Addition of Entities and Revision of Entry on the Entity List
| Published date | 19 July 2021 |
| Citation | 86 FR 37901 |
| Record Number | 2021-15362 |
| Section | Rules and Regulations |
| Court | Industry And Security Bureau |
Federal Register, Volume 86 Issue 135 (Monday, July 19, 2021)
[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Rules and Regulations]
[Pages 37901-37904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15362]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 210707-0145]
RIN 0694-AI53
Addition of Entities and Revision of Entry on the Entity List
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) by adding six entities to
the Entity List. These six entities, all of which are being added under
the destination of Russia, have been determined by the U.S. Government
to be acting contrary to the national security or foreign policy
interests of the United States and are being added consistent with
Executive Order 14024, Blocking Property With Respect To Specified
Harmful Foreign Activities of the Government of the Russian Federation,
issued on April 15, 2021. This rule also corrects one existing entry on
the Entity List under the destination of Russia.
DATES: This rule is effective July 19, 2021.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary, Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Fax: (202) 482-3911, Email: [email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List (supplement no. 4 to part 744 of the EAR)
identifies entities for which there is reasonable cause to believe,
based on specific and articulable facts, that the entities have been
involved, are involved, or pose a significant risk of being or becoming
involved in activities contrary to the national security or foreign
policy interests of the United States. The EAR (15 CFR parts 730-774)
impose additional license requirements on, and limit the availability
of most license exceptions for, exports, reexports, and transfers (in-
country) to listed entities. The license review policy for each listed
entity is identified in the ``License Review Policy'' column on the
Entity List, and the impact on the availability of license exceptions
is described in the relevant Federal Register document adding entities
to the Entity List. BIS places entities on the Entity List pursuant to
part 744 (Control Policy: End-User and End-Use Based) and part 746
(Embargoes and Other Special Controls) of the EAR.
The End-User Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, where
appropriate, the Treasury, makes all decisions regarding additions to,
removals from, or other modifications to the Entity List and the MEU
List. The ERC makes all decisions to add an entry to the Entity List
and MEU List by majority vote and all decisions to remove or modify an
entry by unanimous vote. The Departments represented on the ERC
approved these changes to the Entity List.
Entity List Decisions
A. Entity Additions Consistent With Executive Order 14024
In this final rule, six entities are added to the Entity List on
the basis of activities that are described in Executive Order (E.O.)
14024 (86 FR 20249, April 19, 2021), Blocking Property With Respect To
Specified Harmful Foreign Activities of the Government of the Russian
Federation, issued on April 15, 2021. In E.O. 14024, the President
found that specified harmful foreign activities of the Russian
government constitute an unusual and extraordinary threat to the
national security, foreign policy, and economy of the United States. In
issuing E.O. 14024, the President declared a national emergency to deal
with this threat.
E.O. 14024 elevates the U.S. government's capacity to deploy
strategic and economically impactful sanctions to deter and respond to
Russia's destabilizing behavior and to counter Russia's harmful foreign
activities that threaten the national security and foreign policy of
the United States, including: Undermining the conduct of free and fair
elections and democratic institutions in the United States and its
allies and partners; engaging in and facilitating malicious cyber
activities against the United States and its allies and partners that
threaten the free flow of information; fostering and using
transnational corruption to influence foreign governments; pursuing
extraterritorial activities targeting dissidents or journalists;
undermining security in countries and regions important to the United
States' national security; and violating well-established principles of
international law, including respect for the territorial integrity of
states. To address these threats, E.O. 14024 authorizes sanctions on a
wide range of persons, including, among others, those operating in the
technology and defense and related materiel sectors of the Russian
economy and in any additional sectors of the Russian economy as may be
determined by the Secretary of the Treasury, in consultation with the
Secretary of State.
The Department of the Treasury's Office of Foreign Assets Control
(OFAC) has designated the following six entities as being within the
scope of E.O. 14024: Aktsionernoe Obshchestvo AST; Aktsionernoe
Obshchestvo Pasit; Aktsionernoe Obshchestvo Pozitiv Teknolodzhiz;
Federal State Autonomous Institution Military Innovative Technopolis
Era; Federal
[[Page 37902]]
State Autonomous Scientific Establishment Scientific Research Institute
Specialized Security Computing Devices and Automation; and Obshchestvo
S Ogranichennoi Otvetstvennostyu NEOBIT. OFAC's first use of E.O. 14024
targeted companies operating in the technology sector of the Russian
economy that support Russian intelligence services.
In conjunction with OFAC's designation, BIS is taking concurrent
action to ensure the efficacy of existing sanctions on Russia that
target aggressive and harmful activities by the Russian government. BIS
is adding the six entities designated by OFAC--Aktsionernoe Obshchestvo
AST; Aktsionernoe Obshchestvo Pasit; Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz; Federal State Autonomous Institution Military Innovative
Technopolis Era; Federal State Autonomous Scientific Establishment
Scientific Research Institute Specialized Security Computing Devices
and Automation; and Obshchestvo S Ogranichennoi Otvetstvennostyu
NEOBIT--to the Entity List, and is imposing a license requirement for
exports, reexports, or transfers (in-country) of all items subject to
the EAR to these blocked persons. This concurrent action by BIS will
complement the actions already taken by OFAC by ensuring that U.S.
sanctions on these entities will apply to all items subject to the EAR
regardless of whether a U.S. person is involved in the transaction or
whether the transaction involves the U.S. financial system. BIS imposes
a license review policy of a presumption of denial for these six
entities. In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) to the persons being added to the
Entity List in this rule. This license requirement implements an
appropriate measure within the authority of the EAR to carry out the
provisions of E.O. 14024.
Russia
Aktsionernoe Obshchestvo AST;
Aktsionernoe Obshchestvo Pasit;
Aktsionernoe Obshchestvo Pozitiv Teknolodzhiz;
Federal State Autonomous Institution Military Innovative
Technopolis Era;
Federal State Autonomous Scientific Establishment
Scientific Research Institute Specialized Security Computing Devices
and Automation; and
Obshchestvo S Ogranichennoi Otvetstvennostyu NEOBIT.
B. Correction to the Entity List
This final rule implements a correction to one existing entry on
the Entity List under Russia. The correction is for the entity, Federal
Security Service (FSB). This entity was added to the EAR on January 4,
2017 (82 FR 724, January 4, 2017). The License Requirement for this
entity applies to all items subject to the EAR, apart from items that
are related to transactions that are authorized by OFAC pursuant to
their February 2, 2017, General License No. 1 (``Authorizing Certain
Transactions with the Federal Security Service''). Effective March 2,
2021, General License No. 1A, dated March 15, 2018, was replaced and
superseded in its entirety by General License No. 1B (``Authorizing
Certain Transactions with the Federal Security Service''). This final
rule corrects the existing entry's License Requirement column by
inserting General License 1B for reference to OFAC's General License
No. 1, and amends the effective date from February 2, 2017, to the
current effective date of March 2, 2021.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export, reexport, or transfer (in-country) without a license (NLR)
as a result of this regulatory action that were en route aboard a
carrier to a port of export, reexport, or transfer (in-country), on
July 19, 2021, pursuant to actual orders for export, reexport, or
transfer (in-country) to or within a foreign destination, may proceed
to that destination under the previous eligibility for a License
Exception or export, reexport, or transfer (in-country) without a
license (NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities
and serves as the authority under which BIS issues this rule.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This final rule has been designated to be not significant for purposes
of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license applications, and carries a burden estimate of
29.6 minutes for a manual or electronic submission. Total burden hours
associated with the PRA and OMB control number 0694-0088 are not
expected to increase as a result of this rule.
3. This rule does not contain policies with federalism implications
as that term is defined in E.O. 13132.
4. Pursuant to section 1762 of ECRA (see 50 U.S.C. 4821), this
action is exempt from the Administrative Procedure Act (5 U.S.C. 553)
requirements for notice of proposed rulemaking, opportunity for public
participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required and none
has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
[[Page 37903]]
PART 744--[AMENDED]
0
1. The authority citation for part 744 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of September 18, 2020, 85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November 13, 2020).
0
2. Supplement No. 4 to part 744 is amended in the table under RUSSIA:
0
a. By adding in alphabetical order entries for ``Aktsionernoe
Obshchestvo AST'', ``Aktsionernoe Obshchestvo Pasit'', and
``Aktsionernoe Obshchestvo Pozitiv Teknolodzhiz'';
0
b. By revising the entry for ``Federal Security Service (FSB)''; and
0
c. By adding in alphabetical order entries for ``Federal State
Autonomous Institution Military Innovative Technopolis Era'', ``Federal
State Autonomous Scientific Establishment Scientific Research Institute
Specialized Security Computing Devices and Automation'', and
``Obshchestvo S Ogranichennoi Otvetstvennostyu NEOBIT''.
The additions and revision read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
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License License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
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RUSSIA................. * * * * * *
Aktsionernoe Obshchestvo For all items Presumption of 86 FR [INSERT FR
AST, a.k.a., the following subject to the denial. PAGE NUMBER]
one alias: EAR. (See Sec. July 19, 2021.
--Advanced Systems 744.11 of the
Technology, AO. EAR).
d. 3k2 str. 4 etazh 5 kom.
55, shosse Kashirskoe,
Moscow 115230, Russia.
Aktsionernoe Obshchestvo For all items Presumption of 86 FR [INSERT FR
Pasit, a.k.a., the subject to the denial. PAGE NUMBER]
following one alias: EAR. (See Sec. July 19, 2021
--Pasit, AO. 744.11 of the
EAR).
Avenue Leninsky, Building
30, Premise IA, Moscow,
11934, Russia.
Aktsionernoe Obshchestvo For all items Presumption of 86 FR [INSERT FR
Pozitiv Teknolodzhiz, subject to the denial.. PAGE NUMBER]
a.k.a., the following two EAR. (See Sec. July 19, 2021.
aliases: 744.11 of the
EAR).
--JSC Positive Technologies;
and
--Pozitiv Teknolodzhiz, AO.
d. 23A pom. V kom, 30,
shosse Shchelkovskoe,
Moscow, 107241, Russia.
* * * * * *
Federal Security Service For all items Presumption of 82 FR 724, 1/4/
(FSB), a.k.a., the subject to the denial. 17.
following one alias: EAR (see Sec. 82 FR 18219, 4/18/
--Federalnaya Sluzhba 744.11 of the 17.
Bezopasnosti. EAR), apart from 86 FR [INSERT FR
Ulitsa Kuznetskiy Most, Dom items that are PAGE NUMBER]
22, Moscow 107031, Russia; related to July 19, 2021.
and Lubyanskaya Ploschad, transactions that
Dom 2, Moscow 107031, are authorized by
Russia. the Department of
the Treasury's
Office of Foreign
Assets Control
pursuant to
General License
No. 1B of March
2, 2021.
Federal State Autonomous For all items Presumption of 86 FR [INSERT FR
Institution Military subject to the denial. PAGE NUMBER]
Innovative Technopolis Era, EAR. (See Sec. July 19, 2021.
a.k.a., the following two 744.11 of the
aliases: EAR).
--ERA Military Innovation
Technopolis; and
--FGAU VIT ERA.
Pionerskiy Prospekt, 41
Anapa Krasnodar Krai
353456, Russia.
Federal State Autonomous For all items Presumption of 86 FR [INSERT FR
Scientific Establishment subject to the denial. PAGE NUMBER]
Scientific Research EAR. (See Sec. July 19, 2021.
Institute Specialized 744.11 of the
Security Computing Devices EAR).
and Automation, a.k.a., the
following one alias:
--FGANU NII
Specvuzavtomatika.
Rostov-On-Don, Russia.
* * * * * *
Obshchestvo S Ogranichennoi For all items Presumption of 86 FR [INSERT FR
Otvetstvennostyu NEOBIT, subject to the denial. PAGE NUMBER]
a.k.a., the following one EAR. (See Sec. July 19, 2021.
alias: 744.11 of the
--NEOBIT, OOO. EAR).
[[Page 37904]]
d. 21 litera G, ul.
Gzhatskaya, St. Petersburg,
195220, Russia.
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Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-15362 Filed 7-16-21; 8:45 am]
BILLING CODE 3510-33-P
