Notice2022-25265
Rossiya Airlines, Pilotov St 18-4, St. Petersburg, Russia, 196210
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 21, 2022
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Full Text
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<title>Federal Register, Volume 87 Issue 223 (Monday, November 21, 2022)</title>
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[Federal Register Volume 87, Number 223 (Monday, November 21, 2022)]
[Notices]
[Pages 70780-70782]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25265]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Rossiya Airlines, Pilotov St 18-4, St. Petersburg, Russia, 196210
Order Renewing Temporary Denial of Export Privileges
Pursuant to Section 766.24 of the Export Administration
Regulations, 15 CFR parts 730-774 (2021) (``EAR'' or ``the
Regulations''),\1\ I hereby grant the request of the Office of Export
Enforcement (``OEE'') to renew the temporary denial order (``TDO'')
issued in this matter on May 20, 2022. I find that renewal of this
order is necessary in the public interest to prevent an imminent
violation of the Regulations.
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\1\ On August 13, 2018, the President signed into law the John
S. McCain National Defense Authorization Act for Fiscal Year 2019,
which includes the Export Control Reform Act of 2018, 50 U.S.C.
4801-4852 (``ECRA''). While Section 1766 of ECRA repeals the
provisions of the Export Administration Act, 50 U.S.C. App. Sec.
2401 et seq. (``EAA''), (except for three sections which are
inapplicable here), Section 1768 of ECRA provides, in pertinent
part, that all orders, rules, regulations, and other forms of
administrative action that were made or issued under the EAA,
including as continued in effect pursuant to to the International
Emergency Economic Powers Act, 50 U.S.C. 1701 et seq. (``IEEPA''),
and were in effect as of ECRA's date of enactment (August 13, 2018),
shall continue in effect according to their terms until modified,
superseded, set aside, or revoked through action undertaken pursuant
to the authority provided under ECRA. Moreover, Section 1761(a)(5)
of ECRA authorizes the issuance of temporary denial orders. 50
U.S.C. 4820(a)(5).
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I. Procedural History
On May 20, 2022, I signed an order denying the export privileges of
Rossiya Airlines (``Rossiya'') for a period of 180 days on the ground
that issuance of the order was necessary in the public interest to
prevent an imminent violation of the Regulations. The order was issued
ex parte pursuant to Section 766.24(a) of the Regulations and was
effective upon issuance.\2\
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\2\ The TDO was published in the Federal Register on May 25,
2022 (87 FR 31856).
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On October 24, 2022, BIS, through OEE, submitted a written request
for renewal of the TDO that issued on May 20, 2022. The written request
was made more than 20 days before the TDO's scheduled expiration. A
copy of the renewal request was sent to Rossiya in accordance with
Sections 766.5 and 766.24(d) of the Regulations. No opposition to the
renewal of the TDO has been received.
II. Renewal of the TDO
A. Legal Standard
Pursuant to Section 766.24, BIS may issue an order temporarily
denying a respondent's export privileges upon a showing that the order
is necessary in the public interest to prevent an ``imminent
violation'' of the Regulations, or any order, license or authorization
issued thereunder. 15 CFR 766.24(b)(1) and 766.24(d). ``A violation may
be `imminent' either in time or degree of likelihood.'' 15 CFR
766.24(b)(3). BIS may show ``either that a violation is about to occur,
or that the general circumstances of the matter under investigation or
case under criminal or administrative charges demonstrate a likelihood
of future violations.'' Id. As to the likelihood of future violations,
BIS may show that the violation under investigation or charge ``is
significant, deliberate, covert and/or likely to occur again, rather
than technical or negligent[.]'' Id. A ``lack of information
establishing the precise time a violation may occur does not preclude a
finding that a violation is imminent, so long as there is sufficient
reason to believe the likelihood of a violation.'' Id.
B. The TDO and BIS's Request for Renewal
The U.S. Commerce Department, through BIS, responded to the Russian
Federation's (``Russia's'') further invasion of Ukraine by implementing
a sweeping series of stringent export controls that severely restrict
Russia's access to technologies and other items that it needs to
sustain its aggressive military capabilities. These controls primarily
target Russia's defense, aerospace, and maritime sectors and are
intended to cut off Russia's access to vital technological inputs,
atrophy key sectors of its industrial base, and undercut Russia's
strategic ambitions to exert influence on the world stage. Effective
February 24, 2022, BIS imposed expansive controls on aviation-related
(e.g., Commerce Control List Categories 7 and 9) items to Russia,
including a license requirement for the export, reexport or transfer
(in-country) to Russia of any aircraft or aircraft parts specified in
Export Control Classification Number (ECCN) 9A991 (Section 746.8(a)(1)
of the EAR).\3\ BIS will review any export or reexport license
applications for such items under a policy of denial. See Section
746.8(b). Effective March 2, 2022, BIS excluded any aircraft registered
in, owned, or controlled by, or under charter or lease by Russia or a
national of Russia from being eligible for license exception Aircraft,
Vessels, and Spacecraft (AVS) (Section 740.15 of the EAR).\4\
Accordingly, any U.S.-origin aircraft or foreign aircraft that includes
more than 25% controlled U.S.-origin content, and that is registered
in, owned, or controlled by, or under charter or lease by Russia or a
national of Russia, is subject to a license requirement before it can
travel to Russia.
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\3\ 87 FR 12226 (Mar. 3, 2022). Additionally, BIS published a
final rule effective April 8, 2022, which imposed licensing
requirements on items controlled on the Commerce Control List
(``CCL'') under Categories 0-2 that are destined for Russia or
Belarus. Accordingly, now all CCL items require export, reexport,
and transfer (in-country) licenses if destined for or within Russia
or Belarus. 87 FR 22130 (Apr. 14, 2022).
\4\ 87 FR 13048 (Mar. 8, 2022).
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OEE's request for renewal is based upon the facts underlying the
issuance of the initial TDO and the evidence developed over the course
of this investigation, which indicate a blatant disregard for U.S.
export controls, as well as the TDO. Specifically, the initial TDO,
issued on May 20, 2022, was based on evidence that Rossiya engaged in
conduct prohibited by the Regulations by operating multiple aircraft
subject to the EAR and classified under ECCN 9A991.b on flights into
Russia after March 2, 2022, from destinations including but not limited
to, Hurghada, Egypt; Sharm el-Sheikh, Egypt; Dubai, United Arab
Emirates; and Sharjah, United Arab Emirates, without the required BIS
authorization.\5\ Further evidence submitted by BIS indicated that
Rossiya was continuing to operate aircraft subject to the EAR
domestically
[[Page 70781]]
on flights within Russia, potentially in violation of Section
736.2(b)(10) of the Regulations.
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\5\ Publicly available flight tracking information shows that on
March 8, 2022, serial number (SN) 27650 flew from Hurghada, Egypt to
Moscow, Russia. On March 6, 2022, SN 41212 flew from Sharm el-
Sheikh, Egypt to St. Petersburg, Russia and SN 44435 flew from
Dubai, United Arab Emirates to St. Petersburg, Russia. In addition,
on March 7, 2022, SN 41202 flew from Sharjah, United Arab Emirates
to Moscow, Russia.
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In its October 24, 2022, request for renewal of the TDO, BIS has
submitted evidence that Rossiya continues to operate in violation of
the May 20, 2022 TDO and/or the Regulations by operating aircraft
subject to the EAR and classified under ECCN 9A991.b. Specifically,
BIS's evidence and related investigation indicated that after the
issuance of the TDO, Rossiya continued to fly aircraft into Russia in
violation of the EAR including flights from Antalya and Istanbul,
Turkey. Furthermore, Rossiya has continued to operate aircraft subject
to the EAR, which were flown into Russia on or after March 2, 2022, on
flights within Russia, including, but not limited to, between such
cities as Anadyr, Russia; Kaliningrad, Russia; Khaborovsk, Russia;
Magadan, Russia; and Moscow, Russia, in violation of Section
736.2(b)(10) of the Regulations. Information about those flights
includes, but is not limited to, the following:
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Departure/arrival
Tail No. Serial No. Aircraft type cities Dates
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RA-73292......................... 28531 777-312 (B773)..... Moscow, RU/Anadyr, November 10, 2022.
RU.
RA-73292......................... 28531 777-312 (B773)..... Anadyr, RU/Moscow, November 7, 2022.
RU.
RA-73292......................... 28531 777-312 (B773)..... Khaborovsk, RU/ November 5, 2022.
Moscow, RU.
RA-73292......................... 28531 777-312 (B773)..... Moscow, RU/ November 4, 2022.
Khaborovsk, RU.
RA-73292......................... 28531 777-312 (B773)..... Moscow, RU/Anadyr, October 30, 2022.
RU.
RA-73279......................... 28515 777-312 (B773)..... Magadan, RU/Moscow, October 17, 2022.
RU.
RA-73279......................... 28515 777-312 (B773)..... Moscow, RU/Magadan, October 17, 2022.
RU.
RA-73279......................... 28515 777-312 (B773)..... Magadan, RU/Moscow, October 18, 2022.
RU.
RA-73279......................... 28515 777-312 (B773)..... Moscow, RU/Magadan, October 23, 2022.
RU.
RA-73279......................... 28515 777-312 (B773)..... Khaborovsk, RU/ October 31, 2022.
Moscow, RU.
RA-73218......................... 35278 737-8Q8 (B738)..... Antalya, TR/Moscow, November 12, 2022.
RU.
RA-73218......................... 35278 737-8Q8 (B738)..... Istanbul, TR/ November 11, 2022.
Moscow, RU.
RA-73218......................... 35278 737-8Q8 (B738)..... Kaliningrad, RU/ September 29, 2022.
Moscow, RU.
RA-73218......................... 35278 737-8Q8 (B738)..... Moscow, RU/ September 28, 2022.
Kaliningrad, RU.
RA-73218......................... 35278 737-8Q8 (B738)..... Kaliningrad, RU/ September 28, 2022.
Moscow, RU.
RA-73191......................... 33622 737-8AS (B738)..... Antalya, TR/Moscow, November 1, 2022.
RU.
RA-73191......................... 33622 737-8AS (B738)..... Istanbul, TR/St. November 2, 2022.
Petersburg, RU.
RA-73191......................... 33622 737-8AS (B738)..... Moscow, RU/ November 4, 2022.
Krasnoyarsk, RU.
RA-73191......................... 33622 737-8AS (B738)..... Krasnoyarsk, RU/ November 5, 2022.
Irkutsk, RU.
RA-73193......................... 33602 737-8AS (B738)..... Antalya, TR/Moscow, November 3, 2022.
RU.
RA-73193......................... 33602 737-8AS (B738)..... Istanbul, TR/ November 4, 2022.
Moscow, RU.
RA-73193......................... 33602 737-8AS (B738)..... Antalya, TR/Moscow, November 5, 2022.
RU.
RA-73193......................... 33602 737-8AS (B738)..... Antalya, TR/Moscow, November 8, 2022.
RU.
RA-73193......................... 33602 737-8AS (B738)..... Istanbul, TR/St. November 9, 2022.
Petersburg, RU.
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III. Findings
Under the applicable standard set forth in Section 766.24 of the
Regulations and my review of the entire record, I find that the
evidence presented by BIS convincingly demonstrates that Rossiya has
acted in violation of the Regulations and the TDO; that such violations
have been significant, deliberate and covert; and that given the
foregoing and the nature of the matters under investigation, there is a
likelihood of imminent violations. Therefore, renewal of the TDO is
necessary in the public interest to prevent imminent violation of the
Regulations and to give notice to companies and individuals in the
United States and abroad that they should avoid dealing with Rossiya,
in connection with export and reexport transactions involving items
subject to the Regulations and in connection with any other activity
subject to the Regulations.
IV. Order
It is therefore ordered:
First, Rossiya Airlines, Pilotov St 18-4, St. Petersburg, Russia,
196210, when acting for or on their behalf, any successors or assigns,
agents, or employees may not, directly or indirectly, participate in
any way in any transaction involving any commodity, software or
technology (hereinafter collectively referred to as ``item'') exported
or to be exported from the United States that is subject to the EAR, or
in any other activity subject to the EAR including, but not limited to:
A. Applying for, obtaining, or using any license (except directly
related to safety of flight), license exception, or export control
document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the EAR except directly related to
safety of flight and authorized by BIS pursuant to Section 764.3(a)(2)
of the Regulations, or engaging in any other activity subject to the
EAR except directly related to safety of flight and authorized by BIS
pursuant to Section 764.3(a)(2) of the Regulations; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is subject to
the EAR, or from any other activity subject to the EAR except directly
related to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export, reexport, or transfer (in-country) to or on behalf of
Rossiya any item subject to the EAR except directly related to safety
of flight and authorized by BIS pursuant to Section 764.3(a)(2) of the
Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by Rossiya of the ownership, possession, or control of any
item subject to the EAR that has been or will be exported from the
United States, including financing or other support activities related
to a transaction whereby Rossiya acquires or attempts to acquire such
ownership, possession or control except directly related to safety of
flight and authorized by BIS pursuant to Section 764.3(a)(2) of the
Regulations;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from Rossiya of any item subject to the EAR
that has been exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations;
[[Page 70782]]
D. Obtain from Rossiya in the United States any item subject to the
EAR with knowledge or reason to know that the item will be, or is
intended to be, exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations; or
E. Engage in any transaction to service any item subject to the EAR
that has been or will be exported from the United States and which is
owned, possessed or controlled by Rossiya, or service any item, of
whatever origin, that is owned, possessed or controlled by Rossiya if
such service involves the use of any item subject to the EAR that has
been or will be exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations. For purposes of this paragraph,
servicing means installation, maintenance, repair, modification, or
testing.
Third, that, after notice and opportunity for comment as provided
in section 766.23 of the EAR, any other person, firm, corporation, or
business organization related to Rossiya by ownership, control,
position of responsibility, affiliation, or other connection in the
conduct of trade or business may also be made subject to the provisions
of this Order.
In accordance with the provisions of Sections 766.24(e) of the EAR,
Rossiya may, at any time, appeal this Order by filing a full written
statement in support of the appeal with the Office of the
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40
South Gay Street, Baltimore, Maryland 21202-4022.
In accordance with the provisions of Section 766.24(d) of the EAR,
BIS may seek renewal of this Order by filing a written request not
later than 20 days before the expiration date. A renewal request may be
opposed by Rossiya as provided in Section 766.24(d), by filing a
written submission with the Assistant Secretary of Commerce for Export
Enforcement, which must be received not later than seven days before
the expiration date of the Order.
A copy of this Order shall be provided to Rossiya, and shall be
published in the Federal Register.
This Order is effective immediately and shall remain in effect for
180 days.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2022-25265 Filed 11-18-22; 8:45 am]
BILLING CODE 3510-DT-P
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</html>Indexed from Federal Register on November 21, 2022.
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