Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya obl., g. Ob, prospekt Mozzherina, d. 10 ofis 201; Order Renewing Temporary Denial of Export Privileges, 40205-40207 [2023-13162]
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Federal Register / Vol. 88, No. 118 / Wednesday, June 21, 2023 / Notices
lotter on DSK11XQN23PROD with NOTICES1
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 Nordwind 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,
Nordwind 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
Sections 766.23(c)(2) and 766.24(e)(3) of
the EAR, Pegas Touristik may, at any
time, appeal their inclusion as a related
person 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 Nordwind 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 Nordwind and Pegas Touristik and
shall be published in the Federal
Register.
This Order is effective immediately
and shall remain in effect for 180 days.
Dated: June 15, 2023.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2023–13160 Filed 6–20–23; 8:45 am]
BILLING CODE 3510–DT–P
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Siberian Airlines d/b/a S7 Airlines,
633104, Novosibirskaya obl., g. Ob,
prospekt Mozzherina, d. 10 ofis 201;
Order Renewing Temporary Denial of
Export Privileges
Pursuant to Section 766.24 of the
Export Administration Regulations, 15
CFR parts 730–774 (2021) (‘‘EAR’’ or
‘‘the Regulations’’),1 I hereby grant the
request of the Office of Export
Enforcement (‘‘OEE’’) to renew the
temporary denial order (‘‘TDO’’) issued
in this matter on December 20, 2022. I
find that renewal of this order is
necessary in the public interest to
prevent an imminent violation of the
Regulations.
I. Procedural History
On June 24, 2022, I signed an order
denying the export privileges of
Siberian Airlines d/b/a S7 Airlines
(‘‘Siberian’’) for a period of 180 days on
the ground that issuance of the order
was necessary in the public interest to
prevent an imminent violation of the
Regulations. The order was issued ex
parte pursuant to Section 766.24(a) of
the Regulations and was effective upon
issuance.2 This temporary denial order
was subsequently renewed in
accordance with Section 766.24(d) of
the Regulations.3 The renewal order
issued on December 20, 2022, and was
effective upon issuance.4
1 On August 13, 2018, the President signed into
law the John S. McCain National Defense
Authorization Act for Fiscal Year 2019, which
includes the Export Control Reform Act of 2018, 50
U.S.C. 4801–4852 (‘‘ECRA’’). While Section 1766 of
ECRA repeals the provisions of the Export
Administration Act, 50 U.S.C. App. 2401 et seq.
(‘‘EAA’’), (except for three sections which are
inapplicable here), Section 1768 of ECRA provides,
in pertinent part, that all orders, rules, regulations,
and other forms of administrative action that were
made or issued under the EAA, including as
continued in effect pursuant to to the International
Emergency Economic Powers Act, 50 U.S.C. 1701
et seq. (‘‘IEEPA’’), and were in effect as of ECRA’s
date of enactment (August 13, 2018), shall continue
in effect according to their terms until modified,
superseded, set aside, or revoked through action
undertaken pursuant to the authority provided
under ECRA. Moreover, Section 1761(a)(5) of ECRA
authorizes the issuance of temporary denial orders.
50 U.S.C. 4820(a)(5).
2 The TDO was published in the Federal Register
on June 29, 2022 (87 FR 38709).
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 December 20, 2022 renewal order was
published in the Federal Register on December 23,
2022 (87 FR 78921).
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40205
On May 18, 2023, BIS, through OEE,
submitted a written request for renewal
of the TDO that issued on December 20,
2022. The written request was made
more than 20 days before the TDO’s
scheduled expiration. A copy of the
renewal request was sent to Siberian in
accordance with Sections 766.5 and
766.24(d) of the Regulations. No
opposition to the renewal of the TDO
has been received.
II. Renewal of the TDO
A. Legal Standard
Pursuant to Section 766.24, BIS may
issue an order temporarily denying a
respondent’s export privileges upon a
showing that the order is necessary in
the public interest to prevent an
‘‘imminent violation’’ of the
Regulations, or any order, license or
authorization issued thereunder. 15 CFR
766.24(b)(1) and 766.24(d). ‘‘A violation
may be ‘imminent’ either in time or
degree of likelihood.’’ 15 CFR
766.24(b)(3). BIS may show ‘‘either that
a violation is about to occur, or that the
general circumstances of the matter
under investigation or case under
criminal or administrative charges
demonstrate a likelihood of future
violations.’’ Id. As to the likelihood of
future violations, BIS may show that the
violation under investigation or charge
‘‘is significant, deliberate, covert and/or
likely to occur again, rather than
technical or negligent[.]’’ Id. A ‘‘lack of
information establishing the precise
time a violation may occur does not
preclude a finding that a violation is
imminent, so long as there is sufficient
reason to believe the likelihood of a
violation.’’ Id.
B. The TDO and BIS’s Request for
Renewal
The U.S. Commerce Department,
through BIS, responded to the Russian
Federation’s (‘‘Russia’s’’) further
invasion of Ukraine by implementing a
sweeping series of stringent export
controls that severely restrict Russia’s
access to technologies and other items
that it needs to sustain its aggressive
military capabilities. These controls
primarily target Russia’s defense,
aerospace, and maritime sectors and are
intended to cut off Russia’s access to
vital technological inputs, atrophy key
sectors of its industrial base, and
undercut Russia’s strategic ambitions to
exert influence on the world stage.
Effective February 24, 2022, BIS
imposed expansive controls on 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)
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Federal Register / Vol. 88, No. 118 / Wednesday, June 21, 2023 / Notices
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.
OEE’s request for renewal is based
upon the facts underlying the issuance
Tail No.
RA–73667
RA–73667
RA–73667
RA–73667
RA–73667
RA–73667
RA–73667
RA–73668
RA–73668
RA–73668
RA–73668
RA–73668
RA–73670
RA–73670
RA–73670
RA–73670
RA–73670
RA–73670
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Serial No.
Aircraft type
41707
41707
41707
41707
41707
41707
41707
41709
41709
41709
41709
41709
41710
41710
41710
41710
41710
41710
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
737–8LP
III. Findings
lotter on DSK11XQN23PROD with NOTICES1
Under the applicable standard set
forth in Section 766.24 of the
Regulations and my review of the entire
record, I find that the evidence
presented by BIS convincingly
demonstrates that Siberian has acted in
violation of the Regulations and the
TDO; that such violations have been
significant, deliberate and covert; and
that given the foregoing and the nature
of the matters under investigation, there
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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of the initial TDO, the renewal order
subsequently issued in this matter, and
evidence developed during this
investigation. These facts and evidence
demonstrate that Siberian continues to
act in blatant disregard for U.S. export
controls and the TDO. Specifically, the
initial TDO, issued on June 24, 2022,
was based on evidence that Siberian
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, Atyrau, Kazakhstan, Bishkek,
Kyrgyzstan, and Urgench, Uzbekistan,
without the required BIS authorization.7
As discussed in the December 20,
2022 renewal order, evidence presented
by BIS indicated that, after the renewal
order issued, Siberian continued to
operate aircraft subject to the EAR and
classified under ECCN 9A991.b on
flights into Russia in violation of the
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
Regulations and the TDO itself.8
Specifically, the December 20, 2022
renewal order detailed Siberian’s
continued operation of aircraft subject
to the EAR, including, but not limited
to, on flights into Russia from Bangkok,
Thailand, Antalya Turkey, and
Tashkent, Uzbekistan.9
In its May 18, 2023 request for
renewal of the TDO, BIS has submitted
evidence that Siberian continues to
operate in violation of the December 20,
2022 TDO and/or the Regulations by
operating aircraft subject to the EAR and
classified under ECCN 9A991.b into
Russia. Specifically, BIS’s evidence and
related investigation indicates that after
the issuance of the TDO, Siberian
continued to fly aircraft into Russia in
violation of the EAR, including flights
from Bangkok, Thailand, Antalya,
Turkey, Istanbul, Turkey, Fergana,
Uzbekistan, and Tashkent, Uzbekistan.
Information about those flights includes,
but is not limited to, the following:
Departure/arrival cities
Dates
Istanbul, TR/Moscow, RU .......................................
Urgench, UZ/Moscow, RU ......................................
Antalya, TR/Moscow, RU ........................................
Antalya, TR/Moscow, RU ........................................
Urgench, UZ/Moscow, RU ......................................
Yerevan, AM/Novosibirisk, RU ................................
Antalya, TR/Moscow, RU ........................................
Beijing, CN/Irkutsk, RU ...........................................
Urgench, UZ/Moscow, RU ......................................
Istanbul, TR/Moscow, RU .......................................
Antalya, TR/Moscow, RU ........................................
Bangkok, TH/Irkutsk, RU ........................................
Bangkok, TH/Irkutsk, RU ........................................
Bukhara, UZ/Novosibirsk, RU .................................
Dubai, AE/Novosibirsk, RU .....................................
Antalya, TR/Novosibirsk, RU ..................................
Beijing, CN/Irkutsk, RU ...........................................
Fergana, UZ/Novosibirsk, RU .................................
May 20, 2023.
May 22, 2023.
May 25, 2023.
May 29, 2023.
May 31, 2023.
June 5, 2023.
June 12, 2023.
May 27, 2023.
June 1, 2023.
June 2, 2023.
June 6, 2023.
June 13, 2023.
May 20, 2023.
May 24, 2023.
May 26, 2023.
May 31, 2023.
June 1, 2023.
June 10, 2023.
is a likelihood of imminent violations.
Therefore, renewal of the TDO is
necessary in the public interest to
prevent imminent violation of the
Regulations and to give notice to
companies and individuals in the
United States and abroad that they
should avoid dealing with Siberian, in
connection with export and reexport
transactions involving items subject to
the Regulations and in connection with
any other activity subject to the
Regulations.
7 Publicly available flight tracking information
shows, for example, that on March 10, 2022, serial
number (‘‘SN’’) 41400 flew from Atyrau,
Kazakhstan to Moscow, Russia. On May 1, 2022, SN
41707 flew from Bishkek, Kyrgyzstan to
Novosibirsk, Russia and, on March 4, 2022, SN
41841 flew from Urgench, Uzbekistan to Moscow,
Russia.
8 Engaging in conduct prohibited by a denial
order violates the Regulations. 15 CFR 764.1(a) and
(k).
9 Publicly available flight tracking information
shows, for example, that on November 30, 2022, SN
41709 flew from Bangkok, Thailand to Irkutsk,
Russia. SN 41707 flew from Antalya, Turkey to
Novosibirisk, Russia on November 19, 2022, and
from Urgench, Uzbekistan to Moscow, Russia on
December 10, 2022.
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IV. Order
It is therefore ordered:
First, Siberian Airlines d/b/a S7
Airlines, 633104, Novosibirskaya obl., g.
Ob, prospekt Mozzherina, d. 10 ofis 201,
when acting for or on their behalf, any
successors or assigns, agents, or
employees may not, directly or
indirectly, participate in any way in any
transaction involving any commodity,
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Federal Register / Vol. 88, No. 118 / Wednesday, June 21, 2023 / Notices
software or technology (hereinafter
collectively referred to as ‘‘item’’)
exported or to be exported from the
United States that is subject to the EAR,
or in any other activity subject to the
EAR including, but not limited to:
A. Applying for, obtaining, or using
any license (except directly related to
safety of flight), license exception, or
export control document;
B. Carrying on negotiations
concerning, or ordering, buying,
receiving, using, selling, delivering,
storing, disposing of, forwarding,
transporting, financing, or otherwise
servicing in any way, any transaction
involving any item exported or to be
exported from the United States that is
subject to the EAR except directly
related to safety of flight and authorized
by BIS pursuant to Section 764.3(a)(2) of
the Regulations, or engaging in any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations; or
C. Benefitting in any way from any
transaction involving any item exported
or to be exported from the United States
that is subject to the EAR, or from any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations.
Second, that no person may, directly
or indirectly, do any of the following:
A. Export, reexport, or transfer (incountry) to or on behalf of Siberian any
item subject to the EAR except directly
related to safety of flight and authorized
by BIS pursuant to Section 764.3(a)(2) of
the Regulations;
B. Take any action that facilitates the
acquisition or attempted acquisition by
Siberian of the ownership, possession,
or control of any item subject to the EAR
that has been or will be exported from
the United States, including financing
or other support activities related to a
transaction whereby Siberian acquires
or attempts to acquire such ownership,
possession or control except directly
related to safety of flight and authorized
by BIS pursuant to Section 764.3(a)(2) of
the Regulations;
C. Take any action to acquire from or
to facilitate the acquisition or attempted
acquisition from Siberian of any item
subject to the EAR that has been
exported from the United States except
directly related to safety of flight and
authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations;
D. Obtain from Siberian in the United
States any item subject to the EAR with
knowledge or reason to know that the
item will be, or is intended to be,
exported from the United States except
directly related to safety of flight and
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18:36 Jun 20, 2023
Jkt 259001
authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations; or
E. Engage in any transaction to service
any item subject to the EAR that has
been or will be exported from the
United States and which is owned,
possessed or controlled by Siberian, or
service any item, of whatever origin,
that is owned, possessed or controlled
by Siberian if such service involves the
use of any item subject to the EAR that
has been or will be exported from the
United States except directly related to
safety of flight and authorized by BIS
pursuant to Section 764.3(a)(2) of the
Regulations. For purposes of this
paragraph, servicing means installation,
maintenance, repair, modification, or
testing.
Third, that, after notice and
opportunity for comment as provided in
section 766.23 of the EAR, any other
person, firm, corporation, or business
organization related to Siberian by
ownership, control, position of
responsibility, affiliation, or other
connection in the conduct of trade or
business may also be made subject to
the provisions of this Order.
In accordance with the provisions of
Sections 766.24(e) of the EAR, Siberian
may, at any time, appeal this Order by
filing a full written statement in support
of the appeal with the Office of the
Administrative Law Judge, U.S. Coast
Guard ALJ Docketing Center, 40 South
Gay Street, Baltimore, Maryland 21202–
4022.
In accordance with the provisions of
Section 766.24(d) of the EAR, BIS may
seek renewal of this Order by filing a
written request not later than 20 days
before the expiration date. A renewal
request may be opposed by Siberian as
provided in Section 766.24(d), by filing
a written submission with the Assistant
Secretary of Commerce for Export
Enforcement, which must be received
not later than seven days before the
expiration date of the Order.
A copy of this Order shall be provided
to Siberian, and shall be published in
the Federal Register.
This Order is effective immediately
and shall remain in effect for 180 days.
Dated: June 15, 2023.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2023–13162 Filed 6–20–23; 8:45 am]
BILLING CODE 3510–DT–P
PO 00000
40207
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–887]
Carbon and Alloy Steel Cut-to-Length
Plate From the Republic of Korea:
Preliminary Results of Antidumping
Duty Administrative Review; 2021–
2022
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) is conducting an
administrative review of the
antidumping duty order on carbon and
alloy steel cut-to-length plate (CTL
plate) from the Republic of Korea
(Korea). The period of review (POR) is
May 1, 2021, through April 30, 2022.
The review covers one producer and/or
exporter of the subject merchandise,
POSCO, POSCO International
Corporation and its affiliated companies
(collectively, the POSCO single entity).
We preliminarily determine that sales of
subject merchandise by the POSCO
single entity were not made at prices
below normal value (NV). Interested
parties are invited to comment on these
preliminary results.
DATES: Applicable June 21, 2023.
FOR FURTHER INFORMATION CONTACT:
Jaron Moore or William Horn, AD/CVD
Operations, Office VIII, Enforcement
and Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–3640 or (202) 482–4868,
respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On July 14, 2022, based on timely
requests for review, in accordance with
19 CFR 351.221(c)(1)(i), we published
the initiation of an administrative
review on CTL plate from Korea
produced and/or exported by POSCO.1
On December 12, 2022, we extended
the preliminary results of this review to
no later than May 31, 2023.2 For a
complete description of the events that
followed the initiation of this review,
see the Preliminary Decision
Memorandum.3
1 See Initiation of Antidumping and
Countervailing Duty Administration Reviews, 87 FR
42144 (July 14, 2022) (Initiation Notice).
2 See Memorandum, ‘‘Extension of Deadline for
the Preliminary Results of the 2021–2022
Antidumping Duty Administrative Review,’’ dated
December 12, 2022.
3 See Memorandum, ‘‘Decision Memorandum for
Preliminary Results of Antidumping Duty
Continued
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Agencies
[Federal Register Volume 88, Number 118 (Wednesday, June 21, 2023)]
[Notices]
[Pages 40205-40207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13162]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya obl.,
g. Ob, prospekt Mozzherina, d. 10 ofis 201; Order Renewing Temporary
Denial of Export Privileges
Pursuant to Section 766.24 of the Export Administration
Regulations, 15 CFR parts 730-774 (2021) (``EAR'' or ``the
Regulations''),\1\ I hereby grant the request of the Office of Export
Enforcement (``OEE'') to renew the temporary denial order (``TDO'')
issued in this matter on December 20, 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 to the International Emergency Economic Powers
Act, 50 U.S.C. 1701 et seq. (``IEEPA''), and were in effect as of
ECRA's date of enactment (August 13, 2018), shall continue in effect
according to their terms until modified, superseded, set aside, or
revoked through action undertaken pursuant to the authority provided
under ECRA. Moreover, Section 1761(a)(5) of ECRA authorizes the
issuance of temporary denial orders. 50 U.S.C. 4820(a)(5).
---------------------------------------------------------------------------
I. Procedural History
On June 24, 2022, I signed an order denying the export privileges
of Siberian Airlines d/b/a S7 Airlines (``Siberian'') for a period of
180 days on the ground that issuance of the order was necessary in the
public interest to prevent an imminent violation of the Regulations.
The order was issued ex parte pursuant to Section 766.24(a) of the
Regulations and was effective upon issuance.\2\ This temporary denial
order was subsequently renewed in accordance with Section 766.24(d) of
the Regulations.\3\ The renewal order issued on December 20, 2022, and
was effective upon issuance.\4\
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\2\ The TDO was published in the Federal Register on June 29,
2022 (87 FR 38709).
\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 December 20, 2022 renewal order was published in the
Federal Register on December 23, 2022 (87 FR 78921).
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On May 18, 2023, BIS, through OEE, submitted a written request for
renewal of the TDO that issued on December 20, 2022. The written
request was made more than 20 days before the TDO's scheduled
expiration. A copy of the renewal request was sent to Siberian in
accordance with Sections 766.5 and 766.24(d) of the Regulations. No
opposition to the renewal of the TDO has been received.
II. Renewal of the TDO
A. Legal Standard
Pursuant to Section 766.24, BIS may issue an order temporarily
denying a respondent's export privileges upon a showing that the order
is necessary in the public interest to prevent an ``imminent
violation'' of the Regulations, or any order, license or authorization
issued thereunder. 15 CFR 766.24(b)(1) and 766.24(d). ``A violation may
be `imminent' either in time or degree of likelihood.'' 15 CFR
766.24(b)(3). BIS may show ``either that a violation is about to occur,
or that the general circumstances of the matter under investigation or
case under criminal or administrative charges demonstrate a likelihood
of future violations.'' Id. As to the likelihood of future violations,
BIS may show that the violation under investigation or charge ``is
significant, deliberate, covert and/or likely to occur again, rather
than technical or negligent[.]'' Id. A ``lack of information
establishing the precise time a violation may occur does not preclude a
finding that a violation is imminent, so long as there is sufficient
reason to believe the likelihood of a violation.'' Id.
B. The TDO and BIS's Request for Renewal
The U.S. Commerce Department, through BIS, responded to the Russian
Federation's (``Russia's'') further invasion of Ukraine by implementing
a sweeping series of stringent export controls that severely restrict
Russia's access to technologies and other items that it needs to
sustain its aggressive military capabilities. These controls primarily
target Russia's defense, aerospace, and maritime sectors and are
intended to cut off Russia's access to vital technological inputs,
atrophy key sectors of its industrial base, and undercut Russia's
strategic ambitions to exert influence on the world stage. Effective
February 24, 2022, BIS imposed expansive controls on aviation-related
(e.g., Commerce Control List Categories 7 and 9) items to Russia,
including a license requirement for the export, reexport or transfer
(in-country)
[[Page 40206]]
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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OEE's request for renewal is based upon the facts underlying the
issuance of the initial TDO, the renewal order subsequently issued in
this matter, and evidence developed during this investigation. These
facts and evidence demonstrate that Siberian continues to act in
blatant disregard for U.S. export controls and the TDO. Specifically,
the initial TDO, issued on June 24, 2022, was based on evidence that
Siberian 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, Atyrau, Kazakhstan, Bishkek, Kyrgyzstan, and
Urgench, Uzbekistan, without the required BIS authorization.\7\
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\7\ Publicly available flight tracking information shows, for
example, that on March 10, 2022, serial number (``SN'') 41400 flew
from Atyrau, Kazakhstan to Moscow, Russia. On May 1, 2022, SN 41707
flew from Bishkek, Kyrgyzstan to Novosibirsk, Russia and, on March
4, 2022, SN 41841 flew from Urgench, Uzbekistan to Moscow, Russia.
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As discussed in the December 20, 2022 renewal order, evidence
presented by BIS indicated that, after the renewal order issued,
Siberian continued to operate aircraft subject to the EAR and
classified under ECCN 9A991.b on flights into Russia in violation of
the Regulations and the TDO itself.\8\ Specifically, the December 20,
2022 renewal order detailed Siberian's continued operation of aircraft
subject to the EAR, including, but not limited to, on flights into
Russia from Bangkok, Thailand, Antalya Turkey, and Tashkent,
Uzbekistan.\9\
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\8\ Engaging in conduct prohibited by a denial order violates
the Regulations. 15 CFR 764.1(a) and (k).
\9\ Publicly available flight tracking information shows, for
example, that on November 30, 2022, SN 41709 flew from Bangkok,
Thailand to Irkutsk, Russia. SN 41707 flew from Antalya, Turkey to
Novosibirisk, Russia on November 19, 2022, and from Urgench,
Uzbekistan to Moscow, Russia on December 10, 2022.
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In its May 18, 2023 request for renewal of the TDO, BIS has
submitted evidence that Siberian continues to operate in violation of
the December 20, 2022 TDO and/or the Regulations by operating aircraft
subject to the EAR and classified under ECCN 9A991.b into Russia.
Specifically, BIS's evidence and related investigation indicates that
after the issuance of the TDO, Siberian continued to fly aircraft into
Russia in violation of the EAR, including flights from Bangkok,
Thailand, Antalya, Turkey, Istanbul, Turkey, Fergana, Uzbekistan, and
Tashkent, Uzbekistan. Information about those flights includes, but is
not limited to, the following:
----------------------------------------------------------------------------------------------------------------
Departure/arrival
Tail No. Serial No. Aircraft type cities Dates
----------------------------------------------------------------------------------------------------------------
RA-73667......................... 41707 737-8LP (B738) Istanbul, TR/Moscow, May 20, 2023.
RU.
RA-73667......................... 41707 737-8LP (B738) Urgench, UZ/Moscow, May 22, 2023.
RU.
RA-73667......................... 41707 737-8LP (B738) Antalya, TR/Moscow, May 25, 2023.
RU.
RA-73667......................... 41707 737-8LP (B738) Antalya, TR/Moscow, May 29, 2023.
RU.
RA-73667......................... 41707 737-8LP (B738) Urgench, UZ/Moscow, May 31, 2023.
RU.
RA-73667......................... 41707 737-8LP (B738) Yerevan, AM/ June 5, 2023.
Novosibirisk, RU.
RA-73667......................... 41707 737-8LP (B738) Antalya, TR/Moscow, June 12, 2023.
RU.
RA-73668......................... 41709 737-8LP (B738) Beijing, CN/Irkutsk, May 27, 2023.
RU.
RA-73668......................... 41709 737-8LP (B738) Urgench, UZ/Moscow, June 1, 2023.
RU.
RA-73668......................... 41709 737-8LP (B738) Istanbul, TR/Moscow, June 2, 2023.
RU.
RA-73668......................... 41709 737-8LP (B738) Antalya, TR/Moscow, June 6, 2023.
RU.
RA-73668......................... 41709 737-8LP (B738) Bangkok, TH/Irkutsk, June 13, 2023.
RU.
RA-73670......................... 41710 737-8LP (B738) Bangkok, TH/Irkutsk, May 20, 2023.
RU.
RA-73670......................... 41710 737-8LP (B738) Bukhara, UZ/ May 24, 2023.
Novosibirsk, RU.
RA-73670......................... 41710 737-8LP (B738) Dubai, AE/ May 26, 2023.
Novosibirsk, RU.
RA-73670......................... 41710 737-8LP (B738) Antalya, TR/ May 31, 2023.
Novosibirsk, RU.
RA-73670......................... 41710 737-8LP (B738) Beijing, CN/Irkutsk, June 1, 2023.
RU.
RA-73670......................... 41710 737-8LP (B738) Fergana, UZ/ June 10, 2023.
Novosibirsk, RU.
----------------------------------------------------------------------------------------------------------------
III. Findings
Under the applicable standard set forth in Section 766.24 of the
Regulations and my review of the entire record, I find that the
evidence presented by BIS convincingly demonstrates that Siberian has
acted in violation of the Regulations and the TDO; that such violations
have been significant, deliberate and covert; and that given the
foregoing and the nature of the matters under investigation, there is a
likelihood of imminent violations. Therefore, renewal of the TDO is
necessary in the public interest to prevent imminent violation of the
Regulations and to give notice to companies and individuals in the
United States and abroad that they should avoid dealing with Siberian,
in connection with export and reexport transactions involving items
subject to the Regulations and in connection with any other activity
subject to the Regulations.
IV. Order
It is therefore ordered:
First, Siberian Airlines d/b/a S7 Airlines, 633104, Novosibirskaya
obl., g. Ob, prospekt Mozzherina, d. 10 ofis 201, when acting for or on
their behalf, any successors or assigns, agents, or employees may not,
directly or indirectly, participate in any way in any transaction
involving any commodity,
[[Page 40207]]
software or technology (hereinafter collectively referred to as
``item'') exported or to be exported from the United States that is
subject to the EAR, or in any other activity subject to the EAR
including, but not limited to:
A. Applying for, obtaining, or using any license (except directly
related to safety of flight), license exception, or export control
document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the EAR except directly related to
safety of flight and authorized by BIS pursuant to Section 764.3(a)(2)
of the Regulations, or engaging in any other activity subject to the
EAR except directly related to safety of flight and authorized by BIS
pursuant to Section 764.3(a)(2) of the Regulations; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is subject to
the EAR, or from any other activity subject to the EAR except directly
related to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export, reexport, or transfer (in-country) to or on behalf of
Siberian any item subject to the EAR except directly related to safety
of flight and authorized by BIS pursuant to Section 764.3(a)(2) of the
Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by Siberian of the ownership, possession, or control of any
item subject to the EAR that has been or will be exported from the
United States, including financing or other support activities related
to a transaction whereby Siberian acquires or attempts to acquire such
ownership, possession or control except directly related to safety of
flight and authorized by BIS pursuant to Section 764.3(a)(2) of the
Regulations;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from Siberian of any item subject to the EAR
that has been exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations;
D. Obtain from Siberian in the United States any item subject to
the EAR with knowledge or reason to know that the item will be, or is
intended to be, exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations; or
E. Engage in any transaction to service any item subject to the EAR
that has been or will be exported from the United States and which is
owned, possessed or controlled by Siberian, or service any item, of
whatever origin, that is owned, possessed or controlled by Siberian if
such service involves the use of any item subject to the EAR that has
been or will be exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to Section
764.3(a)(2) of the Regulations. For purposes of this paragraph,
servicing means installation, maintenance, repair, modification, or
testing.
Third, that, after notice and opportunity for comment as provided
in section 766.23 of the EAR, any other person, firm, corporation, or
business organization related to Siberian by ownership, control,
position of responsibility, affiliation, or other connection in the
conduct of trade or business may also be made subject to the provisions
of this Order.
In accordance with the provisions of Sections 766.24(e) of the EAR,
Siberian may, at any time, appeal this Order by filing a full written
statement in support of the appeal with the Office of the
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40
South Gay Street, Baltimore, Maryland 21202-4022.
In accordance with the provisions of Section 766.24(d) of the EAR,
BIS may seek renewal of this Order by filing a written request not
later than 20 days before the expiration date. A renewal request may be
opposed by Siberian as provided in Section 766.24(d), by filing a
written submission with the Assistant Secretary of Commerce for Export
Enforcement, which must be received not later than seven days before
the expiration date of the Order.
A copy of this Order shall be provided to Siberian, and shall be
published in the Federal Register.
This Order is effective immediately and shall remain in effect for
180 days.
Dated: June 15, 2023.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2023-13162 Filed 6-20-23; 8:45 am]
BILLING CODE 3510-DT-P