On July 31, a U.S. district judge in Washington D.C. imposed a criminal fine of $8.5 million on IBM East Europe/Asia Ltd. for exporting computers to Arzamas-16, a Russian nuclear weapons laboratory, in violation of the International Emergency Economic Powers Act and the Export Administration Regulations. Additionally, the Bureau of Export Administration imposed a civil penalty of $171,000, the maximum permitted under the charges. BXA also denied IBM East Europe/Asia Ltd.'s export privileges for two years, but suspended that denial. The company agreed that it will not engage in transactions with nuclear or military end-users/end-uses without prior authorization by BXA during the two years, and also would not use license exception CTP during that period. The company would be eligible to apply for a license for any transaction that ordinarily would be eligible for license exception CTP. BXA Export Enforcement officials noted that the company cooperated fully with the investigation and acted responsibly in resolving this case.
Please consult the Justice Department's press release for further information
on this case by clicking the thumbnail copy of each page below
In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.