it took reasonable precautions, and exercised due diligence, to avoid contravening Australia's autonomous sanctions laws.

Further information and Resources

Further information is available on the Department's website and in ASO guidance notes on specific sanctions topics. If you have any questions, you can make an enquiry through Pax.

Appendix A

AHECC references for export-sanctioned goods for Russia and specified regions of Ukraine