Addition of Entities and Revision of Entry on the Entity List, 37901-37904 [2021-15362]
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Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Rules and Regulations
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[FR Doc. 2021–15219 Filed 7–16–21; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 210707–0145]
RIN 0694–AI53
Addition of Entities and Revision of
Entry on the Entity List
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
In this rule, the Bureau of
Industry and Security (BIS) amends the
Export Administration Regulations
(EAR) by adding six entities to the
Entity List. These six entities, all of
which are being added under the
destination of Russia, have been
determined by the U.S. Government to
be acting contrary to the national
security or foreign policy interests of the
United States and are being added
consistent with Executive Order 14024,
Blocking Property With Respect To
Specified Harmful Foreign Activities of
the Government of the Russian
Federation, issued on April 15, 2021.
This rule also corrects one existing entry
on the Entity List under the destination
of Russia.
DATES: This rule is effective July 19,
2021.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
lotter on DSK11XQN23PROD with RULES1
FDC No.
Chair, End-User Review Committee,
Office of the Assistant Secretary, Export
Administration, Bureau of Industry and
Security, Department of Commerce,
Phone: (202) 482–5991, Fax: (202) 482–
3911, Email: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
The Entity List (supplement no. 4 to
part 744 of the EAR) identifies entities
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for which there is reasonable cause to
believe, based on specific and
articulable facts, that the entities have
been involved, are involved, or pose a
significant risk of being or becoming
involved in activities contrary to the
national security or foreign policy
interests of the United States. The EAR
(15 CFR parts 730–774) impose
additional license requirements on, and
limit the availability of most license
exceptions for, exports, reexports, and
transfers (in-country) to listed entities.
The license review policy for each listed
entity is identified in the ‘‘License
Review Policy’’ column on the Entity
List, and the impact on the availability
of license exceptions is described in the
relevant Federal Register document
adding entities to the Entity List. BIS
places entities on the Entity List
pursuant to part 744 (Control Policy:
End-User and End-Use Based) and part
746 (Embargoes and Other Special
Controls) of the EAR.
The End-User Review Committee
(ERC), composed of representatives of
the Departments of Commerce (Chair),
State, Defense, Energy and, where
appropriate, the Treasury, makes all
decisions regarding additions to,
removals from, or other modifications to
the Entity List and the MEU List. The
ERC makes all decisions to add an entry
to the Entity List and MEU List by
majority vote and all decisions to
remove or modify an entry by
unanimous vote. The Departments
represented on the ERC approved these
changes to the Entity List.
Entity List Decisions
A. Entity Additions Consistent With
Executive Order 14024
In this final rule, six entities are
added to the Entity List on the basis of
activities that are described in Executive
Order (E.O.) 14024 (86 FR 20249, April
19, 2021), Blocking Property With
Respect To Specified Harmful Foreign
Activities of the Government of the
Russian Federation, issued on April 15,
2021. In E.O. 14024, the President found
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Subject
that specified harmful foreign activities
of the Russian government constitute an
unusual and extraordinary threat to the
national security, foreign policy, and
economy of the United States. In issuing
E.O. 14024, the President declared a
national emergency to deal with this
threat.
E.O. 14024 elevates the U.S.
government’s capacity to deploy
strategic and economically impactful
sanctions to deter and respond to
Russia’s destabilizing behavior and to
counter Russia’s harmful foreign
activities that threaten the national
security and foreign policy of the United
States, including: Undermining the
conduct of free and fair elections and
democratic institutions in the United
States and its allies and partners;
engaging in and facilitating malicious
cyber activities against the United States
and its allies and partners that threaten
the free flow of information; fostering
and using transnational corruption to
influence foreign governments; pursuing
extraterritorial activities targeting
dissidents or journalists; undermining
security in countries and regions
important to the United States’ national
security; and violating well-established
principles of international law,
including respect for the territorial
integrity of states. To address these
threats, E.O. 14024 authorizes sanctions
on a wide range of persons, including,
among others, those operating in the
technology and defense and related
materiel sectors of the Russian economy
and in any additional sectors of the
Russian economy as may be determined
by the Secretary of the Treasury, in
consultation with the Secretary of State.
The Department of the Treasury’s
Office of Foreign Assets Control (OFAC)
has designated the following six entities
as being within the scope of E.O. 14024:
Aktsionernoe Obshchestvo AST;
Aktsionernoe Obshchestvo Pasit;
Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz; Federal State
Autonomous Institution Military
Innovative Technopolis Era; Federal
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Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Rules and Regulations
lotter on DSK11XQN23PROD with RULES1
State Autonomous Scientific
Establishment Scientific Research
Institute Specialized Security
Computing Devices and Automation;
and Obshchestvo S Ogranichennoi
Otvetstvennostyu NEOBIT. OFAC’s first
use of E.O. 14024 targeted companies
operating in the technology sector of the
Russian economy that support Russian
intelligence services.
In conjunction with OFAC’s
designation, BIS is taking concurrent
action to ensure the efficacy of existing
sanctions on Russia that target
aggressive and harmful activities by the
Russian government. BIS is adding the
six entities designated by OFAC—
Aktsionernoe Obshchestvo AST;
Aktsionernoe Obshchestvo Pasit;
Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz; Federal State
Autonomous Institution Military
Innovative Technopolis Era; Federal
State Autonomous Scientific
Establishment Scientific Research
Institute Specialized Security
Computing Devices and Automation;
and Obshchestvo S Ogranichennoi
Otvetstvennostyu NEOBIT—to the
Entity List, and is imposing a license
requirement for exports, reexports, or
transfers (in-country) of all items subject
to the EAR to these blocked persons.
This concurrent action by BIS will
complement the actions already taken
by OFAC by ensuring that U.S.
sanctions on these entities will apply to
all items subject to the EAR regardless
of whether a U.S. person is involved in
the transaction or whether the
transaction involves the U.S. financial
system. BIS imposes a license review
policy of a presumption of denial for
these six entities. In addition, no license
exceptions are available for exports,
reexports, or transfers (in-country) to the
persons being added to the Entity List
in this rule. This license requirement
implements an appropriate measure
within the authority of the EAR to carry
out the provisions of E.O. 14024.
Russia
• Aktsionernoe Obshchestvo AST;
• Aktsionernoe Obshchestvo Pasit;
• Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz;
• Federal State Autonomous
Institution Military Innovative
Technopolis Era;
• Federal State Autonomous
Scientific Establishment Scientific
Research Institute Specialized Security
Computing Devices and Automation;
and
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• Obshchestvo S Ogranichennoi
Otvetstvennostyu NEOBIT.
B. Correction to the Entity List
This final rule implements a
correction to one existing entry on the
Entity List under Russia. The correction
is for the entity, Federal Security
Service (FSB). This entity was added to
the EAR on January 4, 2017 (82 FR 724,
January 4, 2017). The License
Requirement for this entity applies to all
items subject to the EAR, apart from
items that are related to transactions
that are authorized by OFAC pursuant
to their February 2, 2017, General
License No. 1 (‘‘Authorizing Certain
Transactions with the Federal Security
Service’’). Effective March 2, 2021,
General License No. 1A, dated March
15, 2018, was replaced and superseded
in its entirety by General License No. 1B
(‘‘Authorizing Certain Transactions with
the Federal Security Service’’). This
final rule corrects the existing entry’s
License Requirement column by
inserting General License 1B for
reference to OFAC’s General License
No. 1, and amends the effective date
from February 2, 2017, to the current
effective date of March 2, 2021.
Savings Clause
Shipments of items removed from
eligibility for a License Exception or
export, reexport, or transfer (in-country)
without a license (NLR) as a result of
this regulatory action that were en route
aboard a carrier to a port of export,
reexport, or transfer (in-country), on
July 19, 2021, pursuant to actual orders
for export, reexport, or transfer (incountry) to or within a foreign
destination, may proceed to that
destination under the previous
eligibility for a License Exception or
export, reexport, or transfer (in-country)
without a license (NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President
signed into law the John S. McCain
National Defense Authorization Act for
Fiscal Year 2019, which included the
Export Control Reform Act of 2018
(ECRA) (50 U.S.C. 4801–4852). ECRA
provides the legal basis for BIS’s
principal authorities and serves as the
authority under which BIS issues this
rule.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
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alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This final rule has been
designated to be not significant for
purposes of E.O. 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to or be subject to a penalty
for failure to comply with a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This regulation
involves collections previously
approved by OMB under control
number 0694–0088, Simplified Network
Application Processing System, which
includes, among other things, license
applications, and carries a burden
estimate of 29.6 minutes for a manual or
electronic submission. Total burden
hours associated with the PRA and
OMB control number 0694–0088 are not
expected to increase as a result of this
rule.
3. This rule does not contain policies
with federalism implications as that
term is defined in E.O. 13132.
4. Pursuant to section 1762 of ECRA
(see 50 U.S.C. 4821), this action is
exempt from the Administrative
Procedure Act (5 U.S.C. 553)
requirements for notice of proposed
rulemaking, opportunity for public
participation, and delay in effective
date.
5. Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule by 5 U.S.C. 553, or
by any other law, the analytical
requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are
not applicable. Accordingly, no
regulatory flexibility analysis is required
and none has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping
requirements, Terrorism.
Accordingly, part 744 of the Export
Administration Regulations (15 CFR
parts 730–774) is amended as follows:
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Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Rules and Regulations
PART 744—[AMENDED]
1. The authority citation for part 744
continues to read as follows:
■
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR
45167, 3 CFR, 1998 Comp., p. 208; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001
Country
2. Supplement No. 4 to part 744 is
amended in the table under RUSSIA:
■ a. By adding in alphabetical order
entries for ‘‘Aktsionernoe Obshchestvo
AST’’, ‘‘Aktsionernoe Obshchestvo
Pasit’’, and ‘‘Aktsionernoe Obshchestvo
Pozitiv Teknolodzhiz’’;
■ b. By revising the entry for ‘‘Federal
Security Service (FSB)’’; and
■ c. By adding in alphabetical order
entries for ‘‘Federal State Autonomous
■
License
requirement
Entity
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RUSSIA ............
lotter on DSK11XQN23PROD with RULES1
Comp., p. 786; Notice of September 18, 2020,
85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November
13, 2020).
*
Federal State Autonomous Institution
Military Innovative Technopolis Era,
a.k.a., the following two aliases:
—ERA Military Innovation Technopolis;
and
—FGAU VIT ERA.
Pionerskiy Prospekt, 41 Anapa
Krasnodar Krai 353456, Russia.
Federal State Autonomous Scientific
Establishment Scientific Research Institute Specialized Security Computing Devices and Automation,
a.k.a., the following one alias:
—FGANU NII Specvuzavtomatika.
Rostov-On-Don, Russia.
*
*
Obshchestvo S Ogranichennoi
Otvetstvennostyu NEOBIT, a.k.a., the
following one alias:
—NEOBIT, OOO.
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Supplement No. 4 to Part 744—Entity
List
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License
review policy
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Aktsionernoe Obshchestvo AST, a.k.a.,
the following one alias:
—Advanced Systems Technology, AO.
d. 3k2 str. 4 etazh 5 kom. 55, shosse
Kashirskoe, Moscow 115230, Russia.
Aktsionernoe Obshchestvo Pasit,
a.k.a., the following one alias:
—Pasit, AO.
Avenue Leninsky, Building 30, Premise
IA, Moscow, 11934, Russia.
Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz, a.k.a., the following
two aliases:
—JSC Positive Technologies; and
—Pozitiv Teknolodzhiz, AO.
d. 23A pom. V kom, 30, shosse
Shchelkovskoe, Moscow, 107241,
Russia.
*
*
Federal Security Service (FSB), a.k.a.,
the following one alias:
—Federalnaya Sluzhba Bezopasnosti.
Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; and
Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia.
Institution Military Innovative
Technopolis Era’’, ‘‘Federal State
Autonomous Scientific Establishment
Scientific Research Institute Specialized
Security Computing Devices and
Automation’’, and ‘‘Obshchestvo S
Ogranichennoi Otvetstvennostyu
NEOBIT’’.
The additions and revision read as
follows:
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Federal Register
citation
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*
For all items subject to
the EAR. (See § 744.11
of the EAR).
*
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Presumption of denial ......
*
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021.
For all items subject to
the EAR. (See § 744.11
of the EAR).
Presumption of denial ......
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021
For all items subject to
the EAR. (See § 744.11
of the EAR).
Presumption of denial. .....
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021.
*
For all items subject to
the EAR (see § 744.11
of the EAR), apart from
items that are related to
transactions that are
authorized by the Department of the Treasury’s Office of Foreign
Assets Control pursuant
to General License No.
1B of March 2, 2021.
For all items subject to
the EAR. (See § 744.11
of the EAR).
*
*
Presumption of denial ......
*
82 FR 724, 1/4/17.
82 FR 18219, 4/18/17.
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021.
Presumption of denial ......
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021.
For all items subject to
the EAR. (See § 744.11
of the EAR).
Presumption of denial ......
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021.
*
For all items subject to
the EAR. (See § 744.11
of the EAR).
*
*
Presumption of denial ......
*
86 FR [INSERT FR PAGE
NUMBER] July 19,
2021.
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Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Rules and Regulations
Country
License
requirement
Entity
d. 21 litera G, ul. Gzhatskaya, St. Petersburg, 195220, Russia.
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Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 2021–15362 Filed 7–16–21; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 589
Publication of Ukraine-Related Web
General License 14 and Subsequent
Iterations
Office of Foreign Assets
Control, Treasury.
ACTION: Publication of web general
licenses.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing six
Ukraine-related web general licenses
(GLs) in the Federal Register: GL 14, GL
14A, GL 14B, GL 14C, GL 14D, and GL
14E, each of which is now expired and
was previously issued on OFAC’s
website.
SUMMARY:
GL 14E expired on January 28,
2019. See SUPPLEMENTARY INFORMATION
of this rule for additional relevant dates.
ADDRESSES: Electronic availability: This
document and additional information
concerning OFAC are available on
OFAC’s website www.treasury.gov/ofac.
FOR FURTHER INFORMATION CONTACT:
OFAC: Assistant Director for
Licensing, 202–622–2480; Assistant
Director for Regulatory Affairs, 202–
622–4855; or Assistant Director for
Sanctions Compliance & Evaluation,
202–622–2490.
SUPPLEMENTARY INFORMATION:
DATES:
lotter on DSK11XQN23PROD with RULES1
Background
On March 6, 2014, the President,
invoking the authority of, inter alia, the
International Emergency Economic
Powers Act (50 U.S.C. 1701–1706)
(IEEPA), issued Executive Order (E.O.)
13660, ‘‘Blocking Property of Certain
Persons Contributing to the Situation in
Ukraine’’ (79 FR 13493, March 10,
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16:14 Jul 16, 2021
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License
review policy
*
*
*
*
*
*
*
*
2014). In E.O. 13660, the President
determined that the actions and policies
of persons including persons who have
asserted governmental authority in the
Crimean region without the
authorization of the Government of
Ukraine that undermine democratic
processes and institutions in Ukraine;
threaten its peace, security, stability,
sovereignty, and territorial integrity; and
contribute to the misappropriation of its
assets, constitute an unusual and
extraordinary threat to the national
security and foreign policy of the United
States, and declared a national
emergency to deal with that threat.
The President subsequently issued
E.O. 13661 of March 16, 2014,
‘‘Blocking Property of Additional
Persons Contributing to the Situation in
Ukraine’’ (79 FR 15535, March 19,
2014), and E.O. 13662 of March 20,
2014, ‘‘Blocking Property of Additional
Persons Contributing to the Situation in
Ukraine’’ (79 FR 16169, March 24,
2014), pursuant to the national
emergency declared in E.O. 13660. E.O.
13661 and E.O. 13662 expanded the
scope of the national emergency
declared in E.O. 13660. On May 8, 2014,
OFAC published the Ukraine Related
Sanctions Regulations, 31 CFR part 589
(the ‘‘Regulations’’), to implement E.O.
13660, E.O. 13661, and E.O. 13662 (79
FR 26365, May 8, 2014). The President
has issued additional Executive orders
pursuant to the national emergency
declared in E.O. 13660, and expanded
in E.O. 13661 and E.O. 13662, which are
not discussed in this publication as they
are not relevant to the web GLs being
published.
OFAC, in consultation with the
Department of State, issued GL 14 on
April 23, 2018, pursuant to the
Regulations, to authorize certain
transactions and activities ordinarily
incident and necessary to the
maintenance or wind down of
operations, contracts, or other
agreements involving United Company
RUSAL PLC, or any other entity in
which United Company RUSAL PLC
owns, directly or indirectly, a 50
percent or greater interest, and that were
in effect prior to April 6, 2018, through
12:01 a.m. eastern daylight time,
October 23, 2018.
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citation
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Subsequently, OFAC issued five
further iterations of GL 14, each of
which extended the period the
authorizations in GL 14 remained in
effect: On September 21, 2018, OFAC
issued GL 14A, which replaced and
superseded GL 14, and extended the
authorizations through 12:01 a.m.
eastern standard time, November 12,
2018; on October 12, 2018, OFAC issued
GL 14B, which replaced and superseded
GL 14A, and extended the
authorizations through 12:01 a.m.
eastern standard time, December 12,
2018; on November 9, 2018, OFAC
issued GL 14C, which replaced and
superseded GL 14B, and extended the
authorizations through 12:01 a.m.
eastern standard time, January 7, 2019;
on December 7, 2018, OFAC issued GL
14D, which replaced and superseded GL
14C, and extended the authorizations
through 12:01 a.m. eastern standard
time, January 21, 2019; and on January
16, 2019, OFAC issued GL 14E, which
replaced and superseded GL 14D, and
extended the authorizations through
12:01 a.m. eastern standard time,
January 28, 2019. Following the
delisting of United Company RUSAL
PLC on January 27, 2019, OFAC
authorization was no longer required to
transact with the company or any other
entity in which United Company
RUSAL PLC owns, directly or
indirectly, a 50 percent or greater
interest. The texts of GLs 14, 14A, 14B,
14C, 14D, and 14E are provided below.
OFFICE OF FOREIGN ASSETS
CONTROL
Ukraine-Related Sanctions Regulations
31 CFR Part 589
General License No. 14
Authorizing Certain Activities
Necessary to Maintenance or Wind
Down of Operations or Existing
Contracts With United Company
RUSAL PLC
(a) Except as provided in paragraphs
(b) and (c) of this general license, all
transactions and activities otherwise
prohibited by the Ukraine Related
Sanctions Regulations, 31 CFR part 589,
that are ordinarily incident and
necessary to the maintenance or wind
down of operations, contracts, or other
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]]>Agencies
[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Rules and Regulations]
[Pages 37901-37904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15362]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 210707-0145]
RIN 0694-AI53
Addition of Entities and Revision of Entry on the Entity List
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) by adding six entities to
the Entity List. These six entities, all of which are being added under
the destination of Russia, have been determined by the U.S. Government
to be acting contrary to the national security or foreign policy
interests of the United States and are being added consistent with
Executive Order 14024, Blocking Property With Respect To Specified
Harmful Foreign Activities of the Government of the Russian Federation,
issued on April 15, 2021. This rule also corrects one existing entry on
the Entity List under the destination of Russia.
DATES: This rule is effective July 19, 2021.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary, Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Fax: (202) 482-3911, Email: [email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List (supplement no. 4 to part 744 of the EAR)
identifies entities for which there is reasonable cause to believe,
based on specific and articulable facts, that the entities have been
involved, are involved, or pose a significant risk of being or becoming
involved in activities contrary to the national security or foreign
policy interests of the United States. The EAR (15 CFR parts 730-774)
impose additional license requirements on, and limit the availability
of most license exceptions for, exports, reexports, and transfers (in-
country) to listed entities. The license review policy for each listed
entity is identified in the ``License Review Policy'' column on the
Entity List, and the impact on the availability of license exceptions
is described in the relevant Federal Register document adding entities
to the Entity List. BIS places entities on the Entity List pursuant to
part 744 (Control Policy: End-User and End-Use Based) and part 746
(Embargoes and Other Special Controls) of the EAR.
The End-User Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, where
appropriate, the Treasury, makes all decisions regarding additions to,
removals from, or other modifications to the Entity List and the MEU
List. The ERC makes all decisions to add an entry to the Entity List
and MEU List by majority vote and all decisions to remove or modify an
entry by unanimous vote. The Departments represented on the ERC
approved these changes to the Entity List.
Entity List Decisions
A. Entity Additions Consistent With Executive Order 14024
In this final rule, six entities are added to the Entity List on
the basis of activities that are described in Executive Order (E.O.)
14024 (86 FR 20249, April 19, 2021), Blocking Property With Respect To
Specified Harmful Foreign Activities of the Government of the Russian
Federation, issued on April 15, 2021. In E.O. 14024, the President
found that specified harmful foreign activities of the Russian
government constitute an unusual and extraordinary threat to the
national security, foreign policy, and economy of the United States. In
issuing E.O. 14024, the President declared a national emergency to deal
with this threat.
E.O. 14024 elevates the U.S. government's capacity to deploy
strategic and economically impactful sanctions to deter and respond to
Russia's destabilizing behavior and to counter Russia's harmful foreign
activities that threaten the national security and foreign policy of
the United States, including: Undermining the conduct of free and fair
elections and democratic institutions in the United States and its
allies and partners; engaging in and facilitating malicious cyber
activities against the United States and its allies and partners that
threaten the free flow of information; fostering and using
transnational corruption to influence foreign governments; pursuing
extraterritorial activities targeting dissidents or journalists;
undermining security in countries and regions important to the United
States' national security; and violating well-established principles of
international law, including respect for the territorial integrity of
states. To address these threats, E.O. 14024 authorizes sanctions on a
wide range of persons, including, among others, those operating in the
technology and defense and related materiel sectors of the Russian
economy and in any additional sectors of the Russian economy as may be
determined by the Secretary of the Treasury, in consultation with the
Secretary of State.
The Department of the Treasury's Office of Foreign Assets Control
(OFAC) has designated the following six entities as being within the
scope of E.O. 14024: Aktsionernoe Obshchestvo AST; Aktsionernoe
Obshchestvo Pasit; Aktsionernoe Obshchestvo Pozitiv Teknolodzhiz;
Federal State Autonomous Institution Military Innovative Technopolis
Era; Federal
[[Page 37902]]
State Autonomous Scientific Establishment Scientific Research Institute
Specialized Security Computing Devices and Automation; and Obshchestvo
S Ogranichennoi Otvetstvennostyu NEOBIT. OFAC's first use of E.O. 14024
targeted companies operating in the technology sector of the Russian
economy that support Russian intelligence services.
In conjunction with OFAC's designation, BIS is taking concurrent
action to ensure the efficacy of existing sanctions on Russia that
target aggressive and harmful activities by the Russian government. BIS
is adding the six entities designated by OFAC--Aktsionernoe Obshchestvo
AST; Aktsionernoe Obshchestvo Pasit; Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz; Federal State Autonomous Institution Military Innovative
Technopolis Era; Federal State Autonomous Scientific Establishment
Scientific Research Institute Specialized Security Computing Devices
and Automation; and Obshchestvo S Ogranichennoi Otvetstvennostyu
NEOBIT--to the Entity List, and is imposing a license requirement for
exports, reexports, or transfers (in-country) of all items subject to
the EAR to these blocked persons. This concurrent action by BIS will
complement the actions already taken by OFAC by ensuring that U.S.
sanctions on these entities will apply to all items subject to the EAR
regardless of whether a U.S. person is involved in the transaction or
whether the transaction involves the U.S. financial system. BIS imposes
a license review policy of a presumption of denial for these six
entities. In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) to the persons being added to the
Entity List in this rule. This license requirement implements an
appropriate measure within the authority of the EAR to carry out the
provisions of E.O. 14024.
Russia
Aktsionernoe Obshchestvo AST;
Aktsionernoe Obshchestvo Pasit;
Aktsionernoe Obshchestvo Pozitiv Teknolodzhiz;
Federal State Autonomous Institution Military Innovative
Technopolis Era;
Federal State Autonomous Scientific Establishment
Scientific Research Institute Specialized Security Computing Devices
and Automation; and
Obshchestvo S Ogranichennoi Otvetstvennostyu NEOBIT.
B. Correction to the Entity List
This final rule implements a correction to one existing entry on
the Entity List under Russia. The correction is for the entity, Federal
Security Service (FSB). This entity was added to the EAR on January 4,
2017 (82 FR 724, January 4, 2017). The License Requirement for this
entity applies to all items subject to the EAR, apart from items that
are related to transactions that are authorized by OFAC pursuant to
their February 2, 2017, General License No. 1 (``Authorizing Certain
Transactions with the Federal Security Service''). Effective March 2,
2021, General License No. 1A, dated March 15, 2018, was replaced and
superseded in its entirety by General License No. 1B (``Authorizing
Certain Transactions with the Federal Security Service''). This final
rule corrects the existing entry's License Requirement column by
inserting General License 1B for reference to OFAC's General License
No. 1, and amends the effective date from February 2, 2017, to the
current effective date of March 2, 2021.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export, reexport, or transfer (in-country) without a license (NLR)
as a result of this regulatory action that were en route aboard a
carrier to a port of export, reexport, or transfer (in-country), on
July 19, 2021, pursuant to actual orders for export, reexport, or
transfer (in-country) to or within a foreign destination, may proceed
to that destination under the previous eligibility for a License
Exception or export, reexport, or transfer (in-country) without a
license (NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities
and serves as the authority under which BIS issues this rule.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This final rule has been designated to be not significant for purposes
of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license applications, and carries a burden estimate of
29.6 minutes for a manual or electronic submission. Total burden hours
associated with the PRA and OMB control number 0694-0088 are not
expected to increase as a result of this rule.
3. This rule does not contain policies with federalism implications
as that term is defined in E.O. 13132.
4. Pursuant to section 1762 of ECRA (see 50 U.S.C. 4821), this
action is exempt from the Administrative Procedure Act (5 U.S.C. 553)
requirements for notice of proposed rulemaking, opportunity for public
participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required and none
has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
[[Page 37903]]
PART 744--[AMENDED]
0
1. The authority citation for part 744 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of September 18, 2020, 85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November 13, 2020).
0
2. Supplement No. 4 to part 744 is amended in the table under RUSSIA:
0
a. By adding in alphabetical order entries for ``Aktsionernoe
Obshchestvo AST'', ``Aktsionernoe Obshchestvo Pasit'', and
``Aktsionernoe Obshchestvo Pozitiv Teknolodzhiz'';
0
b. By revising the entry for ``Federal Security Service (FSB)''; and
0
c. By adding in alphabetical order entries for ``Federal State
Autonomous Institution Military Innovative Technopolis Era'', ``Federal
State Autonomous Scientific Establishment Scientific Research Institute
Specialized Security Computing Devices and Automation'', and
``Obshchestvo S Ogranichennoi Otvetstvennostyu NEOBIT''.
The additions and revision read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
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License License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
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RUSSIA................. * * * * * *
Aktsionernoe Obshchestvo For all items Presumption of 86 FR [INSERT FR
AST, a.k.a., the following subject to the denial. PAGE NUMBER]
one alias: EAR. (See Sec. July 19, 2021.
--Advanced Systems 744.11 of the
Technology, AO. EAR).
d. 3k2 str. 4 etazh 5 kom.
55, shosse Kashirskoe,
Moscow 115230, Russia.
Aktsionernoe Obshchestvo For all items Presumption of 86 FR [INSERT FR
Pasit, a.k.a., the subject to the denial. PAGE NUMBER]
following one alias: EAR. (See Sec. July 19, 2021
--Pasit, AO. 744.11 of the
EAR).
Avenue Leninsky, Building
30, Premise IA, Moscow,
11934, Russia.
Aktsionernoe Obshchestvo For all items Presumption of 86 FR [INSERT FR
Pozitiv Teknolodzhiz, subject to the denial.. PAGE NUMBER]
a.k.a., the following two EAR. (See Sec. July 19, 2021.
aliases: 744.11 of the
EAR).
--JSC Positive Technologies;
and
--Pozitiv Teknolodzhiz, AO.
d. 23A pom. V kom, 30,
shosse Shchelkovskoe,
Moscow, 107241, Russia.
* * * * * *
Federal Security Service For all items Presumption of 82 FR 724, 1/4/
(FSB), a.k.a., the subject to the denial. 17.
following one alias: EAR (see Sec. 82 FR 18219, 4/18/
--Federalnaya Sluzhba 744.11 of the 17.
Bezopasnosti. EAR), apart from 86 FR [INSERT FR
Ulitsa Kuznetskiy Most, Dom items that are PAGE NUMBER]
22, Moscow 107031, Russia; related to July 19, 2021.
and Lubyanskaya Ploschad, transactions that
Dom 2, Moscow 107031, are authorized by
Russia. the Department of
the Treasury's
Office of Foreign
Assets Control
pursuant to
General License
No. 1B of March
2, 2021.
Federal State Autonomous For all items Presumption of 86 FR [INSERT FR
Institution Military subject to the denial. PAGE NUMBER]
Innovative Technopolis Era, EAR. (See Sec. July 19, 2021.
a.k.a., the following two 744.11 of the
aliases: EAR).
--ERA Military Innovation
Technopolis; and
--FGAU VIT ERA.
Pionerskiy Prospekt, 41
Anapa Krasnodar Krai
353456, Russia.
Federal State Autonomous For all items Presumption of 86 FR [INSERT FR
Scientific Establishment subject to the denial. PAGE NUMBER]
Scientific Research EAR. (See Sec. July 19, 2021.
Institute Specialized 744.11 of the
Security Computing Devices EAR).
and Automation, a.k.a., the
following one alias:
--FGANU NII
Specvuzavtomatika.
Rostov-On-Don, Russia.
* * * * * *
Obshchestvo S Ogranichennoi For all items Presumption of 86 FR [INSERT FR
Otvetstvennostyu NEOBIT, subject to the denial. PAGE NUMBER]
a.k.a., the following one EAR. (See Sec. July 19, 2021.
alias: 744.11 of the
--NEOBIT, OOO. EAR).
[[Page 37904]]
d. 21 litera G, ul.
Gzhatskaya, St. Petersburg,
195220, Russia.
* * * * * *
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* * * * * * *
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* * * * *
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-15362 Filed 7-16-21; 8:45 am]
BILLING CODE 3510-33-P
