Commerce Department Announces Further Expansion of Export Restrictions on Russia

Details
FOR IMMEDIATE RELEASE
BUREAU OF INDUSTRY AND SECURITY
Wednesday, July 16, 2014
Office of Congressional and Public Affairs
www.bis.doc.gov
202-482-2721


Commerce Department Announces Further Expansion of Export Restrictions on Russia 

WASHINGTON – As part of a series of sanctions announced today by the United States, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) is adding 11 parties to its Entity List in response to Russia's continued action in Ukraine. Russian support to the separatists has fueled increased fighting and casualties in eastern Ukraine. Russia continues to provide the separatists with heavy weapons, equipment, and other financing, and continues to allow militants to enter Ukraine freely. In addition, Russia has returned many of its troops to border areas, and also has been massing additional equipment near the border for potential transfer into Ukraine.

In response to Russia’s continued policy of destabilization in eastern Ukraine and ongoing occupation of Crimea and Sevastopol, the following 11 parties are being added to the Entity List based on a determination they are involved, or pose a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States. Designation on the Entity List imposes a license requirement for the export, re-export or foreign transfer of items subject to the Export Administration Regulations to the designated Entities, with a presumption of denial.

Today's additions to the Entity List are: 1) Donetsk People’s Republic; 2) Feodosia Enterprise; 3) JSC Concern Radio-Electronic Technologies; 4) JSC Concern Sozvezdie; 5) JSCC Almaz-Antey; 6) Kalashnikov Concern; 7) KBP Instrument Design Bureau; 8) Luhansk People’s Republic; 9) MIC NOP Mashinostroyenia; 10) Research and Production Corporation “UralVagonZavod”; and 11) State Research and Production Enterprise “Bazalt.”

Today’s action is being taken in conjunction with an announcement by the Department of the Treasury that it also will impose sanctions on a number of parties.

BIS controls exports and reexports of commodities, technology, and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability, foreign policy and anti-terrorism. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations. For more information, please visit www.bis.doc.gov.

Bureau of Industry and Security Fines California Company for Illegal Export of Technology to Russian Engineer

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FOR IMMEDIATE RELEASE
BUREAU OF INDUSTRY AND SECURITY
Monday, February 24 2014
Office of Congressional and Public Affairs
www.bis.doc.gov
202-482-2721

Bureau of Industry and Security Fines California Company for Illegal Export of Technology to Russian Engineer

WASHINGTON – The U.S. Department of Commerce’s Bureau of Industry and Security (BIS), Office of Export Enforcement (OEE), today announced that it has reached a $115,000 civil settlement with Intevac, Inc., of Santa Clara, CA. BIS fined the company for five violations of the Export Administration Regulations (EAR), including the unauthorized release of export controlled manufacturing technology to a Russian national working at its U.S. facility. The settlement involves "deemed exports," releases of controlled technology made to a foreign national located in the U.S.

"Deemed export compliance is a top priority for the Bureau of Industry and Security," said David W. Mills, Assistant Secretary of Commerce for Export Enforcement. "Today’s settlement highlights the need for companies to be vigilant to prevent the unauthorized release of U.S. technology and data."

Intevac voluntarily disclosed the unauthorized release of drawings and blueprints for parts and identification numbers for parts to the Russian national in question, who was employed as an engineer at the company’s Santa Clara headquarters. Under the EAR, such information constitutes technology that is controlled for national security reasons. Intevac applied for a deemed export license after discovering the initial releases but failed to prevent additional releases of technology while the license application was pending. BIS charged Intevac with knowledge of these additional releases and considered the company’s conduct to be an aggravating factor in the penalty assessment. The company was also charged with one violation related to the unauthorized transmission of technology to its subsidiary in China.

Organizations that most commonly obtain deemed export licenses include universities, high technology research and development institutions and bio-chemical firms. In certain cases, they need to obtain deemed export licenses from BIS before making such releases.

BIS controls exports and reexports of dual-use commodities, technology, and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability, foreign policy and anti-terrorism. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations. For more information, please visit www.bis.doc.gov.

 

Commerce Dept Announces Expansion of Export Restrictions on Russia

Details
FOR IMMEDIATE RELEASE
BUREAU OF INDUSTRY AND SECURITY
Monday, April 28 2014
Office of Congressional and Public Affairs
www.bis.doc.gov
202-482-2721


Commerce Department Announces Expansion of Export Restrictions on Russia

WASHINGTON – As part of a series of sanctions announced today by the United States, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced that it is expanding its export restrictions on items subject to the Export Administration Regulations (EAR) in response to Russia's continued actions in southern and eastern Ukraine. The Department of Commerce has also added 13 companies to the Entity List.

Effective immediately, BIS will deny pending applications for licenses to export or re-export any high technology item subject to the EAR to Russia or occupied Crimea that contribute to Russia's military capabilities. In addition, the Department is taking actions to revoke any existing export licenses which meet these conditions. All other pending applications and existing licenses will receive a case-by-case evaluation to determine their contribution to Russia's military capabilities.

In addition, 13 companies have been designated on the Entity List based on a determination they are involved, or pose a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States. Designation on the Entity List imposes a license requirement for the export, re-export or other foreign transfer of items subject to the EAR to the designated companies, with a presumption of denial.

Today's additions to the Entity List are: Stroytransgaz Holding, located in Cyprus; Volga Group, located in Luxembourg and Russia; and Aquanika, Avia Group LLC, Avia Group Nord LLC, CJSC Zest, Sakhatrans LLC, Stroygazmontazh, Stroytransgaz Group, Stroytransgaz LLC, Stroytransgaz-M LLC, Stroytransgaz OJSC, and Transoil, all located in Russia.

The United States will continue to adjust its export licensing policies toward Russia as warranted by Russia's actions in Ukraine. We urge Russia to honor the commitments it made in Geneva on April 17 to deescalate the situation in Ukraine. 

 

 

Commerce Department Announces Move Against Russian Expropriation of Ukrainian Company

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FOR IMMEDIATE RELEASE
BUREAU OF INDUSTRY AND SECURITY
Friday, April 11 2014
Office of Congressional and Public Affairs
www.bis.doc.gov
202-482-2721


Commerce Department Announces Move Against Russian Expropriation of Ukrainian Company

WASHINGTON – The U. S. Department of Commerce's Bureau of Industry and Security announced today that it has added a company located in the occupied Crimea region of Ukraine to the Entity List in response to Russian expropriation of the company. The Entity List designation imposes a license requirement for the export, reexport or in-country transfer of items subject to the Export Administration Regulations to the company, with the presumption of denial. The company, Chernomorneftegaz, a.k.a. Chornomornaftogaz and NJSC Chornomornaftogaz, is a regional oil and gas company in Crimea and a subsidiary of the Ukrainian company Naftogaz, but its assets are now being overseen by Russian government interests following their seizure by the Crimean parliament.

"The addition of Chernomorneftegaz to the Entity List sends a strong message of the United States government's condemnation of Russia's incursion into Ukraine and expropriation of Ukrainian assets," said Under Secretary of Commerce Eric L. Hirschhorn in announcing the move.

The Department of Commerce's addition of Chernomorneftegaz to the Entity List is being done in conjunction with a parallel action by the Department of the Treasury. Today's move is consistent with the President's finding in Executive Order 13660 that the actions and policies of persons who have asserted governmental authority in the Crimean region without the authorization of the Government of Ukraine threaten the national security and foreign policy of the United States. In Executive Order 13661 and Executive Order 13662, the President further found that the actions and policies of the Russian government with respect to Ukraine – including the deployment of its military forces to, and purported annexation of, Crimea – undermine Ukraine's democratic processes and institutions, threaten Ukraine's peace, security, stability, sovereignty, and territorial integrity, and contribute to the misappropriation of its assets. In a related action today by the Department of the Treasury, Chernomorneftegaz is being designated pursuant to E.O. 13660 because it is complicit in the misappropriation of state assets of Ukraine or of an economically significant entity in Ukraine.

Chernomorneftegaz is being added to the Department of Commerce's Entity List under two entries, consisting of one entry in Crimea (Occupied) with an additional entry added to provide a cross reference from Ukraine. The United States continues to condemn in the strongest terms Russia's occupation of Crimea and will not recognize Russia's illegal annexation of Crimea.

 

U.S. Commerce Department Adds Nine Persons Associated with Missile Proliferator to Entity List

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FOR IMMEDIATE RELEASE
BUREAU OF INDUSTRY AND SECURITY
Tuesday, April 29 2014
Office of Congressional and Public Affairs
www.bis.doc.gov
202-482-2721


 


U.S. Commerce Department Adds Nine Persons Associated with Missile Proliferator to Entity List

WASHINGTON – As part of a series of measures announced by the Obama Administration today, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced the addition of eight Chinese companies and one Chinese individual to its Entity List for their roles in supplying Iran’s ballistic missile program through the Chinese proliferator Li Fangwei (a.k.a. Karl Lee).

"These additions to the Entity List send a message that we will not tolerate proliferation networks and will use every means available to shut them down," said Under Secretary of Commerce Eric L. Hirschhorn in announcing the action.

The Entity List designations mean that the U.S. government has determined the listed persons to be acting contrary to the national security or foreign policy interests of the United States. The designation imposes a license requirement for the export, reexport or in-country transfer of items subject to the Export Administration Regulations (EAR) to listed persons. Here, the license review policy for all but one of the listed persons will be a presumption of denial.

Today’s Commerce Department action is being taken in coordination with other U.S. agencies taking action against Li Fangwei. The U.S. Department of Justice unsealed an indictment against Li Fangwei on charges including conspiracy to commit money laundering, bank fraud, and wire fraud and the U.S. Department of State offered a reward for information leading to the arrest or conviction of Li Fangwei. In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control added eight of Li Fangwei’s front companies to its List of Specially Designated Nationals and Blocked Persons.

The nine persons added to the Entity List today include the following: Beijing Aeronautical Manufacturing Technology Research Institute, Chengdu Latest Electronics Technology Company, Dalian Ligong Safety Equipment Company Limited, Fushun Jinly Petrochemical Carbon Company Limited, Liaoyang Carbon Company, Limited, Shanghai Hentong Optics Technology Limited, Weihai New Era Chemical Industrial Company Limited, Xinghe Xingyong Carbon Company Limited, and Zhu Kuibao.