BIS Charges Russian Oligarch With Export Violations
The Bureau of Industry and Security June 6 charged Russian oligarch Roman Abramovich with violating U.S. export controls by exporting U.S.-origin aircraft to Russia without the required licenses (see 2202240069). BIS said Abramovich’s planes flew to and from Russia in March, days after the agency announced new export controls on Russia-related aircraft.
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The charging letter -- the first such letter released under new administrative enforcement policies that allow BIS to publish charges before a case is resolved (see 2206030012) -- said Abramovich’s U.S.-origin Gulfstream G650ER aircraft flew from Turkey to Russia March 12 and March 15. His second plane, a U.S.-origin Boeing 787-8, flew from the United Arab Emirates to Russia March 4, BIS said.
Abramovich, whose planes were previously listed on BIS’ list of restricted Russian aircraft (see 2205200008 and 2203180044), didn’t apply for a license from BIS despite both planes being controlled under Export Control Classification Number 9A991, the agency said. BIS also said Abramovich was a “primary passenger on part, if not all,” of the flights to Russia.
Working with BIS, the Justice Department issued a seizure warrant for both of Abramovich’s planes. Both aircraft “flouted export controls that prohibited those planes to pass into Russian territory,” a DOJ official said during a June 6 call with reporters. The planes haven’t yet been taken into U.S. custody but are now “publicly known as wanted property,” the official said.
The official also said it purposefully publicized the seizure notice because it hopes industry and other governments can help it eventually confiscate the planes. “While we pursue these assets -- as we will -- today's filings provide banks, insurance companies, aviation service providers and others with the details sufficient to understand” that “any company that may assist in further moving these playing while they're under active pursuit runs the risk of being viewed as obstructionist,” the official said.
A second administration official said the Commerce Department hopes BIS’s public charging letter “helps with deterrence” and lets industry know “when there is a violation of our rules, we take action.” BIS can issue a maximum penalty of about $328,000 per violation, or twice the value of each airplane, the official said. The Boeing plane is worth about $350 million, and the Gulfstream about $50 million.
“The maximum penalty would be pretty high,” the official said. “What the actual result of an administrative proceeding would be, I wouldn't want to predict,” the official added. “I think we'll see as this plays out."