BIS Imposes New Export Controls on Russian Refinery Sector, Adds to Entity List

The new restrictions, which took effect with the notices' March 3 release, include additional and more stringent license requirements for exports of certain items subject to the Export Administration Regulations, BIS said, including for a range of oil refinery equipment, extraction equipment and other items that may be used in Russia’s energy sector. The new Entity List additions -- which are located in Russia, Belize, Estonia, Kazakhstan, Latvia, Malta, Singapore, Slovakia, Spain and the U.K. -- either support or are involved in Russia’s military and defense sectors or defense research efforts.

The export controls on energy equipment will particularly hurt Russia, “one of the world’s leading producers of oil products,” the Commerce Department said, by limiting “its ability to raise revenue from the sale of refined products.” Both the restrictions and Entity List additions will “further erode Russia’s ability to finance its military and punish those who seek to support them,” Thea Kendler, BIS assistant secretary for export administration, said.

The export controls on energy-related equipment include a new “general prohibition” for exports to Russia of goods classified under certain Harmonized Tariff Schedule-6 codes and Schedule B numbers, which are now listed in new supplement No. 4 to part 746 of the EAR. BIS will impose a license review policy of denial for most applications, but some exports needed for health and safety reasons will be reviewed case by case.

As part of the rule, BIS expanded a general prohibition to require exporters to submit license applications even if they don’t have “knowledge” Russia will use the item for certain deepwater, Arctic offshore or shale projects. Previously, exporters were required to submit an application only if they had knowledge Russia was going to use their exported item for those energy efforts, or in situations where they were “unable to determine whether the item would be used in such projects.”

BIS said the new supplement No. 4 to part 746, which is a table listing the HTS Codes and Schedule B Numbers now subject to the new controls, will help exporters “if they have difficulty in identifying a product based on either the HTS codes or Schedule B numbers alone.” The agency expects the new requirements to result in 20 additional license applications submitted to BIS annually.

All exports, reexports and transfers that now require a license as a result of the increased export restrictions that were aboard a carrier to a port as of March 3 may proceed to their destinations under the previous eligibility.

For the new Entity List additions, BIS will impose a license requirement for all items subject to the EAR, and each of the 91 entities will be subject to a license review policy of denial. But BIS said it will also impose a case-by-case review policy for applications involving U.S. government-supported space programs for five entities: Elara, JSC Element, Radioavtomatika, Russian Space Systems and Scientific Research Institute NII Submikron. No license exceptions will be available.

All exports, reexports and transfers that now require a license as a result of the Entity List changes that were aboard a carrier to a port as of March 3 may proceed to their destinations under the previous eligibility.

The 91 new entities, added under 96 entries because some entities were added under multiple destinations, are:

Belize

• Ecotherm-Cryo Ltd.

Estonia

• ADIMIR OU
• Eastline Technologies OU
• Valery Kosmachov

Kazakhstan

• Serniya Engineering

Latvia

• Ecotherm-Cryo Ltd.

Malta

• Djeco Group LP
• Malberg Ltd.

Russia

• Amur Shipbuilding Factory PJSC
• AO Center of Shipbuilding and Ship Repairing JSC
• AO Kronshtadt
• Avant Space LLC
• Baikal Electronics
• Center for Technological Competencies in Radiophtonics
• Central Research and Development Institute Tsiklon
• Crocus Nano Electronics
• Dalzavod Ship-Repair Center
• Elara
• Electronic Computing and Information Systems
• ELPROM
• Engineering Center Ltd.
• Forss Technology Ltd.
• Integral SPB
• JSC Element
• JSC Pella-Mash
• JSC Shipyard Vympel
• Kranark LLC
• Lev Anatolyevich Yershov (Ershov)
• LLC Center
• MCST Lebedev
• Miass Machine-Building Factory
• Microelectronic Research and Development Center Novosibirsk
• MPI VOLNA
• N.A. Dollezhal Order of Lenin Research and Design Institute of Power Engineering
• Nerpa Shipyard
• NM-Tekh
• Novorossiysk Shipyard JSC
• NPO Electronic Systems
• NPP Istok
• NTC Metrotek
• OAO GosNIIkhimanalit
• OAO Svetlovskoye Predpriyatiye Era
• OJSC TSRY
• OOO Elkomtekh (Elkomtex)
• OOO Planar
• OOO Sertal
• Photon Pro LLC
• PJSC Zvezda
• Production Association Strela
• Radioavtomatika
• Research Center Module
• Robin Trade Ltd.
• R.Ye. Alekseyev Central Design Bureau for Hydrofoil Ships
• Rubin Sever Design Bureau
• Russian Space Systems
• Rybinsk Shipyard Engineering
• Scientific Research Institute of Applied Chemistry
• Scientific-Research Institute of Electronics
• Scientific Research Institute of Hypersonic Systems
• Scientific Research Institute NII Submikron
• Sergey IONOV
• Serniya Engineering
• Severnaya Verf Shipbuilding Factory
• Ship Maintenance Center Zvezdochka
• State Governmental Scientific Testing Area of Aircraft Systems (GkNIPAS)
• State Machine Building Design Bureau Raduga Bereznya
• State Scientific Center AO GNTs RF – FEI A.I. Leypunskiy Physico-Energy Institute
• State Scientific Research Institute of Machine Building Bakhirev (GosNIImash)
• Tomsk Microwave and Photonic Integrated Circuits and Modules Collective Design Center
• UAB Pella-Fjord
• United Shipbuilding Corp. JSC “35th Shipyard”
• United Shipbuilding Corp. JSC “Astrakhan Shipyard”
• United Shipbuilding Corp. JSC “Aysberg Central Design Bureau”
• United Shipbuilding Corp. JSC “Baltic Shipbuilding Factory”
• United Shipbuilding Corp. JSC “Krasnoye Sormovo Plant OJSC”
• United Shipbuilding Corp. JSC “SC “Zvyozdochka”
• United Shipbuilding Corp. “Pribaltic Shipbuilding Factory Yantar”
• United Shipbuilding Corp. “Scientific Research Design Technological Bureau Onega”
• United Shipbuilding Corp. “Sredne-Nevsky Shipyard”
• Ural Scientific Research Institute for Composite Materials
• Urals Project Design Bureau Detal
• Vega Pilot Plant
• Vertikal LLC
• Vladislav Vladimirovich Fedorenko
• VTK Ltd
• Yaroslavl Shipbuilding Factory
• ZAO Elmiks-VS
• ZAO Sparta
• ZAO Svyaz Inzhiniring

Singapore

• Alexsong PTE LTD

Slovakia

• Incoff Aerospace S.R.O.

Spain

• Invention Bridge SL
• Majory LLP

U.K.

• Djeco Group LP
• Majory LLP
• Photon Pro LLC.