Background

The Bureau of Industry and Security announced recently its first enforcement actions in response to Russia’s invasion of Ukraine. Specifically, BIS has issued orders denying the export privileges of three Russian airlines for 180 days due to ongoing violations of the comprehensive export controls the BIS has imposed on Russia. These orders suspend the right of these airlines to participate in transactions subject to the Export Administration Regulations, including exports and reexports from the U.S.

Assistant Secretary of Commerce for Export Enforcement Matthew Axelrod said that under these new restrictions the targeted airlines “will over time largely be unable to continue flying either internationally or domestically as they are now cut off from the international support and the U.S. parts and related services they need to maintain and support their fleets.” Axelrod added that the enforcement measures are “a reminder to parties in Russia as well as throughout the rest of the world that U.S. legal authorities are substantial, far-reaching, and can have a meaningful impact on access to global commerce by parties found to be in violation of U.S. law.”

BIS notes that it has taken a number of regulatory actions against Russia’s civilian aerospace sector, including (1) a license requirement for the export, reexport, or transfer (in-country) to Russia of any aircraft or aircraft parts on the Commerce Control List, (2) a license requirement for exports of any U.S.-origin aircraft or foreign aircraft that includes more than 25 percent controlled U.S.-origin content if the aircraft is Russian-owned or operated and exported to Russia, and (3) publication of a list of private and commercial aircraft likely operating in violation of the EAR and notification that the operation of, or service to, any aircraft on this list may lead to BIS enforcement actions such as loss of export privileges, fines, and substantial jail time. This list is regularly updated and currently totals 153 aircraft, including 146 owned or operated by Russia and seven owned or operated by Belarus.

For more information on restrictions on exports to Russia and Belarus, please contact Kristine Pirnia at (202) 730-4964 or via email.

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