Order Renewing Temporary Denial of Export Privileges; UTair Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region, Russia 628012, 66802-66805 [2023-21171]
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Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices
(3) Email: program.intake@usda.gov.
USDA is an equal opportunity
provider, employer, and lender.
Christopher A. McLean,
Acting Administrator, Rural Utilities Service,
USDA Rural Development.
[FR Doc. 2023–21129 Filed 9–27–23; 8:45 am]
BILLING CODE 3410–15–P
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Order No. 2151]
ddrumheller on DSK120RN23PROD with NOTICES1
Reorganization of Foreign-Trade Zone
29 (Expansion of Service Area) Under
Alternative Site Framework; Louisville,
Kentucky
Pursuant to its authority under the
Foreign-Trade Zones Act of June 18,
1934, as amended (19 U.S.C. 81a–81u),
the Foreign-Trade Zones Board (the
Board) adopts the following Order:
Whereas, the Foreign-Trade Zones
(FTZ) Act provides for ‘‘. . . the
establishment . . . of foreign-trade
zones in ports of entry of the United
States, to expedite and encourage
foreign commerce, and for other
purposes,’’ and authorizes the Board to
grant to qualified corporations the
privilege of establishing foreign-trade
zones in or adjacent to U.S. Customs
and Border Protection ports of entry;
Whereas, the Board adopted the
alternative site framework (ASF) (15
CFR 400.2(c)) as an option for the
establishment or reorganization of
zones;
Whereas, the Louisville & Jefferson
County Riverport Authority, grantee of
Foreign-Trade Zone 29, submitted an
application to the Board (FTZ Docket B–
3–2023, docketed January 9, 2023) for
authority to expand the service area of
the zone to include Christian, Todd,
Logan, Simpson, Warren, Allen, and
Barren Counties, Kentucky and to
include two additional subzones (for
Southern Kentucky Warehousing &
Fulfillment, LLC and Envision AESC
Bowling Green LLC), as described in the
application, adjacent to the Nashville
Customs and Border Protection port of
entry;
Whereas, notice inviting public
comment was given in the Federal
Register (88 FR 2322–2323, January 13,
2023) and the application has been
processed pursuant to the FTZ Act and
the Board’s regulations; and,
Whereas, the Board adopts the
findings and recommendations of the
examiner’s report, and finds that the
requirements of the FTZ Act and the
Board’s regulations would be satisfied if
VerDate Sep<11>2014
18:09 Sep 27, 2023
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approval is limited to the proposed
subzone for Envision AESC Bowling
Green LLC;
Now, therefore, the Board hereby
approves subzone status at the facility of
Envision AESC Bowling Green LLC,
located in Bowling Green, Kentucky
(Subzone 29T), as described in the
application and Federal Register notice,
subject to the FTZ Act and the Board’s
regulations, including section 400.13.
Dated: September 22, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and
Compliance, Alternate Chairman, ForeignTrade Zones Board.
[FR Doc. 2023–21188 Filed 9–27–23; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Temporary Denial of
Export Privileges; UTair Aviation JSC,
Khanty-Mansiysk Airport, Tyumen
Region, Russia 628012
Pursuant to section 766.24 of the
Export Administration Regulations, 15
CFR parts 730–774 (‘‘EAR’’ or ‘‘the
Regulations’’),1 I hereby grant the
request of the Office of Export
Enforcement (‘‘OEE’’) to renew the
temporary denial order (‘‘TDO’’) issued
in this matter on October 3, 2022. I find
that renewal of this order is necessary
in the public interest to prevent an
imminent violation of the Regulations
and that renewal for an extended period
is appropriate because UTair Aviation
JSC (‘‘UTair’’) has engaged in a pattern
of repeated, ongoing and/or continuous
apparent violations of the EAR.
I. Procedural History
On April 7, 2022, I signed an order
denying UTair’s export privileges for a
period of 180 days on the ground that
issuance of the order was necessary in
1 On August 13, 2018, the President signed into
law the John S. McCain National Defense
Authorization Act for Fiscal Year 2019, which
includes the Export Control Reform Act of 2018, 50
U.S.C. 4801–4852 (‘‘ECRA’’). While section 1766 of
ECRA repeals the provisions of the Export
Administration Act, 50 U.S.C. App. 2401 et seq.
(‘‘EAA’’), (except for three sections which are
inapplicable here), section 1768 of ECRA provides,
in pertinent part, that all orders, rules, regulations,
and other forms of administrative action that were
made or issued under the EAA, including as
continued in effect pursuant to the International
Emergency Economic Powers Act, 50 U.S.C. 1701
et seq. (‘‘IEEPA’’), and were in effect as of ECRA’s
date of enactment (August 13, 2018), shall continue
in effect according to their terms until modified,
superseded, set aside, or revoked through action
undertaken pursuant to the authority provided
under ECRA. Moreover, section 1761(a)(5) of ECRA
authorizes the issuance of temporary denial orders.
50 U.S.C. 4820(a)(5).
PO 00000
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the public interest to prevent an
imminent violation of the Regulations.
The order was issued ex parte pursuant
to section 766.24(a) of the Regulations
and was effective upon issuance.2 This
temporary denial order was
subsequently renewed in accordance
with section 766.24(d) of the
Regulations.3 The renewal order issued
on October 3, 2022 and was effective
upon issuance.4 A second renewal order
issued on March 29, 2023 and was also
effective upon issuance.5
On September 5, 2023, BIS, through
OEE, submitted a written request for
renewal of the TDO that issued on
March 29, 2023. The written request
was made more than 20 days before the
TDO’s scheduled expiration and, given
the temporary suspension of
international mail service to Russia,
OEE has attempted to deliver a copy of
the renewal request to UTair by
alternative means 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
CFR766.24(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
2 The TDO was published in the Federal Register
on April 12, 2022 (87 FR 21616).
3 At the time of the renewal, section 766.24(d)
provided that BIS may seek renewal of a temporary
denial order for additional 180-day renewal
periods, if it believes that renewal is necessary in
the public interest to prevent an imminent
violation. Renewal requests are to be made in
writing no later than 20 days before the scheduled
expiration date of a temporary denial order.
4 The October 3, 2022 renewal order was
published in the Federal Register on October 7,
2022 (87 FR 60987).
5 The March 29, 2023 renewal order was
published in the Federal Register on April 4, 2023
(88 FR 19911).
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Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices
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.
If BIS believes that renewal of a denial
order is necessary in the public interest
to prevent an imminent violation, it may
file a written request for renewal, with
any modifications if appropriate. 15
CFR 766.24(d)(1). The written request,
which must be filed no later than 20
days prior to the TDO’s expiration,
should set forth the basis for BIS’s belief
that renewal is necessary, including any
additional or changed circumstances. Id.
‘‘In cases demonstrating a pattern of
repeated, ongoing and/or continuous
apparent violations, BIS may request the
renewal of a temporary denial order for
an additional period not exceeding one
year.’’ 6 Id.
B. The TDO and BIS’s Request for
Renewal
The U.S. Commerce Department,
through BIS, responded to the Russian
Federation’s (‘‘Russia’s’’) further
invasion of Ukraine by implementing a
sweeping series of stringent export
controls that severely restrict Russia’s
access to technologies and other items
that it needs to sustain its aggressive
military capabilities. These controls
primarily target Russia’s defense,
aerospace, and maritime sectors and are
intended to cut off Russia’s access to
vital technological inputs, atrophy key
sectors of its industrial base, and
undercut Russia’s strategic ambitions to
exert influence on the world stage.
Effective February 24, 2022, BIS
imposed expansive controls on aviationrelated (e.g., Commerce Control List
Categories 7 and 9) items to Russia,
including a license requirement for the
export, reexport or transfer (in-country)
to Russia of any aircraft or aircraft parts
Tail No.
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Serial No.
37552
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37552
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37552
Aircraft type
737–8GU
737–8GU
737–8GU
737–8GU
737–8GU
737–8GU
(B738)
(B738)
(B738)
(B738)
(B738)
(B738)
6 88
FR 59791 (Aug. 30, 2023).
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).
8 87 FR 13048 (Mar. 8, 2022).
ddrumheller on DSK120RN23PROD with NOTICES1
7 87
VerDate Sep<11>2014
specified in Export Control
Classification Number (‘‘ECCN’’) 9A991
(section 746.8(a)(1) of the EAR).7 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).8 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 for a period
of one year is based upon the facts
underlying the issuance of the initial
TDO and the renewal order
subsequently issued in this matter on
October 3, 2022, as well as other
evidence developed during this
investigation. These facts and evidence
demonstrate that UTair has continued,
and continues, to act in blatant
disregard for U.S. export controls and
the terms of previously issued TDOs.
Specifically, the initial TDO, issued on
April 7, 2022, was based on evidence
that UTair engaged in conduct
prohibited by the Regulations by
operating multiple aircraft subject to the
EAR and classified under ECCN
9A991.b on flights into Russia after
March 2, 2022 from destinations
including, but not limited to, Jeddah,
Saudi Arabia, Yerevan, Armenia, and
Tashkent, Uzbekistan, without the
required BIS authorization.9 Further
evidence submitted by BIS indicated
that UTair was continuing to operate
18:09 Sep 27, 2023
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Departure/arrival cities
................
................
................
................
................
................
Dates
Dushanbe, TJ/Moscow, RU .........................................
Khujand, TJ/Moscow, RU ............................................
Tashkent, UZ/Ufa, RU .................................................
Istanbul, TR/Grozny, RU .............................................
Istanbul, TR/Grozny, RU .............................................
Samarkand, UZ/Moscow, RU ......................................
9 Publicly available flight tracking information
shows that on March 5, 2022, serial number (SN)
36387 flew from Jeddah, Saudi Arabia to Grozny,
Russia, and on March 30, 2022, SN 28907 flew from
Yerevan, Armenia to Tyumen, Russia. In addition,
on March 31, 2022, SN 30437 flew from Tashkent,
Uzbekistan to Moscow, Russia.
10 Engaging in conduct prohibited by a denial
order violates the Regulations. 15 CFR 764.2(a) and
(k).
11 Publicly available flight tracking information
shows that on September 19, 2022, SN 30437 flew
from Tashkent, Uzbekistan to Moscow, Russia, and
PO 00000
aircraft subject to the EAR domestically
on flights within Russia, potentially in
violation of section 736.2(b)(10) of the
Regulations.
As discussed in the October 3, 2022
and March 29, 2023 renewal orders,
evidence presented by BIS indicated
that, after the initial order issued, UTair
continued to operate aircraft subject to
the EAR and classified under ECCN
9A991.b on flights both into and out of
Russia, in violation of the Regulations
and the TDO itself.10 Specifically, the
October 3, 2022 renewal order detailed
UTair’s continued operation of aircraft
subject to the EAR, including, but not
limited to, on flights into and out of
Russia from/to Yerevan, Armenia, Baku,
Azerbaijan, and Tashkent, Uzbekistan.11
Similarly, the March 29, 2023 renewal
order detailed UTair’s continued
operation of aircraft subject to the EAR,
including, but not limited to, on flights
into and out of Russia from/to Yerevan,
Armenia, Baku, Azerbaijan, Dushanbe,
Tajikistan, and Dubai, United Arab
Emirates.12
Since that time, UTair has continued
to engage in conduct prohibited by the
applicable TDO and Regulations. In its
September 5, 2023 request for renewal
of the TDO, BIS submitted evidence that
UTair is operating aircraft subject to the
EAR and classified under ECCN
9A991.b, both on flights into and within
Russia, in violation of the March 29,
2023 TDO and/or the Regulations.
Specifically, BIS’s evidence and related
investigation demonstrates that UTair
has continued to operate aircraft subject
to the EAR, including, but not limited
to, on flights into and out of Russia
from/to Yerevan, Armenia, Baku,
Azerbaijan, Dushanbe, Tajikistan,
Istanbul, Turkey, Tashkent, Uzbekistan,
and Dubai, United Arab Emirates.
Information about those flights includes,
but is not limited to, the following:
Frm 00008
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Sfmt 4703
August 28, 2023.
August 29, 2023.
August 31, 2023.
September 2, 2023.
September 4, 2023.
September 5, 2023.
SN 30435 flew from Yerevan, Armenia to Moscow,
Russia. In addition, on September 21, 2022, SN
28912 flew from Baku, Azerbaijan to Moscow,
Russia.
12 Publicly available flight tracking information
shows that SN 37752 flew from Yerevan, Armenia
to Moscow, Russia on March 23, 2023 and from
Dubai, United Arab Emirates to Grozny, Russia on
March 28, 2023. In addition, on March 29, 2023, SN
30437 flew from Dushanbe, Tajikistan to Moscow
Russia and on March 7, 2023, SN 28912 flew from
Baku, Azerbaijan to Ufa, Russia.
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Tail No.
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RA–73087
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RA–73087
RA–73085
RA–73085
RA–73085
RA–73085
RA–73085
RA–73085
RA–73086
RA–73086
RA–73086
RA–73086
RA–73086
RA–73086
RA–73086
Federal Register / Vol. 88, No. 187 / Thursday, September 28, 2023 / Notices
Serial No.
37552
29936
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32779
32779
32779
32779
32779
32779
32780
32780
32780
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Aircraft type
Departure/arrival cities
737–8GU (B738) ................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
737–8AS (B738) .................
Istanbul, TR/Grozny, RU .............................................
Dushanbe, TJ/Moscow, RU .........................................
Baku, AZ/Moscow, RU ................................................
Samarkand, UZ/Moscow, RU ......................................
Yerevan, AM/St. Petersburg, RU ................................
Baku, AZ/St. Petersburg, RU ......................................
Antalya, TR/Surgut, RU ...............................................
Yerevan, AM/Moscow, RU ..........................................
Baku, AZ/Moscow, RU ................................................
Baku, AZ/Moscow, RU ................................................
Dubai, AE/Tyumen, RU ...............................................
Baku, AZ/Moscow, RU ................................................
Bukhara, UZ/Moscow, RU ...........................................
Baku, AZ/Moscow, RU ................................................
Samarkand, UZ/Moscow, RU ......................................
Istanbul, TR/Grozny, RU .............................................
Baku, AZ/Moscow, RU ................................................
Samarkand, UZ/Moscow, RU ......................................
Dushanbe, TJ/Moscow, RU .........................................
Yerevan, AM/St. Petersburg, RU ................................
Baku, AZ/Moscow, 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 UTair has acted in
violation of the Regulations and the
TDO; that such violations have been
significant and deliberate; and that
given the foregoing and the nature of the
matters under investigation, there is a
likelihood of imminent violations.
Moreover, I find that renewal for an
extended period is appropriate because
UTair has engaged in a pattern of
repeated, ongoing and/or continuous
apparent violations of the EAR.
Therefore, renewal of the TDO for one
year is necessary in the public interest
to prevent imminent violation of the
Regulations and to give notice to
companies and individuals in the
United States and abroad that they
should avoid dealing with UTair, in
connection with export and reexport
transactions involving items subject to
the Regulations and in connection with
any other activity subject to the
Regulations.
ddrumheller on DSK120RN23PROD with NOTICES1
IV. Order
It is therefore ordered:
First, UTair Aviation JSC, KhantyMansiysk Airport, Tyumen Region,
Russia 628012, when acting for or on
their behalf, any successors or assigns,
agents, or employees may not, directly
or indirectly, participate in any way in
any transaction involving any
commodity, software or technology
(hereinafter collectively referred to as
‘‘item’’) exported or to be exported from
the United States that is subject to the
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18:09 Sep 27, 2023
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EAR, or in any other activity subject to
the EAR including, but not limited to:
A. Applying for, obtaining, or using
any license (except directly related to
safety of flight), license exception, or
export control document;
B. Carrying on negotiations
concerning, or ordering, buying,
receiving, using, selling, delivering,
storing, disposing of, forwarding,
transporting, financing, or otherwise
servicing in any way, any transaction
involving any item exported or to be
exported from the United States that is
subject to the EAR except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations, or engaging in any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations; or
C. Benefitting in any way from any
transaction involving any item exported
or to be exported from the United States
that is subject to the EAR, or from any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations.
Second, that no person may, directly
or indirectly, do any of the following:
A. Export, reexport, or transfer (incountry) to or on behalf of UTair any
item subject to the EAR except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations;
B. Take any action that facilitates the
acquisition or attempted acquisition by
UTair of the ownership, possession, or
control of any item subject to the EAR
that has been or will be exported from
the United States, including financing
or other support activities related to a
PO 00000
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Dates
September 19, 2023.
August 28, 2023.
September 1, 2023.
September 2, 2023.
September 5, 2023.
September 7, 2023.
September 11, 2023.
September 15, 2023.
August 28, 2023.
August 30, 2023.
September 1, 2023.
September 6, 2023.
September 12, 2023.
September 15, 2023.
August 26, 2023.
August 29, 2023.
September 3, 2023.
September 6, 2023.
September 8, 2023.
September 12, 2023.
September 16, 2023.
transaction whereby UTair acquires or
attempts to acquire such ownership,
possession or control except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations;
C. Take any action to acquire from or
to facilitate the acquisition or attempted
acquisition from UTair of any item
subject to the EAR that has been
exported from the United States except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations;
D. Obtain from UTair in the United
States any item subject to the EAR with
knowledge or reason to know that the
item will be, or is intended to be,
exported from the United States except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations; or
E. Engage in any transaction to service
any item subject to the EAR that has
been or will be exported from the
United States and which is owned,
possessed or controlled by UTair, or
service any item, of whatever origin,
that is owned, possessed or controlled
by UTair if such service involves the use
of any item subject to the EAR that has
been or will be exported from the
United States except directly related to
safety of flight and authorized by BIS
pursuant to section 764.3(a)(2) of the
Regulations. For purposes of this
paragraph, servicing means installation,
maintenance, repair, modification, or
testing.
Third, that, after notice and
opportunity for comment as provided in
section 766.23 of the EAR, any other
person, firm, corporation, or business
organization related to UTair by
ownership, control, position of
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responsibility, affiliation, or other
connection in the conduct of trade or
business may also be made subject to
the provisions of this Order.
In accordance with the provisions of
sections 766.24(e) of the EAR, UTair
may, at any time, appeal this Order by
filing a full written statement in support
of the appeal with the Office of the
Administrative Law Judge, U.S. Coast
Guard ALJ Docketing Center, 40 South
Gay Street, Baltimore, Maryland 21202–
4022.
In accordance with the provisions of
section 766.24(d) of the EAR, BIS may
seek renewal of this Order by filing a
written request not later than 20 days
before the expiration date. A renewal
request may be opposed by UTair as
provided in section 766.24(d), by filing
a written submission with the Assistant
Secretary of Commerce for Export
Enforcement, which must be received
not later than seven days before the
expiration date of the Order.
A copy of this Order shall be provided
to UTair, and shall be published in the
Federal Register.
This Order is effective immediately
and shall remain in effect for one year.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2023–21171 Filed 9–27–23; 8:45 am]
BILLING CODE 3510–DT–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Temporary Denial of
Export Privileges; Azur Air, Sharypovo
Airport, 404/1 Kozhevnicheskiy Land,
Moscow, Russia
ddrumheller on DSK120RN23PROD with NOTICES1
Pursuant to section 766.24 of the
Export Administration Regulations, 15
CFR parts 730–774 (‘‘EAR’’ or ‘‘the
Regulations’’),1 I hereby grant the
1 On August 13, 2018, the President signed into
law the John S. McCain National Defense
Authorization Act for Fiscal Year 2019, which
includes the Export Control Reform Act of 2018, 50
U.S.C. 4801–4852 (‘‘ECRA’’). While section 1766 of
ECRA repeals the provisions of the Export
Administration Act, 50 U.S.C. App. 2401 et seq.
(‘‘EAA’’), (except for three sections which are
inapplicable here), section 1768 of ECRA provides,
in pertinent part, that all orders, rules, regulations,
and other forms of administrative action that were
made or issued under the EAA, including as
continued in effect pursuant to the International
Emergency Economic Powers Act, 50 U.S.C. 1701
et seq. (‘‘IEEPA’’), and were in effect as of ECRA’s
date of enactment (August 13, 2018), shall continue
in effect according to their terms until modified,
superseded, set aside, or revoked through action
undertaken pursuant to the authority provided
under ECRA. Moreover, section 1761(a)(5) of ECRA
authorizes the issuance of temporary denial orders.
50 U.S.C. 4820(a)(5).
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18:09 Sep 27, 2023
Jkt 259001
request of the Office of Export
Enforcement (‘‘OEE’’) to renew the
temporary denial order (‘‘TDO’’) issued
in this matter on March 29, 2023. I find
that renewal of this order is necessary
in the public interest to prevent an
imminent violation of the Regulations
and that renewal for an extended period
is appropriate because Azur Air
(‘‘Azur’’) has engaged in a pattern of
repeated, ongoing and/or continuous
apparent violations of the EAR.
I. Procedural History
On April 7, 2022, I signed an order
denying Azur’s export privileges for a
period of 180 days on the grounds that
issuance of the order was necessary in
the public interest to prevent an
imminent violation of the Regulations.
The order was issued ex parte pursuant
to section 766.24(a) of the Regulations
and was effective upon issuance.2 This
temporary denial order was
subsequently renewed in accordance
with section 766.24(d) of the
Regulations.3 The renewal order issued
on October 3, 2022 and was effective
upon issuance.4 A second renewal order
issued on March 29, 2023 and was also
effective upon issuance.5
On September 5, 2023, BIS, through
OEE, submitted a written request for
renewal of the TDO that issued on
March 29, 2023. The written request
was made more than 20 days before the
TDO’s scheduled expiration and, given
the temporary suspension of
international mail service to Russia,
OEE has attempted to deliver a copy of
the renewal request to Azur by
alternative means 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
2 The TDO was published in the Federal Register
on April 12, 2022 (87 FR 21614).
3 At the time of the renewal, section 766.24(d)
provided that BIS may seek renewal of a temporary
denial order for additional 180-day renewal
periods, if it believes that renewal is necessary in
the public interest to prevent an imminent
violation. Renewal requests are to be made in
writing no later than 20 days before the scheduled
expiration date of a temporary denial order.
4 The October 3, 2022 renewal order was
published in the Federal Register on October 7,
2022 (87 FR 60983).
5 The March 29, 2023 renewal order was
published in the Federal Register on April 4, 2023
(88 FR 19908).
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
66805
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.
If BIS believes that renewal of a denial
order is necessary in the public interest
to prevent an imminent violation, it may
file a written request for renewal, with
any modifications if appropriate. 15
CFR 766.24(d)(1). The written request,
which must be filed no later than 20
days prior to the TDO’s expiration,
should set forth the basis for BIS’s belief
that renewal is necessary, including any
additional or changed circumstances. Id.
‘‘In cases demonstrating a pattern of
repeated, ongoing and/or continuous
apparent violations, BIS may request the
renewal of a temporary denial order for
an additional period not exceeding one
year.’’ 6 Id.
B. The TDO and BIS’s Request for
Renewal
The U.S. Commerce Department,
through BIS, responded to the Russian
Federation’s (‘‘Russia’s’’) further
invasion of Ukraine by implementing a
sweeping series of stringent export
controls that severely restrict Russia’s
access to technologies and other items
that it needs to sustain its aggressive
military capabilities. These controls
primarily target Russia’s defense,
aerospace, and maritime sectors and are
intended to cut off Russia’s access to
vital technological inputs, atrophy key
sectors of its industrial base, and
undercut Russia’s strategic ambitions to
exert influence on the world stage.
Effective February 24, 2022, BIS
imposed expansive controls on aviationrelated (e.g., Commerce Control List
Categories 7 and 9) items to Russia,
including a license requirement for the
export, reexport or transfer (in-country)
to Russia of any aircraft or aircraft parts
specified in Export Control
6 88
E:\FR\FM\28SEN1.SGM
FR 59791 (Aug. 30, 2023).
28SEN1
]]>Agencies
[Federal Register Volume 88, Number 187 (Thursday, September 28, 2023)]
[Notices]
[Pages 66802-66805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21171]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Temporary Denial of Export Privileges; UTair
Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region, Russia 628012
Pursuant to section 766.24 of the Export Administration
Regulations, 15 CFR parts 730-774 (``EAR'' or ``the Regulations''),\1\
I hereby grant the request of the Office of Export Enforcement
(``OEE'') to renew the temporary denial order (``TDO'') issued in this
matter on October 3, 2022. I find that renewal of this order is
necessary in the public interest to prevent an imminent violation of
the Regulations and that renewal for an extended period is appropriate
because UTair Aviation JSC (``UTair'') has engaged in a pattern of
repeated, ongoing and/or continuous apparent violations of the EAR.
---------------------------------------------------------------------------
\1\ On August 13, 2018, the President signed into law the John
S. McCain National Defense Authorization Act for Fiscal Year 2019,
which includes the Export Control Reform Act of 2018, 50 U.S.C.
4801-4852 (``ECRA''). While section 1766 of ECRA repeals the
provisions of the Export Administration Act, 50 U.S.C. App. 2401 et
seq. (``EAA''), (except for three sections which are inapplicable
here), section 1768 of ECRA provides, in pertinent part, that all
orders, rules, regulations, and other forms of administrative action
that were made or issued under the EAA, including as continued in
effect pursuant to the International Emergency Economic Powers Act,
50 U.S.C. 1701 et seq. (``IEEPA''), and were in effect as of ECRA's
date of enactment (August 13, 2018), shall continue in effect
according to their terms until modified, superseded, set aside, or
revoked through action undertaken pursuant to the authority provided
under ECRA. Moreover, section 1761(a)(5) of ECRA authorizes the
issuance of temporary denial orders. 50 U.S.C. 4820(a)(5).
---------------------------------------------------------------------------
I. Procedural History
On April 7, 2022, I signed an order denying UTair's export
privileges for a period of 180 days on the ground that issuance of the
order was necessary in the public interest to prevent an imminent
violation of the Regulations. The order was issued ex parte pursuant to
section 766.24(a) of the Regulations and was effective upon
issuance.\2\ This temporary denial order was subsequently renewed in
accordance with section 766.24(d) of the Regulations.\3\ The renewal
order issued on October 3, 2022 and was effective upon issuance.\4\ A
second renewal order issued on March 29, 2023 and was also effective
upon issuance.\5\
---------------------------------------------------------------------------
\2\ The TDO was published in the Federal Register on April 12,
2022 (87 FR 21616).
\3\ At the time of the renewal, section 766.24(d) provided that
BIS may seek renewal of a temporary denial order for additional 180-
day renewal periods, if it believes that renewal is necessary in the
public interest to prevent an imminent violation. Renewal requests
are to be made in writing no later than 20 days before the scheduled
expiration date of a temporary denial order.
\4\ The October 3, 2022 renewal order was published in the
Federal Register on October 7, 2022 (87 FR 60987).
\5\ The March 29, 2023 renewal order was published in the
Federal Register on April 4, 2023 (88 FR 19911).
---------------------------------------------------------------------------
On September 5, 2023, BIS, through OEE, submitted a written request
for renewal of the TDO that issued on March 29, 2023. The written
request was made more than 20 days before the TDO's scheduled
expiration and, given the temporary suspension of international mail
service to Russia, OEE has attempted to deliver a copy of the renewal
request to UTair by alternative means 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 CFR766.24(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
[[Page 66803]]
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.
If BIS believes that renewal of a denial order is necessary in the
public interest to prevent an imminent violation, it may file a written
request for renewal, with any modifications if appropriate. 15 CFR
766.24(d)(1). The written request, which must be filed no later than 20
days prior to the TDO's expiration, should set forth the basis for
BIS's belief that renewal is necessary, including any additional or
changed circumstances. Id. ``In cases demonstrating a pattern of
repeated, ongoing and/or continuous apparent violations, BIS may
request the renewal of a temporary denial order for an additional
period not exceeding one year.'' \6\ Id.
---------------------------------------------------------------------------
\6\ 88 FR 59791 (Aug. 30, 2023).
---------------------------------------------------------------------------
B. The TDO and BIS's Request for Renewal
The U.S. Commerce Department, through BIS, responded to the Russian
Federation's (``Russia's'') further invasion of Ukraine by implementing
a sweeping series of stringent export controls that severely restrict
Russia's access to technologies and other items that it needs to
sustain its aggressive military capabilities. These controls primarily
target Russia's defense, aerospace, and maritime sectors and are
intended to cut off Russia's access to vital technological inputs,
atrophy key sectors of its industrial base, and undercut Russia's
strategic ambitions to exert influence on the world stage. Effective
February 24, 2022, BIS imposed expansive controls on aviation-related
(e.g., Commerce Control List Categories 7 and 9) items to Russia,
including a license requirement for the export, reexport or transfer
(in-country) to Russia of any aircraft or aircraft parts specified in
Export Control Classification Number (``ECCN'') 9A991 (section
746.8(a)(1) of the EAR).\7\ 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).\8\ 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.
---------------------------------------------------------------------------
\7\ 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).
\8\ 87 FR 13048 (Mar. 8, 2022).
---------------------------------------------------------------------------
OEE's request for renewal for a period of one year is based upon
the facts underlying the issuance of the initial TDO and the renewal
order subsequently issued in this matter on October 3, 2022, as well as
other evidence developed during this investigation. These facts and
evidence demonstrate that UTair has continued, and continues, to act in
blatant disregard for U.S. export controls and the terms of previously
issued TDOs. Specifically, the initial TDO, issued on April 7, 2022,
was based on evidence that UTair engaged in conduct prohibited by the
Regulations by operating multiple aircraft subject to the EAR and
classified under ECCN 9A991.b on flights into Russia after March 2,
2022 from destinations including, but not limited to, Jeddah, Saudi
Arabia, Yerevan, Armenia, and Tashkent, Uzbekistan, without the
required BIS authorization.\9\ Further evidence submitted by BIS
indicated that UTair was continuing to operate aircraft subject to the
EAR domestically on flights within Russia, potentially in violation of
section 736.2(b)(10) of the Regulations.
---------------------------------------------------------------------------
\9\ Publicly available flight tracking information shows that on
March 5, 2022, serial number (SN) 36387 flew from Jeddah, Saudi
Arabia to Grozny, Russia, and on March 30, 2022, SN 28907 flew from
Yerevan, Armenia to Tyumen, Russia. In addition, on March 31, 2022,
SN 30437 flew from Tashkent, Uzbekistan to Moscow, Russia.
---------------------------------------------------------------------------
As discussed in the October 3, 2022 and March 29, 2023 renewal
orders, evidence presented by BIS indicated that, after the initial
order issued, UTair continued to operate aircraft subject to the EAR
and classified under ECCN 9A991.b on flights both into and out of
Russia, in violation of the Regulations and the TDO itself.\10\
Specifically, the October 3, 2022 renewal order detailed UTair's
continued operation of aircraft subject to the EAR, including, but not
limited to, on flights into and out of Russia from/to Yerevan, Armenia,
Baku, Azerbaijan, and Tashkent, Uzbekistan.\11\ Similarly, the March
29, 2023 renewal order detailed UTair's continued operation of aircraft
subject to the EAR, including, but not limited to, on flights into and
out of Russia from/to Yerevan, Armenia, Baku, Azerbaijan, Dushanbe,
Tajikistan, and Dubai, United Arab Emirates.\12\
---------------------------------------------------------------------------
\10\ Engaging in conduct prohibited by a denial order violates
the Regulations. 15 CFR 764.2(a) and (k).
\11\ Publicly available flight tracking information shows that
on September 19, 2022, SN 30437 flew from Tashkent, Uzbekistan to
Moscow, Russia, and SN 30435 flew from Yerevan, Armenia to Moscow,
Russia. In addition, on September 21, 2022, SN 28912 flew from Baku,
Azerbaijan to Moscow, Russia.
\12\ Publicly available flight tracking information shows that
SN 37752 flew from Yerevan, Armenia to Moscow, Russia on March 23,
2023 and from Dubai, United Arab Emirates to Grozny, Russia on March
28, 2023. In addition, on March 29, 2023, SN 30437 flew from
Dushanbe, Tajikistan to Moscow Russia and on March 7, 2023, SN 28912
flew from Baku, Azerbaijan to Ufa, Russia.
---------------------------------------------------------------------------
Since that time, UTair has continued to engage in conduct
prohibited by the applicable TDO and Regulations. In its September 5,
2023 request for renewal of the TDO, BIS submitted evidence that UTair
is operating aircraft subject to the EAR and classified under ECCN
9A991.b, both on flights into and within Russia, in violation of the
March 29, 2023 TDO and/or the Regulations. Specifically, BIS's evidence
and related investigation demonstrates that UTair has continued to
operate aircraft subject to the EAR, including, but not limited to, on
flights into and out of Russia from/to Yerevan, Armenia, Baku,
Azerbaijan, Dushanbe, Tajikistan, Istanbul, Turkey, Tashkent,
Uzbekistan, and Dubai, United Arab Emirates. Information about those
flights includes, but is not limited to, the following:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tail No. Serial No. Aircraft type Departure/arrival cities Dates
--------------------------------------------------------------------------------------------------------------------------------------------------------
RA-73089.............. 37552 737-8GU (B738)............................ Dushanbe, TJ/Moscow, RU. August 28, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Khujand, TJ/Moscow, RU.. August 29, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Tashkent, UZ/Ufa, RU.... August 31, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Istanbul, TR/Grozny, RU. September 2, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Istanbul, TR/Grozny, RU. September 4, 2023.
RA-73089.............. 37552 737-8GU (B738)............................ Samarkand, UZ/Moscow, RU September 5, 2023.
[[Page 66804]]
RA-73089.............. 37552 737-8GU (B738)............................ Istanbul, TR/Grozny, RU. September 19, 2023.
RA-73087.............. 29936 737-8AS (B738)............................ Dushanbe, TJ/Moscow, RU. August 28, 2023.
RA-73087.............. 29936 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... September 1, 2023.
RA-73087.............. 29936 737-8AS (B738)............................ Samarkand, UZ/Moscow, RU September 2, 2023.
RA-73087.............. 29936 737-8AS (B738)............................ Yerevan, AM/St. September 5, 2023.
Petersburg, RU.
RA-73087.............. 29936 737-8AS (B738)............................ Baku, AZ/St. Petersburg, September 7, 2023.
RU.
RA-73087.............. 29936 737-8AS (B738)............................ Antalya, TR/Surgut, RU.. September 11, 2023.
RA-73087.............. 29936 737-8AS (B738)............................ Yerevan, AM/Moscow, RU.. September 15, 2023.
RA-73085.............. 32779 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... August 28, 2023.
RA-73085.............. 32779 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... August 30, 2023.
RA-73085.............. 32779 737-8AS (B738)............................ Dubai, AE/Tyumen, RU.... September 1, 2023.
RA-73085.............. 32779 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... September 6, 2023.
RA-73085.............. 32779 737-8AS (B738)............................ Bukhara, UZ/Moscow, RU.. September 12, 2023.
RA-73085.............. 32779 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... September 15, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Samarkand, UZ/Moscow, RU August 26, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Istanbul, TR/Grozny, RU. August 29, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... September 3, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Samarkand, UZ/Moscow, RU September 6, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Dushanbe, TJ/Moscow, RU. September 8, 2023.
RA-73086.............. 32780 737-8AS (B738)............................ Yerevan, AM/St. September 12, 2023.
Petersburg, RU.
RA-73086.............. 32780 737-8AS (B738)............................ Baku, AZ/Moscow, RU..... September 16, 2023.
--------------------------------------------------------------------------------------------------------------------------------------------------------
III. Findings
Under the applicable standard set forth in section 766.24 of the
Regulations and my review of the entire record, I find that the
evidence presented by BIS convincingly demonstrates that UTair has
acted in violation of the Regulations and the TDO; that such violations
have been significant and deliberate; and that given the foregoing and
the nature of the matters under investigation, there is a likelihood of
imminent violations. Moreover, I find that renewal for an extended
period is appropriate because UTair has engaged in a pattern of
repeated, ongoing and/or continuous apparent violations of the EAR.
Therefore, renewal of the TDO for one year is necessary in the public
interest to prevent imminent violation of the Regulations and to give
notice to companies and individuals in the United States and abroad
that they should avoid dealing with UTair, in connection with export
and reexport transactions involving items subject to the Regulations
and in connection with any other activity subject to the Regulations.
IV. Order
It is therefore ordered:
First, UTair Aviation JSC, Khanty-Mansiysk Airport, Tyumen Region,
Russia 628012, when acting for or on their behalf, any successors or
assigns, agents, or employees may not, directly or indirectly,
participate in any way in any transaction involving any commodity,
software or technology (hereinafter collectively referred to as
``item'') exported or to be exported from the United States that is
subject to the EAR, or in any other activity subject to the EAR
including, but not limited to:
A. Applying for, obtaining, or using any license (except directly
related to safety of flight), license exception, or export control
document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the EAR except directly related to
safety of flight and authorized by BIS pursuant to section 764.3(a)(2)
of the Regulations, or engaging in any other activity subject to the
EAR except directly related to safety of flight and authorized by BIS
pursuant to section 764.3(a)(2) of the Regulations; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is subject to
the EAR, or from any other activity subject to the EAR except directly
related to safety of flight and authorized by BIS pursuant to section
764.3(a)(2) of the Regulations.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export, reexport, or transfer (in-country) to or on behalf of
UTair any item subject to the EAR except directly related to safety of
flight and authorized by BIS pursuant to section 764.3(a)(2) of the
Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by UTair of the ownership, possession, or control of any
item subject to the EAR that has been or will be exported from the
United States, including financing or other support activities related
to a transaction whereby UTair acquires or attempts to acquire such
ownership, possession or control except directly related to safety of
flight and authorized by BIS pursuant to section 764.3(a)(2) of the
Regulations;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from UTair of any item subject to the EAR that
has been exported from the United States except directly related to
safety of flight and authorized by BIS pursuant to section 764.3(a)(2)
of the Regulations;
D. Obtain from UTair in the United States any item subject to the
EAR with knowledge or reason to know that the item will be, or is
intended to be, exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to section
764.3(a)(2) of the Regulations; or
E. Engage in any transaction to service any item subject to the EAR
that has been or will be exported from the United States and which is
owned, possessed or controlled by UTair, or service any item, of
whatever origin, that is owned, possessed or controlled by UTair if
such service involves the use of any item subject to the EAR that has
been or will be exported from the United States except directly related
to safety of flight and authorized by BIS pursuant to section
764.3(a)(2) of the Regulations. For purposes of this paragraph,
servicing means installation, maintenance, repair, modification, or
testing.
Third, that, after notice and opportunity for comment as provided
in section 766.23 of the EAR, any other person, firm, corporation, or
business organization related to UTair by ownership, control, position
of
[[Page 66805]]
responsibility, affiliation, or other connection in the conduct of
trade or business may also be made subject to the provisions of this
Order.
In accordance with the provisions of sections 766.24(e) of the EAR,
UTair may, at any time, appeal this Order by filing a full written
statement in support of the appeal with the Office of the
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40
South Gay Street, Baltimore, Maryland 21202-4022.
In accordance with the provisions of section 766.24(d) of the EAR,
BIS may seek renewal of this Order by filing a written request not
later than 20 days before the expiration date. A renewal request may be
opposed by UTair as provided in section 766.24(d), by filing a written
submission with the Assistant Secretary of Commerce for Export
Enforcement, which must be received not later than seven days before
the expiration date of the Order.
A copy of this Order shall be provided to UTair, and shall be
published in the Federal Register.
This Order is effective immediately and shall remain in effect for
one year.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2023-21171 Filed 9-27-23; 8:45 am]
BILLING CODE 3510-DT-P
