Order Renewing Temporary Denial of Export Privileges; Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya obl., g. Ob, prospekt Mozzherina, d. 10 ofis 201, 78921-78923 [2022-27985]

Download as PDF Federal Register / Vol. 87, No. 246 / Friday, December 23, 2022 / Notices controlled by the Denied Person if such service involves the use of any item subject to the Regulations that has been or will be exported from the United States. For purposes of this paragraph, servicing means installation, maintenance, repair, modification or testing. Third, pursuant to section 1760(e) of ECRA and sections 766.23 and 766.25 of the Regulations, any other person, firm, corporation, or business organization related to Martinez 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 order to prevent evasion of this Order. Fourth, in accordance with part 756 of the Regulations, Martinez may file an appeal of this Order with the Under Secretary of Commerce for Industry and Security. The appeal must be filed within 45 days from the date of this Order and must comply with the provisions of Part 756 of the Regulations. Fifth, a copy of this Order shall be delivered to Martinez and shall be published in the Federal Register. Sixth, this Order is effective immediately and shall remain in effect until November 24, 2028. John Sonderman, Director, Office of Export Enforcement. [FR Doc. 2022–27944 Filed 12–22–22; 8:45 am] BILLING CODE 3510–DT–P DEPARTMENT OF COMMERCE Bureau of Industry and Security Order Renewing Temporary Denial of Export Privileges; Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya obl., g. Ob, prospekt Mozzherina, d. 10 ofis 201 TKELLEY on DSK125TN23PROD with NOTICE 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 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, VerDate Sep<11>2014 20:36 Dec 22, 2022 Jkt 259001 request of the Office of Export Enforcement (‘‘OEE’’) to renew the temporary denial order (‘‘TDO’’) issued in this matter on June 24, 2022. I find that renewal of this order is necessary in the public interest to prevent an imminent violation of the Regulations. I. Procedural History On June 24, 2022, I signed an order denying the export privileges of Siberian Airlines d/b/a S7 Airlines (‘‘Siberian’’) 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 On December 1, 2022, BIS, through OEE, submitted a written request for renewal of the TDO that issued on June 24, 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 Siberian 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 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). 2 The TDO was published in the Federal Register on June 29, 2022 (87 FR 38709). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 78921 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 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 June 24, 2022, was based on evidence that Siberian engaged in conduct prohibited by the 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). E:\FR\FM\23DEN1.SGM 23DEN1 78922 Federal Register / Vol. 87, No. 246 / Friday, December 23, 2022 / Notices 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, Atyrau, Kazakhstan, Bishkek, Kyrgyzstan, and Urgench, Uzbekistan, without the required BIS authorization.5 Tail No. RA–73667 RA–73667 RA–73667 RA–73667 RA–73667 RA–73667 RA–73668 RA–73668 RA–73668 RA–73668 RA–73668 RA–73670 RA–73670 RA–73670 RA–73670 RA–73670 RA–73670 Serial No. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. 41707 41707 41707 41707 41707 41707 41709 41709 41709 41709 41709 41710 41710 41710 41710 41710 41710 Aircraft type 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP 737–8LP (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) (B738) issuance of the TDO, Siberian continued to fly aircraft into Russia in violation of the EAR, including flights from Bangkok, Thailand, Antalya, Turkey, Istanbul, Turkey, Fergana, Uzbekistan, and Tashkent, Uzbekistan. Information about those flights includes, but is not limited to, the following: Departure/arrival cities Dates Antalya, TR/Novosibirisk, RU ................................. Tashkent, UZ/Novosibirisk, RU .............................. Antalya, TR/Novosibirisk, RU ................................. Antalya, TR/Moscow, RU ....................................... Urgench, UZ/Moscow, RU ..................................... Istanbul, TR/Moscow, RU ...................................... Bangkok, TH/Irkutsk, RU ....................................... Fergana, UZ/Novosibirisk, RU ............................... Istanbul, TR/Novosibirisk, RU ................................ Bangkok, TH/Irkutsk, RU ....................................... Bangkok, TH/Irkutsk, RU ....................................... Tashkent, UZ/Novosibirisk, RU .............................. Istanbul, TR/Novosibirisk, RU ................................ Fergana, UZ/Novosibirisk, RU ............................... Bangkok, TH/Irkutsk, RU ....................................... Bangkok, TH/Irkutsk, RU ....................................... Bangkok, TH/Irkutsk, RU ....................................... November November November December December December November December December December December November November November December December December 19, 2022. 27, 2022. 30, 2022. 4, 2022. 10, 2022. 12, 2022. 30, 2022. 3, 2022. 9, 2022. 11, 2022. 12, 2022. 24, 2022. 29, 2022. 29, 2022. 8, 2022. 9, 2022. 10, 2022. It is therefore ordered: First, Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya obl., g. Ob, prospekt Mozzherina, d. 10 ofis 201, 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 (incountry) to or on behalf of Siberian 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 Siberian 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 Siberian 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 Siberian 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; D. Obtain from Siberian 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 5 Publicly available flight tracking information shows, for example, that on March 10, 2022, serial number (‘‘SN’’) 41400 flew from Atyrau, Kazakhstan to Moscow, Russia. On May 1, 2022, SN 41707 flew from Bishkek, Kyrgyzstan to Novosibirisk, Russia and, on March 4, 2022, SN 41841 flew from Urgench, Uzbekistan to Moscow, Russia. 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 Siberian 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 Siberian, 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 TKELLEY on DSK125TN23PROD with NOTICE In its December 1, 2022, request for renewal of the TDO, BIS has submitted evidence that Siberian continues to operate in violation of the June 24, 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 indicates that after the VerDate Sep<11>2014 20:36 Dec 22, 2022 Jkt 259001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\23DEN1.SGM 23DEN1 Federal Register / Vol. 87, No. 246 / Friday, December 23, 2022 / Notices TKELLEY on DSK125TN23PROD with NOTICE 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 Siberian, or service any item, of whatever origin, that is owned, possessed or controlled by Siberian 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 Siberian 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, Siberian 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 Siberian 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 Siberian 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. 2022–27985 Filed 12–22–22; 8:45 am] BILLING CODE 3510–DT–P VerDate Sep<11>2014 20:36 Dec 22, 2022 Jkt 259001 DEPARTMENT OF COMMERCE Bureau Of Industry And Security Order Denying Export Privileges; In the Matter of: Jesse Cortez-Arguelles, 150 W. Lincoln Street, Apt. A, Tucson, AZ 85714 On November 5, 2020, in the U.S. District Court for the District of Arizona, Jesse Cortez-Arguelles (‘‘CortezArguelles’’) was convicted of violating 18 U.S.C. 554(a). Specifically, CortezArguelles was convicted of attempting to smuggle one 9 mm pistol, two 5.56 caliber rifles, two 9 mm firearm magazines, two 30-round 5.56 caliber firearm magazines, 1,030 rounds of 9 mm ammunition, and 1,000 rounds of 10 mm ammunition, in violation of 18 U.S.C. 554. As a result of his conviction, the Court sentenced Cortez-Arguelles to 36 months of confinement, with credit for time served, three years of supervised release and a $100 special assessment. Pursuant to Section 1760(e) of the Export Control Reform Act (‘‘ECRA’’),1 the export privileges of any person who has been convicted of certain offenses, including, but not limited to, 18 U.S.C. 554, may be denied for a period of up to ten (10) years from the date of his/her conviction. 50 U.S.C. 4819(e). In addition, any Bureau of Industry and Security (‘‘BIS’’) licenses or other authorizations issued under ECRA, in which the person had an interest at the time of the conviction, may be revoked. Id. BIS received notice of CortezArguelles’s conviction for violating 18 U.S.C. 554. As provided in section 766.25 of the Export Administration Regulations (‘‘EAR’’ or the ‘‘Regulations’’), BIS provided notice and opportunity for Cortez-Arguelles to make a written submission to BIS. 15 CFR 766.25.2 BIS has not received a written submission from CortezArguelles. Based upon my review of the record and consultations with BIS’s Office of Exporter Services, including its Director, and the facts available to BIS, I have decided to deny CortezArguelles’s export privileges under the Regulations for a period of 10 years from the date of Cortez-Arguelles’s conviction. The Office of Exporter Services has also decided to revoke any BIS-issued licenses in which Cortez1 ECRA was enacted on August 13, 2018, as part of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, and as amended is codified at 50 U.S.C. 4801–4852. 2 The Regulations are currently codified in the Code of Federal Regulations at 15 CFR parts 730– 774 (2022). PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 78923 Arguelles had an interest at the time of his conviction.3 Accordingly, it is hereby ordered: First, from the date of this Order until November 5, 2030, Jesse CortezArguelles, with a last known address of 150 W. Lincoln Street, Apt. A, Tucson, AZ 85714, and when acting for or on his behalf, his successors, assigns, employees, agents or representatives (‘‘the Denied Person’’), 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 Regulations, including, but not limited to: A. Applying for, obtaining, or using any license, 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 Regulations, or engaging in any other activity subject to 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 Regulations, or from any other activity subject to the Regulations. Second, no person may, directly or indirectly, do any of the following: A. Export, reexport, or transfer (incountry) to or on behalf of the Denied Person any item subject to the Regulations; B. Take any action that facilitates the acquisition or attempted acquisition by the Denied Person of the ownership, possession, or control of any item subject to the Regulations that has been or will be exported from the United States, including financing or other support activities related to a transaction whereby the Denied Person acquires or attempts to acquire such ownership, possession or control; C. Take any action to acquire from or to facilitate the acquisition or attempted acquisition from the Denied Person of any item subject to the Regulations that has been exported from the United States; D. Obtain from the Denied Person in the United States any item subject to the 3 The Director, Office of Export Enforcement, is the authorizing official for issuance of denial orders pursuant to amendments to the Regulations (85 FR 73411, November 18, 2020). E:\FR\FM\23DEN1.SGM 23DEN1

Agencies

[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Notices]
[Pages 78921-78923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27985]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

Order Renewing Temporary Denial of Export Privileges; Siberian
Airlines d/b/a S7 Airlines, 633104, Novosibirskaya obl., g. Ob,
prospekt Mozzherina, d. 10 ofis 201

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 June 24, 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. 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 June 24, 2022, I signed an order denying the export privileges
of Siberian Airlines d/b/a S7 Airlines (``Siberian'') 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 June 29,
2022 (87 FR 38709).
---------------------------------------------------------------------------

On December 1, 2022, BIS, through OEE, submitted a written request
for renewal of the TDO that issued on June 24, 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 Siberian 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.
---------------------------------------------------------------------------

\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).
---------------------------------------------------------------------------

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 June 24, 2022, was based on evidence that Siberian engaged in
conduct prohibited by the

[[Page 78922]]

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, Atyrau,
Kazakhstan, Bishkek, Kyrgyzstan, and Urgench, Uzbekistan, without the
required BIS authorization.\5\
---------------------------------------------------------------------------

\5\ Publicly available flight tracking information shows, for
example, that on March 10, 2022, serial number (``SN'') 41400 flew
from Atyrau, Kazakhstan to Moscow, Russia. On May 1, 2022, SN 41707
flew from Bishkek, Kyrgyzstan to Novosibirisk, Russia and, on March
4, 2022, SN 41841 flew from Urgench, Uzbekistan to Moscow, Russia.
---------------------------------------------------------------------------

In its December 1, 2022, request for renewal of the TDO, BIS has
submitted evidence that Siberian continues to operate in violation of
the June 24, 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 indicates that after the
issuance of the TDO, Siberian continued to fly aircraft into Russia in
violation of the EAR, including flights from Bangkok, Thailand,
Antalya, Turkey, Istanbul, Turkey, Fergana, Uzbekistan, and Tashkent,
Uzbekistan. Information about those flights includes, but is not
limited to, the following:

----------------------------------------------------------------------------------------------------------------
Departure/arrival
Tail No. Serial No. Aircraft type cities Dates
----------------------------------------------------------------------------------------------------------------
RA-73667...................... 41707 737-8LP (B738)...... Antalya, TR/ November 19, 2022.
Novosibirisk, RU.
RA-73667...................... 41707 737-8LP (B738)...... Tashkent, UZ/ November 27, 2022.
Novosibirisk, RU.
RA-73667...................... 41707 737-8LP (B738)...... Antalya, TR/ November 30, 2022.
Novosibirisk, RU.
RA-73667...................... 41707 737-8LP (B738)...... Antalya, TR/Moscow, December 4, 2022.
RU.
RA-73667...................... 41707 737-8LP (B738)...... Urgench, UZ/Moscow, December 10, 2022.
RU.
RA-73667...................... 41707 737-8LP (B738)...... Istanbul, TR/Moscow, December 12, 2022.
RU.
RA-73668...................... 41709 737-8LP (B738)...... Bangkok, TH/Irkutsk, November 30, 2022.
RU.
RA-73668...................... 41709 737-8LP (B738)...... Fergana, UZ/ December 3, 2022.
Novosibirisk, RU.
RA-73668...................... 41709 737-8LP (B738)...... Istanbul, TR/ December 9, 2022.
Novosibirisk, RU.
RA-73668...................... 41709 737-8LP (B738)...... Bangkok, TH/Irkutsk, December 11, 2022.
RU.
RA-73668...................... 41709 737-8LP (B738)...... Bangkok, TH/Irkutsk, December 12, 2022.
RU.
RA-73670...................... 41710 737-8LP (B738)...... Tashkent, UZ/ November 24, 2022.
Novosibirisk, RU.
RA-73670...................... 41710 737-8LP (B738)...... Istanbul, TR/ November 29, 2022.
Novosibirisk, RU.
RA-73670...................... 41710 737-8LP (B738)...... Fergana, UZ/ November 29, 2022.
Novosibirisk, RU.
RA-73670...................... 41710 737-8LP (B738)...... Bangkok, TH/Irkutsk, December 8, 2022.
RU.
RA-73670...................... 41710 737-8LP (B738)...... Bangkok, TH/Irkutsk, December 9, 2022.
RU.
RA-73670...................... 41710 737-8LP (B738)...... Bangkok, TH/Irkutsk, December 10, 2022.
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 Siberian 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 Siberian,
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, Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya
obl., g. Ob, prospekt Mozzherina, d. 10 ofis 201, 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
Siberian 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 Siberian 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 Siberian 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 Siberian 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;
D. Obtain from Siberian 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

[[Page 78923]]

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 Siberian, or service any item, of
whatever origin, that is owned, possessed or controlled by Siberian 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 Siberian 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,
Siberian 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 Siberian 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 Siberian 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. 2022-27985 Filed 12-22-22; 8:45 am]
BILLING CODE 3510-DT-P

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