Oleg Sergeyevich Patsulya, 15811 Collins Ave., Unit 4102, Sunny Isles Beach, Florida 33160; Vasilii Sergeyevich Besedin, 2960 NE 207th St., Unit 502, Aventura, Florida 33160; MIC P&I, LLC, 15811 Collins Ave., Unit 4102, Sunny Isles Beach, FL 33160 and 2046 McKinley St., Ste. 4, Hollywood, FL 33020; Intermodal Maldives, 1st Floor-H. Maaram, Ameeru Ahmed Magu, Male, Republic of Maldives; JSC Smartavia Airlines, ”Arkhangelsk” Airport, 4/1, Arkhangelsk Russia, 163053; Order Temporarily Denying Export Privileges, 32181-32184 [2023-10750]
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Federal Register / Vol. 88, No. 97 / Friday, May 19, 2023 / Notices
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Agenda
I. Welcome & Roll Call
II. Discussion: Draft Report on Indigent
Legal Services
III. Public Comment
IV. Next Steps
V. Adjournment
Dated: May 15, 2023.
David Mussatt,
Supervisory Chief, Regional Programs Unit.
[FR Doc. 2023–10679 Filed 5–18–23; 8:45 am]
BILLING CODE P
DEPARTMENT OF COMMERCE
ddrumheller on DSK120RN23PROD with NOTICES1
Foreign-Trade Zones Board
[B–6–2023]
Foreign-Trade Zone (FTZ) 30;
Authorization of Limited Production
Activity; Albion Laboratories, Inc.;
(Mineral Amino Acid Chelates); Ogden,
Utah
On January 13, 2023, Albion
Laboratories, Inc. submitted a
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18:30 May 18, 2023
Jkt 259001
notification of proposed production
activity to the FTZ Board for its
facilities within Subzone 30E, in Ogden,
Utah.
The notification was processed in
accordance with the regulations of the
FTZ Board (15 CFR part 400), including
notice in the Federal Register inviting
public comment (88 FR 4152, January
24, 2023). On May 15, 2023, the
applicant was notified of the FTZ
Board’s decision that further review of
part of the proposed activity is
warranted. The FTZ Board authorized
the production activity described in the
notification on a limited basis, subject to
the FTZ Act and the Board’s regulations,
including section 400.14, with further
review warranted prior to the potential
use of glycine as a foreign status
component.
Dated: May 15, 2023.
Elizabeth Whiteman,
Executive Secretary.
[FR Doc. 2023–10708 Filed 5–18–23; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Oleg Sergeyevich Patsulya, 15811
Collins Ave., Unit 4102, Sunny Isles
Beach, Florida 33160; Vasilii
Sergeyevich Besedin, 2960 NE 207th
St., Unit 502, Aventura, Florida 33160;
MIC P&I, LLC, 15811 Collins Ave., Unit
4102, Sunny Isles Beach, FL 33160 and
2046 McKinley St., Ste. 4, Hollywood,
FL 33020; Intermodal Maldives, 1st
Floor—H. Maaram, Ameeru Ahmed
Magu, Male, Republic of Maldives; JSC
Smartavia Airlines, ’’Arkhangelsk’’
Airport, 4/1, Arkhangelsk Russia,
163053; Order Temporarily Denying
Export Privileges
Pursuant to section 766.24 of the
Export Administration Regulations (the
‘‘Regulations’’ or ‘‘EAR’’),1 the Bureau of
1 The Regulations, currently codified at 15 CFR
parts 730–774 (2020), originally issued pursuant to
the Export Administration Act (50 U.S.C. 4601–
4623 (Supp. III 2015) (‘‘EAA’’), which lapsed on
August 21, 2001. The President, through Executive
Order 13222 of August 17, 2001 (3 CFR 2001 Comp.
783 (2002)), as extended by successive Presidential
Notices, continued the Regulations in 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 orders, rules,
regulations, and other forms of administrative
action that were made or issued under the EAA,
including as continued in effect pursuant to IEEPA,
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32181
Industry and Security (‘‘BIS’’), U.S.
Department of Commerce, through its
Office of Export Enforcement (‘‘OEE’’),
has requested the issuance of an Order
temporarily denying, for a period of 180
days, the export privileges under the
Regulations of: Oleg Sergeyevich
Patsulya, Vasilii Sergeyevich Besedin,
MIC P&I, LLC, Intermodal Maldives, and
JSC Smartavia Airlines. OEE’s request
and related information indicates that
these parties are located in the United
States, the Republic of Maldives, and/or
the Russian Federation, at the respective
addresses listed on the caption page of
this order and on pages 9–11, infra, and
that Patsulya and Besedin are Russian
nationals who own, control and/or are
affiliated with MIC P&I, LLC.
I. 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. 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 ‘‘[l]ack 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.
II. OEE’S Request for a Temporary
Denial Order
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
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.
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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.
As of February 24, 2022, any item
classified under any Export
Classification Control Number
(‘‘ECCN’’) in Categories 3 through 9 of
the Commerce Control List (‘‘CCL’’)
requires a license to be exported or
reexported to Russia. See 87 FR 12226
(Mar. 3, 2022). As of April 8, 2022, the
license requirements for Russia were
expanded to cover all items on the CCL.
See 87 FR 22130 (Apr. 14, 2022). These
rules were codified in title 15 CFR
746.8, which state, ‘‘a license is
required, excluding deemed exports and
deemed reexports, to export, reexport,
or transfer (in-country) to or within
Russia or Belarus any item subject to the
EAR and specified in any Export
Control Classification Number (ECCN)
on the CCL.’’
In its request, OEE has presented
evidence that Oleg Sergeyevich Patsulya
and Vasilii Sergeyevich Besedin,
operating in the United States and
working together on behalf of MIC P&I,
LLC (‘‘MIC’’), have engaged in the
attempted procurement, export, and
diversion of U.S.-origin commodities,
including through Intermodal Maldives
(‘‘Intermodal’’), for ultimate end use in
Russia without the proper BIS export
licenses. These items include civil
aviation parts and components. OEE has
also presented evidence indicating that
Patsulya and Besedin have undertaken
procurement efforts, in part, on behalf of
Russian airline JSC Smartavia Airlines
(‘‘Smartavia’’), as well as Rossiya
Airlines 2 and Pobeda Airlines,3 both
Russian airlines on the BIS Denied
Persons List (‘‘DPL’’).
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A. Procurement Efforts for Russian
Airlines
OEE’s ongoing investigation has
revealed that, between in or around
September and October 2022, Patsulya
and Besedin, who live in the United
States, attempted to procure more than
two million dollars of U.S. origin
civilian aircraft parts from one U.S.
supplier, including large quantities of
2 A TDO was first issued against Rossiya Airlines
on May 20, 2022 and published in the Federal
Register on May 25, 2022. See 87 FR 31856. The
TDO was renewed on November 15, 2022 and
published in the Federal Register on November 21,
2022. See 87 FR 70780. The TDO was renewed
again on May 12, 2023.
3 A TDO was first issued against Pobeda Airlines
on June 24, 2022 and published in the Federal
Register on June 29, 2022. See 87 FR 38707. The
TDO was renewed on December 20, 2022 and
published in the Federal Register on December 23,
2022. See 87 FR 78925.
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18:30 May 18, 2023
Jkt 259001
wheels, tires, and brakes. In particular,
OEE has presented evidence that
Patsulya and Besedin, acting as
representatives of MIC, attempted to
procure multiple quantities of an
aircraft brake assembly, identified as
Goodrich Part number 2–1740–1 (the
‘‘Goodrich brake assembly’’), which is
classified as ECCN 9A991.d, controlled
for Anti-terrorism reasons, and would
require a license for export to Russia.
After Patsulya, Besedin, and MIC failed
in their attempts to purchase the
Goodrich brake assembly from this
supplier, they subsequently purchased
the brake assembly from another U.S.
supplier.
OEE’s investigation has also
determined that, beginning in and
around May 2022, shortly prior to these
procurement efforts, Patsulya began
communicating with various Russian
entities, including parties on the DPL,
about supplying them with various
aircraft parts and components. For
example, OEE has presented evidence
that, in June 2022, Smartavia provided
Patsulya with a list of aircraft parts it
sought to obtain, including the Goodrich
brake assembly. On July 14, 2022,
Patsulya emailed Smartavia with a
quotation for delivery of various aircraft
parts and components to Smartavia in
Moscow, including two units of the
Goodrich brake assembly. In August
2022, immediately after receiving a
quotation for the Goodrich brake
assemblies from a U.S. company,
Patsulya emailed Smartavia again to
offer two units for $105,000 per unit. On
August 16, 2022, Smartavia provided
Patsulya with a purchase order for the
two units. Patsulya responded with an
invoice, identified as PI–0017–022,
reflecting a unit price of $105,000 and
then subsequently sent himself an
invoice, also identified as PI–0017–022,
purportedly from an intermediary
company to MIC.
On August 22, 2022, Besedin received
an email from a U.S. parts supplier with
information about five units of the
Goodrich brake available for purchase.
Besedin provided the information to
Patsulya, who in turn sent Smartavia an
invoice for five units of the Goodrich
brake assembly, reflecting a total cost of
$515,000. On August 30, 2022,
Smartavia provided Patsulya with proof
of a wire transfer reflecting a payment
of $515,000.
OEE’s request is also based on facts
demonstrating that Patsulya began
communicating with representatives of
Rossiya Airlines and Pobeda Airlines
about procurement of U.S. origin aircraft
parts and components while both
airlines were on the DPL. Specifically,
on August 31, 2022, while Rossiya
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Frm 00007
Fmt 4703
Sfmt 4703
Airlines was subject to a TDO, Patsulya
emailed a Rossiya Airlines
representative to offer procurement of
U.S. origin aircraft parts and supplies,
representing himself and MIC as a
supplier for Smartavia and Russian
Ministry of Defense affiliates.
Additionally, in October 2022, while
Pobeda Airlines was subject to a TDO,
Patsulya communicated with a Pobeda
Airlines representative about payment
options for the Goodrich brake assembly
and the TDO imposed against the
airline.
B. Intermodal Maldives
As stated in OEE’s request, OEE’s
investigation determined that shipments
to Russia were being routed through
Intermodal, a company in the Republic
of Maldives. Based on evidence
presented by OEE, Intermodal first
began receiving exports from the United
States in May of 2022 and, as of October
2022, had received approximately 212
shipments, the majority appearing to be
aircraft parts. For example, OEE’s
investigation identified the following
shipments to Russia between June and
October 2022: (1) a Russian freight
forwarder used Intermodal to receive a
shipment of U.S. origin civil aircraft
parts; (2) a Russian customer used
Intermodal to forward and route lab
equipment to Russia without the
knowledge of the U.S. exporter; and (3)
a shipment of directional drilling tools
was sent to Moscow, Russia, through
Intermodal. None of the export control
documents related to these three
shipments indicated that the items were
destined for export to Russia. OEE has
also presented evidence that another
shipment to Intermodal which was
destined for Russia contained a rotary
actuator, which was designated as
EAR99. Although some of the nonaircraft parts are designated as EAR99,
OEE has reason to believe that a license
would have been required pursuant to
section 746.5 of the EAR (Russian
industry sector sanctions) and that no
such license was obtained.
OEE’s request is also based on facts
revealed during an end-use check
conducted by BIS at Intermodal on
February 22, 2023. For example, the
end-use check determined that
Intermodal is a designated cargo sales
agent for PJSC Aeroflot,4 another
Russian airline that has been on the BIS
DPL since April 7, 2022. OEE also
presented evidence that four of the five
shipments specifically inquired about
4 A TDO was first issued against Aeroflot on April
7, 2022 and published in the Federal Register on
April 12, 2022. See 87 FR 21611. The TDO was
renewed on October 3, 2022 and again on March
29, 2023. See 88 FR 19609.
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went to Russia, including one destined
for Pobeda Airlines and another for
Russian airline UTair Aviation JSC
(‘‘UTair’’).5 The destination of the fifth
shipment could not be determined.
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C. MIC and Intermodal Detentions
OEE has also presented evidence
related to its November 29, 2022
detention of a shipment destined for
Intermodal. Specifically, the shipment
detained by OEE included two units of
the Goodrich brake assemblies,
classified as ECCN 9A991.d and
controlled for Anti-terrorism reasons.
OEE’s ongoing investigation revealed
that the brake assemblies were
purchased by MIC and that Besedin
personally traveled to a warehouse
location to inspect the brakes. Although
the brake assemblies would have
required a license for export to Russia,
no such license was obtained. On
January 3, 2023, OEE detained another
shipment of the Goodrich brake
assemblies purchased by Patsulya and
Besedin. Although Besedin initially told
the vendor that the brake assemblies
were destined for Intermodal, the
information was later changed to reflect
shipping to Turkey after Besedin was
alerted by a U.S. freight forwarder of
issues with shipping to Intermodal.
Moreover, OEE’s requests include facts
demonstrating that Patsulya and
Besedin gave various and conflicting
information about the ultimate
destination and end user of the
Goodrich brake assemblies.
D. Risk of Imminent Violation
As detailed in OEE’s request and
related information, since May 2022,
Patsulya and Besedin, through MIC,
have engaged in repeated attempts to
procure U.S. origin commodities for
Russian end users, including parties on
the DPL. These efforts have involved
multiple U.S. suppliers, indicating that
when one procurement attempt fails,
Patsulya and Besedin will simply
continue engaging other suppliers.
Moreover, OEE’s request demonstrates
that they have been actively promoting
themselves as able to supply aircraft
parts and components to Russian
airlines, including those on the DPL. As
detailed above, OEE’s request also
indicates that Smartavia has attempted
to obtain U.S. origin commodities,
including the Goodrich brake
assemblies, on multiple occasions, and
that Patsulya and Besedin self-identified
as Smartavia’s supplier.
5 A TDO was first issued against UTair on April
7, 2022, and published in the Federal Register on
April 12, 2022. See 87 FR 21616. The TDO was
renewed on October 3, 2022 and again on March
29, 2023. See 88 FR 19911.
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18:30 May 18, 2023
Jkt 259001
OEE’s request also reflects that
between May 18, 2022 and February 28,
2023, Intermodal was listed as the
ultimate or intermediate consignee on
248 exports valued at over $5.1 million
and that Patsulya and Besedin, through
MIC, have made six attempts to export
from the United States, including one to
Intermodal and a second initially
destined for Intermodal. Additionally,
OEE has presented evidence that, as
recently as April 20, 2023, Patsulya and
Besedin have been emailing OEE agents
in continued attempts to retrieve the
detained aircraft Goodrich brake
assemblies, maintaining that they were
intended for use in Turkey and
suggesting that their procurement efforts
remain ongoing.
III. Findings
As described above, I find that the
evidence presented by BIS demonstrates
that a violation of the Regulations by the
above-captioned parties is imminent in
both time and degree of likelihood. As
such, a TDO is needed to give notice to
persons and companies in the United
States and abroad that they should cease
dealing with Oleg Sergeyevich Patsulya,
Vasilii Sergeyevich Besedin, MIC P&I,
LLC, Intermodal Maldives, and
Smartavia Airlines in export or reexport
transactions involving items subject to
the EAR. Such a TDO is consistent with
the public interest to preclude future
violations of the Regulations given the
deliberate, covert, and determined
nature of the misconduct and clear
disregard for complying with U.S.
export control laws.
This Order is being issued on an ex
parte basis without a hearing based
upon BIS’s showing of an imminent
violation in accordance with section
766.24 of the Regulations.
It is therefore ordered:
First, that OLEG SERGEYEVICH
PATSULYA, with an address at 15811
Collins Ave Unit 4102, Sunny Isles
Beach, Florida 33160; VASILII
SERGEYEVICH BESEDIN, with an
address at 2960 NE 207th St, Unit 502,
Aventura, Florida 33160; MIC P&I, LLC,
with an address at 15811 Collins Ave,
Unit 4102, Sunny Isles Beach, FL 33160
and 2046 McKinley St., Ste 4,
Hollywood, FL 33020; and
INTERMODAL MALDIVES with an
address at 1st Floor—H. Maaram
Ameeru Ahmed Magu, Male, Republic
of Maldives; and when acting for or on
their behalf, any successors or assigns,
agents, or employees (each a ‘‘Denied
Person’’ and collectively the ‘‘Denied
Persons’’) may not, directly or
indirectly, participate in any way in any
transaction involving any commodity,
software or technology (hereinafter
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Frm 00008
Fmt 4703
Sfmt 4703
32183
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, 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, or in any other
activity subject to the EAR; 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 in any
other activity subject to the EAR.
Second, that no person may, directly
or indirectly, do any of the following:
A. Export or reexport to or on behalf
of a Denied Person any item subject to
the EAR;
B. Take any action that facilitates the
acquisition or attempted acquisition by
a Denied Person 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 a 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 a Denied Person of any
item subject to the EAR that has been
exported from the United States;
D. Obtain from a Denied Person 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; 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 a Denied
Person, or service any item, of whatever
origin, that is owned, possessed or
controlled by a Denied Person if such
service involves the use of any item
subject to the EAR 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, that JSC SMARTAVIA
AIRLINES with an address at
’’Arkhangelsk’’ airport, 4/1 Arkhangelsk
Russia, 163053, and when acting for or
on their behalf, any successors or
assigns, agents, or employees may not,
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19MYN1
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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.
Fourth, that no person may, directly
or indirectly, do any of the following:
A. Export, reexport, or transfer (incountry) to or on behalf of Smartavia
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
Smartavia 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 Smartavia 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 Smartavia 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 Smartavia 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
VerDate Sep<11>2014
18:30 May 18, 2023
Jkt 259001
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 Smartavia, or
service any item, of whatever origin,
that is owned, possessed or controlled
by Smartavia 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.
Fifth, 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 Oleg Sergeyevich
Patsulya, Vasilii Sergeyevich Besedin,
MIC P&I, LLC, Intermodal Maldives, or
JSC Smartavia Airlines by affiliation,
ownership, control, or position of
responsibility in the conduct of trade or
related services may also be made
subject to the provisions of this Order.
In accordance with the provisions of
section 766.24(e) of the EAR, Oleg
Sergeyevich Patsulya, Vasilii
Sergeyevich Besedin, MIC P&I, LLC,
Intermodal Maldives, and JSC Smartavia
Airlines 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. Respondents
Oleg Sergeyevich Patsulya, Vasilii
Sergeyevich Besedin, MIC P&I, LLC,
Intermodal Maldives, and JSC Smartavia
Airlines may oppose a request to renew
this Order by filing a written submission
with the Assistant Secretary 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 served
on each denied person and shall be
published in the Federal Register.
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
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. 2023–10750 Filed 5–18–23; 8:45 am]
BILLING CODE 3510–DT–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–146]
Certain Freight Rail Couplers and Parts
Thereof From the People’s Republic of
China: Final Affirmative Countervailing
Duty Determination and Final
Affirmative Critical Circumstances
Determination, In Part
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
certain freight rail couplers and parts
thereof (freight rail couplers) from the
People’s Republic of China (China)
during the period of investigation
January 1, 2021, through December 31,
2021.
DATES: Applicable May 19, 2023.
FOR FURTHER INFORMATION CONTACT:
Terre Keaton Stefanova or Paul Gill,
AD/CVD Operations, Office IX,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–1280 or
(202) 482–5673, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On March 3, 2023, Commerce
published the Preliminary
Determination of this investigation in
the Federal Register.1 We invited
interested parties to comment on the
Preliminary Determination. In March
2023, we received comments from
Strato Inc. (Strato) and Wabtec
Corporation (Wabtec), U.S. importers of
freight rail couplers from China.2 On
1 See Certain Freight Rail Couplers and Parts
Thereof from the People’s Republic of China:
Preliminary Affirmative Countervailing Duty
Determination and Preliminary Affirmative Critical
Circumstances Determination, 88 FR 13425 (March
3, 2023) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum
(PDM).
2 See Strato’s Letter, ‘‘Strato Administrative Case
Brief,’’ date March 23, 2023; and Wabtec’s Letter,
‘‘Case Brief for Final Negative Countervailing Duty
Determination and Final Negative Critical
E:\FR\FM\19MYN1.SGM
19MYN1
Agencies
[Federal Register Volume 88, Number 97 (Friday, May 19, 2023)]
[Notices]
[Pages 32181-32184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10750]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Oleg Sergeyevich Patsulya, 15811 Collins Ave., Unit 4102, Sunny
Isles Beach, Florida 33160; Vasilii Sergeyevich Besedin, 2960 NE 207th
St., Unit 502, Aventura, Florida 33160; MIC P&I, LLC, 15811 Collins
Ave., Unit 4102, Sunny Isles Beach, FL 33160 and 2046 McKinley St.,
Ste. 4, Hollywood, FL 33020; Intermodal Maldives, 1st Floor--H. Maaram,
Ameeru Ahmed Magu, Male, Republic of Maldives; JSC Smartavia Airlines,
''Arkhangelsk'' Airport, 4/1, Arkhangelsk Russia, 163053; Order
Temporarily Denying Export Privileges
Pursuant to section 766.24 of the Export Administration Regulations
(the ``Regulations'' or ``EAR''),\1\ the Bureau of Industry and
Security (``BIS''), U.S. Department of Commerce, through its Office of
Export Enforcement (``OEE''), has requested the issuance of an Order
temporarily denying, for a period of 180 days, the export privileges
under the Regulations of: Oleg Sergeyevich Patsulya, Vasilii
Sergeyevich Besedin, MIC P&I, LLC, Intermodal Maldives, and JSC
Smartavia Airlines. OEE's request and related information indicates
that these parties are located in the United States, the Republic of
Maldives, and/or the Russian Federation, at the respective addresses
listed on the caption page of this order and on pages 9-11, infra, and
that Patsulya and Besedin are Russian nationals who own, control and/or
are affiliated with MIC P&I, LLC.
---------------------------------------------------------------------------
\1\ The Regulations, currently codified at 15 CFR parts 730-774
(2020), originally issued pursuant to the Export Administration Act
(50 U.S.C. 4601-4623 (Supp. III 2015) (``EAA''), which lapsed on
August 21, 2001. The President, through Executive Order 13222 of
August 17, 2001 (3 CFR 2001 Comp. 783 (2002)), as extended by
successive Presidential Notices, continued the Regulations in 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 orders, rules, regulations, and other forms
of administrative action 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 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.
---------------------------------------------------------------------------
I. 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. 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
``[l]ack 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.
II. OEE'S Request for a Temporary Denial Order
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
[[Page 32182]]
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.
As of February 24, 2022, any item classified under any Export
Classification Control Number (``ECCN'') in Categories 3 through 9 of
the Commerce Control List (``CCL'') requires a license to be exported
or reexported to Russia. See 87 FR 12226 (Mar. 3, 2022). As of April 8,
2022, the license requirements for Russia were expanded to cover all
items on the CCL. See 87 FR 22130 (Apr. 14, 2022). These rules were
codified in title 15 CFR 746.8, which state, ``a license is required,
excluding deemed exports and deemed reexports, to export, reexport, or
transfer (in-country) to or within Russia or Belarus any item subject
to the EAR and specified in any Export Control Classification Number
(ECCN) on the CCL.''
In its request, OEE has presented evidence that Oleg Sergeyevich
Patsulya and Vasilii Sergeyevich Besedin, operating in the United
States and working together on behalf of MIC P&I, LLC (``MIC''), have
engaged in the attempted procurement, export, and diversion of U.S.-
origin commodities, including through Intermodal Maldives
(``Intermodal''), for ultimate end use in Russia without the proper BIS
export licenses. These items include civil aviation parts and
components. OEE has also presented evidence indicating that Patsulya
and Besedin have undertaken procurement efforts, in part, on behalf of
Russian airline JSC Smartavia Airlines (``Smartavia''), as well as
Rossiya Airlines \2\ and Pobeda Airlines,\3\ both Russian airlines on
the BIS Denied Persons List (``DPL'').
---------------------------------------------------------------------------
\2\ A TDO was first issued against Rossiya Airlines on May 20,
2022 and published in the Federal Register on May 25, 2022. See 87
FR 31856. The TDO was renewed on November 15, 2022 and published in
the Federal Register on November 21, 2022. See 87 FR 70780. The TDO
was renewed again on May 12, 2023.
\3\ A TDO was first issued against Pobeda Airlines on June 24,
2022 and published in the Federal Register on June 29, 2022. See 87
FR 38707. The TDO was renewed on December 20, 2022 and published in
the Federal Register on December 23, 2022. See 87 FR 78925.
---------------------------------------------------------------------------
A. Procurement Efforts for Russian Airlines
OEE's ongoing investigation has revealed that, between in or around
September and October 2022, Patsulya and Besedin, who live in the
United States, attempted to procure more than two million dollars of
U.S. origin civilian aircraft parts from one U.S. supplier, including
large quantities of wheels, tires, and brakes. In particular, OEE has
presented evidence that Patsulya and Besedin, acting as representatives
of MIC, attempted to procure multiple quantities of an aircraft brake
assembly, identified as Goodrich Part number 2-1740-1 (the ``Goodrich
brake assembly''), which is classified as ECCN 9A991.d, controlled for
Anti-terrorism reasons, and would require a license for export to
Russia. After Patsulya, Besedin, and MIC failed in their attempts to
purchase the Goodrich brake assembly from this supplier, they
subsequently purchased the brake assembly from another U.S. supplier.
OEE's investigation has also determined that, beginning in and
around May 2022, shortly prior to these procurement efforts, Patsulya
began communicating with various Russian entities, including parties on
the DPL, about supplying them with various aircraft parts and
components. For example, OEE has presented evidence that, in June 2022,
Smartavia provided Patsulya with a list of aircraft parts it sought to
obtain, including the Goodrich brake assembly. On July 14, 2022,
Patsulya emailed Smartavia with a quotation for delivery of various
aircraft parts and components to Smartavia in Moscow, including two
units of the Goodrich brake assembly. In August 2022, immediately after
receiving a quotation for the Goodrich brake assemblies from a U.S.
company, Patsulya emailed Smartavia again to offer two units for
$105,000 per unit. On August 16, 2022, Smartavia provided Patsulya with
a purchase order for the two units. Patsulya responded with an invoice,
identified as PI-0017-022, reflecting a unit price of $105,000 and then
subsequently sent himself an invoice, also identified as PI-0017-022,
purportedly from an intermediary company to MIC.
On August 22, 2022, Besedin received an email from a U.S. parts
supplier with information about five units of the Goodrich brake
available for purchase. Besedin provided the information to Patsulya,
who in turn sent Smartavia an invoice for five units of the Goodrich
brake assembly, reflecting a total cost of $515,000. On August 30,
2022, Smartavia provided Patsulya with proof of a wire transfer
reflecting a payment of $515,000.
OEE's request is also based on facts demonstrating that Patsulya
began communicating with representatives of Rossiya Airlines and Pobeda
Airlines about procurement of U.S. origin aircraft parts and components
while both airlines were on the DPL. Specifically, on August 31, 2022,
while Rossiya Airlines was subject to a TDO, Patsulya emailed a Rossiya
Airlines representative to offer procurement of U.S. origin aircraft
parts and supplies, representing himself and MIC as a supplier for
Smartavia and Russian Ministry of Defense affiliates. Additionally, in
October 2022, while Pobeda Airlines was subject to a TDO, Patsulya
communicated with a Pobeda Airlines representative about payment
options for the Goodrich brake assembly and the TDO imposed against the
airline.
B. Intermodal Maldives
As stated in OEE's request, OEE's investigation determined that
shipments to Russia were being routed through Intermodal, a company in
the Republic of Maldives. Based on evidence presented by OEE,
Intermodal first began receiving exports from the United States in May
of 2022 and, as of October 2022, had received approximately 212
shipments, the majority appearing to be aircraft parts. For example,
OEE's investigation identified the following shipments to Russia
between June and October 2022: (1) a Russian freight forwarder used
Intermodal to receive a shipment of U.S. origin civil aircraft parts;
(2) a Russian customer used Intermodal to forward and route lab
equipment to Russia without the knowledge of the U.S. exporter; and (3)
a shipment of directional drilling tools was sent to Moscow, Russia,
through Intermodal. None of the export control documents related to
these three shipments indicated that the items were destined for export
to Russia. OEE has also presented evidence that another shipment to
Intermodal which was destined for Russia contained a rotary actuator,
which was designated as EAR99. Although some of the non-aircraft parts
are designated as EAR99, OEE has reason to believe that a license would
have been required pursuant to section 746.5 of the EAR (Russian
industry sector sanctions) and that no such license was obtained.
OEE's request is also based on facts revealed during an end-use
check conducted by BIS at Intermodal on February 22, 2023. For example,
the end-use check determined that Intermodal is a designated cargo
sales agent for PJSC Aeroflot,\4\ another Russian airline that has been
on the BIS DPL since April 7, 2022. OEE also presented evidence that
four of the five shipments specifically inquired about
[[Page 32183]]
went to Russia, including one destined for Pobeda Airlines and another
for Russian airline UTair Aviation JSC (``UTair'').\5\ The destination
of the fifth shipment could not be determined.
---------------------------------------------------------------------------
\4\ A TDO was first issued against Aeroflot on April 7, 2022 and
published in the Federal Register on April 12, 2022. See 87 FR
21611. The TDO was renewed on October 3, 2022 and again on March 29,
2023. See 88 FR 19609.
\5\ A TDO was first issued against UTair on April 7, 2022, and
published in the Federal Register on April 12, 2022. See 87 FR
21616. The TDO was renewed on October 3, 2022 and again on March 29,
2023. See 88 FR 19911.
---------------------------------------------------------------------------
C. MIC and Intermodal Detentions
OEE has also presented evidence related to its November 29, 2022
detention of a shipment destined for Intermodal. Specifically, the
shipment detained by OEE included two units of the Goodrich brake
assemblies, classified as ECCN 9A991.d and controlled for Anti-
terrorism reasons. OEE's ongoing investigation revealed that the brake
assemblies were purchased by MIC and that Besedin personally traveled
to a warehouse location to inspect the brakes. Although the brake
assemblies would have required a license for export to Russia, no such
license was obtained. On January 3, 2023, OEE detained another shipment
of the Goodrich brake assemblies purchased by Patsulya and Besedin.
Although Besedin initially told the vendor that the brake assemblies
were destined for Intermodal, the information was later changed to
reflect shipping to Turkey after Besedin was alerted by a U.S. freight
forwarder of issues with shipping to Intermodal. Moreover, OEE's
requests include facts demonstrating that Patsulya and Besedin gave
various and conflicting information about the ultimate destination and
end user of the Goodrich brake assemblies.
D. Risk of Imminent Violation
As detailed in OEE's request and related information, since May
2022, Patsulya and Besedin, through MIC, have engaged in repeated
attempts to procure U.S. origin commodities for Russian end users,
including parties on the DPL. These efforts have involved multiple U.S.
suppliers, indicating that when one procurement attempt fails, Patsulya
and Besedin will simply continue engaging other suppliers. Moreover,
OEE's request demonstrates that they have been actively promoting
themselves as able to supply aircraft parts and components to Russian
airlines, including those on the DPL. As detailed above, OEE's request
also indicates that Smartavia has attempted to obtain U.S. origin
commodities, including the Goodrich brake assemblies, on multiple
occasions, and that Patsulya and Besedin self-identified as Smartavia's
supplier.
OEE's request also reflects that between May 18, 2022 and February
28, 2023, Intermodal was listed as the ultimate or intermediate
consignee on 248 exports valued at over $5.1 million and that Patsulya
and Besedin, through MIC, have made six attempts to export from the
United States, including one to Intermodal and a second initially
destined for Intermodal. Additionally, OEE has presented evidence that,
as recently as April 20, 2023, Patsulya and Besedin have been emailing
OEE agents in continued attempts to retrieve the detained aircraft
Goodrich brake assemblies, maintaining that they were intended for use
in Turkey and suggesting that their procurement efforts remain ongoing.
III. Findings
As described above, I find that the evidence presented by BIS
demonstrates that a violation of the Regulations by the above-captioned
parties is imminent in both time and degree of likelihood. As such, a
TDO is needed to give notice to persons and companies in the United
States and abroad that they should cease dealing with Oleg Sergeyevich
Patsulya, Vasilii Sergeyevich Besedin, MIC P&I, LLC, Intermodal
Maldives, and Smartavia Airlines in export or reexport transactions
involving items subject to the EAR. Such a TDO is consistent with the
public interest to preclude future violations of the Regulations given
the deliberate, covert, and determined nature of the misconduct and
clear disregard for complying with U.S. export control laws.
This Order is being issued on an ex parte basis without a hearing
based upon BIS's showing of an imminent violation in accordance with
section 766.24 of the Regulations.
It is therefore ordered:
First, that OLEG SERGEYEVICH PATSULYA, with an address at 15811
Collins Ave Unit 4102, Sunny Isles Beach, Florida 33160; VASILII
SERGEYEVICH BESEDIN, with an address at 2960 NE 207th St, Unit 502,
Aventura, Florida 33160; MIC P&I, LLC, with an address at 15811 Collins
Ave, Unit 4102, Sunny Isles Beach, FL 33160 and 2046 McKinley St., Ste
4, Hollywood, FL 33020; and INTERMODAL MALDIVES with an address at 1st
Floor--H. Maaram Ameeru Ahmed Magu, Male, Republic of Maldives; and
when acting for or on their behalf, any successors or assigns, agents,
or employees (each a ``Denied Person'' and collectively the ``Denied
Persons'') 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, 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, or in any other activity
subject to the EAR; 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 in any other activity subject to the EAR.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export or reexport to or on behalf of a Denied Person any item
subject to the EAR;
B. Take any action that facilitates the acquisition or attempted
acquisition by a Denied Person 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 a 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 a Denied Person of any item subject to
the EAR that has been exported from the United States;
D. Obtain from a Denied Person 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; 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 a Denied Person, or service any item,
of whatever origin, that is owned, possessed or controlled by a Denied
Person if such service involves the use of any item subject to the EAR
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, that JSC SMARTAVIA AIRLINES with an address at
''Arkhangelsk'' airport, 4/1 Arkhangelsk Russia, 163053, and when
acting for or on their behalf, any successors or assigns, agents, or
employees may not,
[[Page 32184]]
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.
Fourth, that no person may, directly or indirectly, do any of the
following:
A. Export, reexport, or transfer (in-country) to or on behalf of
Smartavia 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 Smartavia 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 Smartavia 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 Smartavia 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 Smartavia 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 Smartavia, or service any item, of
whatever origin, that is owned, possessed or controlled by Smartavia 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.
Fifth, 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 Oleg Sergeyevich Patsulya, Vasilii
Sergeyevich Besedin, MIC P&I, LLC, Intermodal Maldives, or JSC
Smartavia Airlines by affiliation, ownership, control, or position of
responsibility in the conduct of trade or related services may also be
made subject to the provisions of this Order.
In accordance with the provisions of section 766.24(e) of the EAR,
Oleg Sergeyevich Patsulya, Vasilii Sergeyevich Besedin, MIC P&I, LLC,
Intermodal Maldives, and JSC Smartavia Airlines 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. Respondents Oleg
Sergeyevich Patsulya, Vasilii Sergeyevich Besedin, MIC P&I, LLC,
Intermodal Maldives, and JSC Smartavia Airlines may oppose a request to
renew this Order by filing a written submission with the Assistant
Secretary 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 served on each denied person 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. 2023-10750 Filed 5-18-23; 8:45 am]
BILLING CODE 3510-DT-P