Rossiya Airlines, Pilotov St 18-4, St. Petersburg, Russia, 196210, 70780-70782 [2022-25265]
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70780
Federal Register / Vol. 87, No. 223 / Monday, November 21, 2022 / Notices
addressed to the FTZ Board’s Executive
Secretary and sent to: ftz@trade.gov. The
closing period for their receipt is
January 20, 2023. Rebuttal comments in
response to material submitted during
the foregoing period may be submitted
during the subsequent 15-day period to
February 6, 2023.
A copy of the application will be
available for public inspection in the
‘‘Online FTZ Information Section’’
section of the FTZ Board’s website,
which is accessible via www.trade.gov/
ftz. For further information, contact
Christopher Kemp at
Christopher.Kemp@trade.gov.
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
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.
Dated: November 15, 2022.
Andrew McGilvray,
Executive Secretary.
II. Renewal of the TDO
[FR Doc. 2022–25269 Filed 11–18–22; 8:45 am]
BILLING CODE 3510–DS–P
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.
lotter on DSK11XQN23PROD with NOTICES1
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
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. § 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).
VerDate Sep<11>2014
21:25 Nov 18, 2022
Jkt 259001
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
2 The TDO was published in the Federal Register
on May 25, 2022 (87 FR 31856).
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Fmt 4703
Sfmt 4703
exert influence on the world stage.
Effective February 24, 2022, BIS
imposed expansive controls on aviationrelated (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.
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
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).
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.
E:\FR\FM\21NON1.SGM
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70781
Federal Register / Vol. 87, No. 223 / Monday, November 21, 2022 / Notices
on flights within Russia, potentially in
violation of Section 736.2(b)(10) of the
Regulations.
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
Tail No.
RA–73292
RA–73292
RA–73292
RA–73292
RA–73292
RA–73279
RA–73279
RA–73279
RA–73279
RA–73279
RA–73218
RA–73218
RA–73218
RA–73218
RA–73218
RA–73191
RA–73191
RA–73191
RA–73191
RA–73193
RA–73193
RA–73193
RA–73193
RA–73193
Serial No.
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28531
28531
28531
28531
28531
28515
28515
28515
28515
28515
35278
35278
35278
35278
35278
33622
33622
33622
33622
33602
33602
33602
33602
33602
Aircraft type
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
777–312 (B773)
737–8Q8 (B738)
737–8Q8 (B738)
737–8Q8 (B738)
737–8Q8 (B738)
737–8Q8 (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
737–8AS (B738)
III. Findings
lotter on DSK11XQN23PROD with NOTICES1
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
VerDate Sep<11>2014
21:25 Nov 18, 2022
Jkt 259001
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
Departure/arrival cities
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Frm 00012
Dates
Moscow, RU/Anadyr, RU ....................................
Anadyr, RU/Moscow, RU ....................................
Khaborovsk, RU/Moscow, RU ............................
Moscow, RU/Khaborovsk, RU ............................
Moscow, RU/Anadyr, RU ....................................
Magadan, RU/Moscow, RU ................................
Moscow, RU/Magadan, RU ................................
Magadan, RU/Moscow, RU ................................
Moscow, RU/Magadan, RU ................................
Khaborovsk, RU/Moscow, RU ............................
Antalya, TR/Moscow, RU ....................................
Istanbul, TR/Moscow, RU ...................................
Kaliningrad, RU/Moscow, RU .............................
Moscow, RU/Kaliningrad, RU .............................
Kaliningrad, RU/Moscow, RU .............................
Antalya, TR/Moscow, RU ....................................
Istanbul, TR/St. Petersburg, RU .........................
Moscow, RU/Krasnoyarsk, RU ...........................
Krasnoyarsk, RU/Irkutsk, RU ..............................
Antalya, TR/Moscow, RU ....................................
Istanbul, TR/Moscow, RU ...................................
Antalya, TR/Moscow, RU ....................................
Antalya, TR/Moscow, RU ....................................
Istanbul, TR/St. Petersburg, RU .........................
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
PO 00000
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:
Fmt 4703
Sfmt 4703
November 10, 2022.
November 7, 2022.
November 5, 2022.
November 4, 2022.
October 30, 2022.
October 17, 2022.
October 17, 2022.
October 18, 2022.
October 23, 2022.
October 31, 2022.
November 12, 2022.
November 11, 2022.
September 29, 2022.
September 28, 2022.
September 28, 2022.
November 1, 2022.
November 2, 2022.
November 4, 2022.
November 5, 2022.
November 3, 2022.
November 4, 2022.
November 5, 2022.
November 8, 2022.
November 9, 2022.
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 (incountry) 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;
E:\FR\FM\21NON1.SGM
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70782
Federal Register / Vol. 87, No. 223 / Monday, November 21, 2022 / Notices
lotter on DSK11XQN23PROD with NOTICES1
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
VerDate Sep<11>2014
21:25 Nov 18, 2022
Jkt 259001
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
Act), on September 29, 2022, Commerce
published its affirmative final
determinations in the countervailing
duty investigations of OCTG from Korea
and Russia.1 On November 14, 2022, the
ITC notified Commerce of its affirmative
final determinations that an industry in
the United States is materially injured
within the meaning of section
705(b)(1)(A)(i) of the Act, by reason of
subsidized imports of subject
merchandise from Korea and Russia.2
Scope of the Orders
DEPARTMENT OF COMMERCE
International Trade Administration
[C–580–913, C–821–834]
Oil Country Tubular Goods From the
Republic of Korea and the Russian
Federation: Countervailing Duty
Orders
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final
determinations by the U.S. Department
of Commerce (Commerce) and the U.S.
International Trade Commission (ITC),
Commerce is issuing countervailing
duty orders on oil country tubular goods
(OCTG) from the Republic of Korea
(Korea) and the Russian Federation
(Russia).
AGENCY:
DATES:
Applicable November 21, 2022.
FOR FURTHER INFORMATION CONTACT:
Melissa Porpotage (Korea) and Theodore
Pearson (Russia), AD/CVD Operations,
Offices I and II, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1413 and (202) 482–2631,
respectively.
SUPPLEMENTARY INFORMATION:
Background
In accordance with section 705(d) of
the Tariff Act of 1930, as amended (the
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Frm 00013
Fmt 4703
Sfmt 4703
The products covered by these orders
are OCTG from Korea and Russia. For a
complete description of the scope of the
orders, see the appendix to this notice.
Countervailing Duty Orders
As noted above, on November 14,
2022, in accordance with section 705(d)
of the Act, the ITC notified Commerce
of its final determinations in these
investigations, in which it found that an
industry in the United States is
materially injured by reason of
subsidized imports of OCTG from Korea
and Russia.3 Therefore, in accordance
with section 705(c)(2) of the Act,
Commerce is issuing these
countervailing duty orders. Because the
ITC determined that imports of OCTG
from Korea and Russia are materially
injuring a U.S. industry, unliquidated
entries of such merchandise from Korea
and Russia, entered or withdrawn from
warehouse for consumption, are subject
to the assessment of countervailing
duties.
1 See Oil Country Tubular Goods from the
Republic of Korea: Final Affirmative Countervailing
Duty Determination, 87 FR 59056 (September 29,
2022) (Korea Final Determination); see also Oil
Country Tubular Goods from the Russian
Federation: Final Affirmative Countervailing Duty
Determination and Final Negative Critical
Circumstances Determination, 87 FR 59057
(September 29, 2022).
2 See ITC Letter, ‘‘Chairman Transmittal of
Determinations to Commerce,’’ dated November 14,
2022.
3 Id.
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Agencies
[Federal Register Volume 87, Number 223 (Monday, November 21, 2022)]
[Notices]
[Pages 70780-70782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\2\ The TDO was published in the Federal Register on May 25,
2022 (87 FR 31856).
---------------------------------------------------------------------------
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:
----------------------------------------------------------------------------------------------------------------
Departure/arrival
Tail No. Serial No. Aircraft type cities Dates
----------------------------------------------------------------------------------------------------------------
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.
----------------------------------------------------------------------------------------------------------------
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