Order Renewing Temporary Denial of Export Privileges; UTair Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region, Russia 628012, 19911-19913 [2023-06883]

Download as PDF Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices 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 Azur 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 Azur, 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. 2023–06907 Filed 4–3–23; 8:45 am] BILLING CODE 3510–DT–P II. Renewal of the TDO DEPARTMENT OF COMMERCE A. Legal Standard Bureau of Industry and Security Order Renewing Temporary Denial of Export Privileges; UTair Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region, Russia 628012 Pursuant to section 766.24 of the Export Administration Regulations, 15 CFR parts 730–774 (‘‘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 October 3, 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 ddrumheller on DSK120RN23PROD with NOTICES1 On April 7, 2022, I signed an order denying UTair Aviation JCS’s (‘‘UTair’’) export privileges for a period of 180 days on the ground that issuance of 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 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 19:41 Apr 03, 2023 Jkt 259001 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 This temporary denial order was subsequently renewed in accordance with section 766.24(d) of the Regulations.3 The renewal order issued on October 3, 2022 and was effective upon issuance.4 On March 7, 2023, BIS, through OEE, submitted a written request for renewal of the TDO that issued on October 3, 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 UTair in accordance with sections 766.5 and 766.24(d) of the Regulations. No opposition to the renewal of the TDO has been received. 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. 2 The TDO was published in the Federal Register on April 12, 2022 (87 FR 21616). 3 Section 766.24(d) provides that BIS may seek renewal of a temporary denial order for additional 180-day renewal periods, if it believes that renewal is necessary in the public interest to prevent an imminent violation. Renewal requests are to be made in writing no later than 20 days before the scheduled expiration date of a temporary denial order. 4 The October 3, 2022 renewal order was published in the Federal Register on October 7, 2022 (87 FR 60987). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 19911 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).5 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).6 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. This OEE request for renewal is based upon the facts underlying the issuance of the initial TDO and the renewal order subsequently issued in this matter on October 3, 2022, as well as other evidence developed during this investigation. These facts and evidence demonstrate that UTair continues to act in blatant disregard for U.S. export controls and the applicable TDO. Specifically, the initial TDO, issued on April 7, 2022, was based on evidence 5 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). 6 87 FR 13048 (Mar. 8, 2022). E:\FR\FM\04APN1.SGM 04APN1 19912 Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices that UTair 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, Jeddah, Saudi Arabia, Yerevan, Armenia, and Tashkent, Uzbekistan, without the required BIS authorization.7 Further evidence submitted by BIS indicated that UTair was continuing to operate aircraft subject to the EAR domestically on flights within Russia, potentially in violation of section 736.2(b)(10) of the Regulations. As discussed in the October 3, 2022 renewal order, evidence presented by Tail No. RA–73089 RA–73089 RA–73089 RA–73082 RA–73086 RA–73086 RA–73086 RA–73047 RA–73047 Serial No. 37552 37552 37552 30437 32780 32780 32780 28912 28912 Departure/arrival cities 737–8GU (B738) ................ 737–8GU (B738) ................ 737–8GU (B738) ................ 767–224 (ER) (B762) ......... 737–8AS (B738) ................. 737–8AS (B738) ................. 737–8AS (B738) ................. 737–524 (B735) ................. 737–524 (B735) ................. Fergana, UZ/Surgut, RU ............................................. Yerevan, AM/Moscow, RU .......................................... Dubai, AE/Grozny, RU ................................................ Dushanbe, TJ/Moscow, RU ......................................... Dubai, AE/Grozny, RU ................................................ Yerevan, AM/Tyumen, RU .......................................... Baku, AZ/Moscow, RU ................................................ Baku, AZ/Ufa, RU ........................................................ Baku, AZ/Ufa, RU ........................................................ 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 UTair has acted in violation of the Regulations and the TDO; that such violations have been significant and deliberate; 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 UTair, in connection with export and reexport transactions involving items subject to the Regulations and in connection with any other activity subject to the Regulations. ddrumheller on DSK120RN23PROD with NOTICES1 IV. Order It is therefore ordered: First, UTair Aviation JSC, KhantyMansiysk Airport, Tyumen Region, 7 Publicly available flight tracking information shows that on March 5, 2022, serial number (SN) 36387 flew from Jeddah, Saudi Arabia to Grozny, Russia, and on March 30, 2022, SN 28907 flew from Yerevan, Armenia to Tyumen, Russia. In addition, on March 31, 2022, SN 30437 flew from Tashkent, Uzbekistan to Moscow, Russia. 20:57 Apr 03, 2023 is operating aircraft subject to the EAR and classified under ECCN 9A991.b, both on flights into and within Russia, in violation of the October 3, 2022 TDO and/or the Regulations. Specifically, BIS’s evidence and related investigation demonstrates that UTair has continued to operate aircraft subject to the EAR, including, but not limited to, on flights into and out of Russia from/to Fergana, Uzbekistan, Dushanbe, Tajikistan, Dubai, United Arab Emirates, and Baku, Azerbaijan. Information about those flights includes, but is not limited to, the following: Aircraft type III. Findings VerDate Sep<11>2014 BIS indicated that, after the initial order issued, UTair continued to operate aircraft subject to the EAR and classified under ECCN 9A991.b on flights both into and out of Russia, in violation of the Regulations and the TDO itself.8 Specifically, the October 3, 2022 renewal order detailed UTair’s continued operation of aircraft subject to the EAR, including, but not limited to, on flights into and out of Russia from/to Yerevan, Armenia, Baku, Azerbaijan, and Tashkent, Uzbekistan.9 Since that time, UTair has continued to engage in conduct prohibited by the applicable TDO and Regulations. In its March 7, 2023 request for renewal of the TDO, BIS submitted evidence that UTair Jkt 259001 Dates March 13, 2023. March 23, 2023. March 28, 2023. March 29, 2023. March 19, 2023. March 26, 2023. March 28, 2023. February 28, 2023. March 7, 2023. Russia 628012, 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 UTair 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 UTair 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 UTair 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 8 Engaging in conduct prohibited by a denial order violates the Regulations. 15 CFR 764.2(a) and (k). 9 Publicly available flight tracking information shows that on September 19, 2022, SN 30437 flew from Tashkent, Uzbekistan to Moscow, Russia, and SN 30435 flew from Yerevan, Armenia to Moscow, Russia. In addition, on September 21, 2022, SN 28912 flew from Baku, Azerbaijan to Moscow, Russia. PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\04APN1.SGM 04APN1 ddrumheller on DSK120RN23PROD with NOTICES1 Federal Register / Vol. 88, No. 64 / Tuesday, April 4, 2023 / Notices acquisition from UTair 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 UTair 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 UTair, or service any item, of whatever origin, that is owned, possessed or controlled by UTair 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 UTair 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, UTair 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 UTair 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 UTair, and shall be published in the Federal Register. VerDate Sep<11>2014 19:41 Apr 03, 2023 Jkt 259001 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. 2023–06883 Filed 4–3–23; 8:45 am] BILLING CODE 3510–DT–P DEPARTMENT OF COMMERCE Bureau of Industry and Security [Case No. 22–BIS–0007] Order Relating to Kenneth Scott, Scott Communications, Inc., and Mission Communications, LLC; In the Matter of: Scott Communications, Inc., 61574 Hillside Road, St. Ignatius, MT 59865; Mission Communications, LLC, 61574 Hillside Road, St. Ignatius, MT 59865; Kenneth Peter Scott, 61574 Hillside Road, St. Ignatius, MT 59865; Respondents The Bureau of Industry and Security, U.S. Department of Commerce (‘‘BIS’’), has notified Scott Communications, Inc. and Kenneth Scott (collectively ‘‘Scott’’), as well as Mission Communications, LLC (‘‘Mission’’) of St. Ignatius, Montana (‘‘Respondents’’), that it has initiated an administrative proceeding against them pursuant to section 766.3 of the Export Administration Regulations (the ‘‘Regulations’’),1 through the issuance of a Charging Letter alleging that Respondents committed five violations of the Regulations. Specifically: General Allegations 1. In or about March 2017, a Federal Bureau of Investigations (‘‘FBI’’) Special Agent working in an undercover capacity (the ‘‘UC’’) contacted Kenneth Scott via email. The UC used an email 1 The Regulations originally issued under the Export Administration Act of 1979, as amended, 50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), which lapsed on August 21, 2001. The President, through Executive Order 13,222 of August 17, 2001 (3 CFR, 2001 comp. 783 (2002)), which has been extended by successive Presidential Notices, continued the Regulations in full force and effect under the International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. (2012) (‘‘IEEPA’’). 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 EAA (except for three sections which are inapplicable here), section 1768 of ECRA provides, in pertinent part, that all rules and regulations that were made or issued under the EAA, including as continued in effect pursuant to IEEPA, and were in effect as of ECRA’s date of enactment (August 13, 2018), shall continue in effect until modified, superseded, set aside, or revoked through action undertaken pursuant to the authority provided under ECRA. PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 19913 address identified from a trade magazine advertisement in which Scott Communications advertised various communications equipment for sale. During the course of the sales negotiations with the UC, Scott was acting on behalf of Scott Communications, Inc. For example, the advertisement also included a telephone and fax number for ‘‘Ken Scott.’’ A 2017 Better Business Bureau business profile further identified Kenneth Scott as the president of Scott Communications, Inc. In addition, in his email communications with the UC, as well in his social media profiles, Kenneth Scott identified himself as the President of Scott Communications. 2. On or about March 16, 2017, the UC sent Scott an email titled ‘‘Motorola Radio Quote Request.’’ In the email, the UC requested a price quote for two Motorola XTS 2500, 800 or 900 Mhz radios. The UC also told Scott that, after the initial order of two radios, he intended to follow up with a larger order. The UC also asked Scott about shipping to Iran and later informed Scott that he intended to transship the radios from Jordan to Iran. Scott ultimately agreed to ship the radios to Jordan with knowledge that they would then be transshipped to Iran. 3. Specifically, on or about March 21, 2017, the UC emailed Scott asking him to: Please provide me with your competitive shipping price to Jordan. My customer will test the units there. For the second order, it would be very valuable to me if you can ship directly to my customer in Iran. I want to continue business with you and this would be very helpful because as you know my customer cannot purchase directly from the United States. If you are able to get the units to Iran we will negotiate your fees in addition to the price for radios and your shipping rates. If you can only get the radios close, we can determine an appropriate fee. 4. In response, Scott stated: I have never shipped to IRAN, and the way the politics here are concerned, I would guess not. Where else could we ship them to, [p]rior to them going to IRAN. Do you have a broker here in the US?’’ 5. The following day, the UC responded with: Unfortunately, I do not have a US based broker. I understand that due to the sanctions the US has against Iran one cannot ship goods from the US directly to that country. If you can ship the radios to Jordan I can transship them to my customer in Iran. Please provide me with a quote for shipping the two radios to Jordan. 6. The UC also discussed possible shipments to Singapore. Scott ultimately advised that shipping via E:\FR\FM\04APN1.SGM 04APN1

Agencies

[Federal Register Volume 88, Number 64 (Tuesday, April 4, 2023)]
[Notices]
[Pages 19911-19913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06883]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

Order Renewing Temporary Denial of Export Privileges; UTair
Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region, Russia 628012

Pursuant to section 766.24 of the Export Administration
Regulations, 15 CFR parts 730-774 (``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 October 3, 2022. I find that renewal of this order is
necessary in the public interest to prevent an imminent violation of
the Regulations.
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\1\ On August 13, 2018, the President signed into law the John
S. McCain National Defense Authorization Act for Fiscal Year 2019,
which includes the Export Control Reform Act of 2018, 50 U.S.C.
4801-4852 (``ECRA''). While section 1766 of ECRA repeals the
provisions of the Export Administration Act, 50 U.S.C. App. 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 the International Emergency Economic Powers Act,
50 U.S.C. 1701 et seq. (``IEEPA''), and were in effect as of ECRA's
date of enactment (August 13, 2018), shall continue in effect
according to their terms until modified, superseded, set aside, or
revoked through action undertaken pursuant to the authority provided
under ECRA. Moreover, section 1761(a)(5) of ECRA authorizes the
issuance of temporary denial orders. 50 U.S.C. 4820(a)(5).
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I. Procedural History

On April 7, 2022, I signed an order denying UTair Aviation JCS's
(``UTair'') export privileges 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\ This temporary denial order was
subsequently renewed in accordance with section 766.24(d) of the
Regulations.\3\ The renewal order issued on October 3, 2022 and was
effective upon issuance.\4\
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\2\ The TDO was published in the Federal Register on April 12,
2022 (87 FR 21616).
\3\ Section 766.24(d) provides that BIS may seek renewal of a
temporary denial order for additional 180-day renewal periods, if it
believes that renewal is necessary in the public interest to prevent
an imminent violation. Renewal requests are to be made in writing no
later than 20 days before the scheduled expiration date of a
temporary denial order.
\4\ The October 3, 2022 renewal order was published in the
Federal Register on October 7, 2022 (87 FR 60987).
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On March 7, 2023, BIS, through OEE, submitted a written request for
renewal of the TDO that issued on October 3, 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 UTair 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).\5\ 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).\6\ 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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\5\ 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).
\6\ 87 FR 13048 (Mar. 8, 2022).
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This OEE request for renewal is based upon the facts underlying the
issuance of the initial TDO and the renewal order subsequently issued
in this matter on October 3, 2022, as well as other evidence developed
during this investigation. These facts and evidence demonstrate that
UTair continues to act in blatant disregard for U.S. export controls
and the applicable TDO. Specifically, the initial TDO, issued on April
7, 2022, was based on evidence

[[Page 19912]]

that UTair 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, Jeddah, Saudi Arabia,
Yerevan, Armenia, and Tashkent, Uzbekistan, without the required BIS
authorization.\7\ Further evidence submitted by BIS indicated that
UTair was continuing to operate aircraft subject to the EAR
domestically on flights within Russia, potentially in violation of
section 736.2(b)(10) of the Regulations.
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\7\ Publicly available flight tracking information shows that on
March 5, 2022, serial number (SN) 36387 flew from Jeddah, Saudi
Arabia to Grozny, Russia, and on March 30, 2022, SN 28907 flew from
Yerevan, Armenia to Tyumen, Russia. In addition, on March 31, 2022,
SN 30437 flew from Tashkent, Uzbekistan to Moscow, Russia.
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As discussed in the October 3, 2022 renewal order, evidence
presented by BIS indicated that, after the initial order issued, UTair
continued to operate aircraft subject to the EAR and classified under
ECCN 9A991.b on flights both into and out of Russia, in violation of
the Regulations and the TDO itself.\8\ Specifically, the October 3,
2022 renewal order detailed UTair's continued operation of aircraft
subject to the EAR, including, but not limited to, on flights into and
out of Russia from/to Yerevan, Armenia, Baku, Azerbaijan, and Tashkent,
Uzbekistan.\9\
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\8\ Engaging in conduct prohibited by a denial order violates
the Regulations. 15 CFR 764.2(a) and (k).
\9\ Publicly available flight tracking information shows that on
September 19, 2022, SN 30437 flew from Tashkent, Uzbekistan to
Moscow, Russia, and SN 30435 flew from Yerevan, Armenia to Moscow,
Russia. In addition, on September 21, 2022, SN 28912 flew from Baku,
Azerbaijan to Moscow, Russia.
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Since that time, UTair has continued to engage in conduct
prohibited by the applicable TDO and Regulations. In its March 7, 2023
request for renewal of the TDO, BIS submitted evidence that UTair is
operating aircraft subject to the EAR and classified under ECCN
9A991.b, both on flights into and within Russia, in violation of the
October 3, 2022 TDO and/or the Regulations. Specifically, BIS's
evidence and related investigation demonstrates that UTair has
continued to operate aircraft subject to the EAR, including, but not
limited to, on flights into and out of Russia from/to Fergana,
Uzbekistan, Dushanbe, Tajikistan, Dubai, United Arab Emirates, and
Baku, Azerbaijan. Information about those flights includes, but is not
limited to, the following:

--------------------------------------------------------------------------------------------------------------------------------------------------------
Tail No. Serial No. Aircraft type Departure/arrival cities Dates
--------------------------------------------------------------------------------------------------------------------------------------------------------
RA-73089.............. 37552 737-8GU (B738)............................ Fergana, UZ/Surgut, RU.. March 13, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Yerevan, AM/Moscow, RU.. March 23, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Dubai, AE/Grozny, RU.... March 28, 2023.
RA-73082.............. 30437 767-224 (ER) (B762)....................... Dushanbe, TJ/Moscow, RU. March 29, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Dubai, AE/Grozny, RU.... March 19, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Yerevan, AM/Tyumen, RU.. March 26, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... March 28, 2023.
RA-73047.............. 28912 737-524 (B735)............................ Baku, AZ/Ufa, RU........ February 28, 2023.
RA-73047.............. 28912 737-524 (B735)............................ Baku, AZ/Ufa, RU........ March 7, 2023.
--------------------------------------------------------------------------------------------------------------------------------------------------------

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 UTair has
acted in violation of the Regulations and the TDO; that such violations
have been significant and deliberate; 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 UTair, 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, UTair Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region,
Russia 628012, 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
UTair 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 UTair 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 UTair 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

[[Page 19913]]

acquisition from UTair 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 UTair 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 UTair, or service any item, of
whatever origin, that is owned, possessed or controlled by UTair 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 UTair 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,
UTair 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 UTair 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 UTair, 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. 2023-06883 Filed 4-3-23; 8:45 am]
BILLING CODE 3510-DT-P

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