Aalto University

Risk matrix for export control and sanctions matters

The risk matrix for export control and sanctions matters has two main variables - research domain and partners. It is a simplified illustration of the key aspects - research domain and partners - that play a role in the assessment of any research activity from export control and sanctions point of view. Both aspects are relevant for the identification of risk factors pertaining to a research activity.

The variables

Research domain

What is being researched?
What is the expected output?

Partners

In both institutional and non-institutional collaboration:

Who are the collaboration partners?
Where are they from?
What do they do?
What are their objectives?

Be concerned of the red boxes

Avoid collaboration in high-risk research domains with high-risk partners as there is a significant risk that the collaboration qualifies as export or provision of technical assistance that requires prior permit from the authorities. In the event the law imposes licensing requirement for actions associated with a research activity such actions are illegal if done without the license or in contradiction to the terms of the license received.

Oftentimes a permit will not be granted even if applied for.

In general, be cautious with any high-risk partner. The cautious approach should be applied also in case of low-risk research domains. Research collaboration with a high-risk partner needs to be considered case by case. Some research activities falling in low-risk research domains can be legitimately done with high-risk partners. This is typically the case where basic scientific research is carried out with a non-designated partner university in an EU sanctioned country. If the collaboration partner is from EU-sanctioned country restrictions imposed against such country in the relevant EU sanction program needs to be reviewed and complied with.

Note!

Each Aalto researcher is responsible for controlling the risk profile of his/her research, i.e. what is being researched, and who are involved in the research activity as collaborators. The researcher knows best what is being researched by him/her and the partners involved in the researcher's research activities. Consequently, the researcher is in the best position to control the risk profile of his/her research.

The researcher has to thoroughly identify his/her research’s risk profile and take adequate risk identification and mitigation measures – this cannot be ignored or (fully) outsourced to Aalto’s service units. How much researcher needs to consider them depends on research domain (low risk or high risk) and collaboration partners (low risk or high risk)

Research domain and partner aspects further explored

Low-risk research domains and low-risk partners

Most of the research done at Aalto qualifies as low-risk in the above matrix. It is not possible to give any listings of research domains that would be in a safe harbor but typically any research that genuinely qualifies as basic scientific research is low-risk. Please see more information about basic scientific research in Export of controlled items - Exemptions from export license requirements (De-controls) | Aalto University.

Vast majority of the partners engaged in research done at Aalto qualify as low-risk in the above matrix.

High-risk research domain

High-risk research domains are such research domains where items (physical goods, specific information, software) being researched or generated as outcome of a research activity are controlled under law as

Dual-use items ¹^,²^,³
Military items ¹^,²; or
Sanctioned items in relevant EU sanction program (if your research activity has connections to a sanctioned or embargo country against which restriction is imposed)

Please see Impact of export control and sanctions regulation on academic personnel for more information on topics to be considered by a researcher during the life span of a research project.

High-risk partner

High risk partner is anyone who qualifies for or is involved in any of the following circumstances:

The partner is a designated party or is connected to a designated party via employment, ownership or control (please see more information on EU sanctions programs | Aalto University)
Prohibited end-uses such as proliferation of weapons of mass destruction or their means of delivery, destabilizing accumulation of conventional weapons, internal repression or violations of human rights and international humanitarian law; or
End-user(s) whose intent is to divert items to prohibited end-uses (see above) or prohibited destinations (such as embargo countries)
The partner is an institution or other entity established in a sanctioned or embargo country or a person affiliated to such entity. Whether the partner is high-risk or not in this situation depends on the scope of research and if the scope of research is affected by the sanction program imposed against that country. If a member of the Aalto community is contemplating, or if a member of the Aalto community is involved in, collaboration with a partner referred to in this bullet point the member of the Aalto community needs to ascertain from the relevant EU sanction program that the collaboration with the partner is not caught by the sanctions, and therefore restricted.

Designated party is a legal person (such as university) or a natural person (individual) against whom sanctions are imposed, meaning that such party is mentioned on a sanction list maintained by the authorities. Please see EU Sanctions Map and CSL Search (trade.gov) for sanction screening.

Please note that there are different designations with different effects. Designation of a legal or natural person by EU entails extensive prohibition to engage in economic activities with the designated party (or its employees if the designated party is a legal person). These economic activities typically include institutional research collaboration and they may include also non-institutional collaboration. Designation by the US authorities of a legal person or natural person on so called SDN list (Specially Designated Nationals and Blocked Persons List) will effectively prevent Aalto from collaborating with such person (or its employees if the designated party is a legal person). Designation on so called Entity List by the US authorities does not prevent all collaboration with such person (or its employees if the designated party is a legal person) but imposes certain restrictions such as individual licensing requirements and policies supplemental to those found elsewhere in the US regulation concerning US origin items.

In export control and sanctions not all countries are equal – the geopolitical situation impacts on the depth and extent of restrictions imposed against a country