On August 2, 2022, the US Commerce Department’s Bureau of Industry and Security (“BIS”) updated its list of aircraft that have flown into Russia or Belarus in apparent violation of the Export Administration Regulations (“EAR”) (the “List”) by adding 25 foreign-produced aircraft. These aircraft were identified by BIS as subject to the EAR because they incorporate controlled US-origin content exceeding applicable de minimis amounts (i.e., greater than 25% by value) and having apparently violated the EAR’s stringent export controls on Russia. The additions to the List include foreign-produced aircraft in the fleets of I-Fly, Nordwind, Red Wings, S7 Airlines, Ural Airlines, and Yamal Airlines. There are now a total of 183 aircraft identified on the List for apparent violations of US export controls.
The List is published by BIS as a notice to the general public that the provision by a US or non-US person of services or items (including refueling, maintenance, repair, or the provision of spare parts or services) relating to the listed aircraft is subject to General Prohibition 10 (§ 736.2(b)(10) of the EAR) and requires authorization from BIS. General Prohibition 10 prohibits the sale, transfer, export, reexport, financing, ordering, buying, removing, concealing, storing, using, loaning, disposing of, transporting, forwarding, or otherwise servicing, in whole or in part, any item subject to the EAR and exported or reexported with knowledge that a violation of the EAR has or is about to occur.
BIS has indicated that the List is not exhaustive, and will continue to be updated. Our prior blog posts regarding the publication of the initial List on March 18, 2022 and subsequent updates can be found here, here, and here. The current version of the List can be found here.
OFAC Issues New and Amended Russia General Licenses, FAQs; New Designations
On August 2, 2022, the US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) imposed a new round of sanctions targeting elites and companies operating in economic sectors that generate substantial revenue for the Russian regime. OFAC’s designations were made in tandem with the US State Department, which imposed additional sanctions on entities and individuals, as well as visa restrictions. The OFAC press release and State Department fact sheet are available here and here.
In addition to the new SDN designations, OFAC issued one new and four amended General Licenses (“GLs”):
- GL 40B, GL 47A, and GL 48A were amended to clarify that they apply to JSC State Transportation Leasing Company.
- GL 43A was amended to authorize US financial institutions to unblock certain covered debt or equity of PJSC Severstal or Nord Gold PLC that was blocked between June 2 and June 28 subject to the filing of a report to OFAC.
- GL 49 authorizes transactions ordinarily incident and necessary to the wind down of any transaction involving MMK Metalurji Sanayi Ticaret Ve Liman Isletmeciligi Anonim Sirketi or any entity it owns, directly or indirectly, a 50 percent or greater interest, through 12:01 a.m. EST on January 31, 2023.
OFAC also published new FAQs 1073, 1074, and 1075 clarifying that Sheremetyevo International Airport, EuroChem Group AG, and PhosAgro PJSC are not blocked as a result of the designations of, respectively, Alexander Anatolevich Ponomarenko, Andrey Igorevich Melnichenko, or Andrey Grigoryevich Guryev and Andrey Andreevich Guryev.