BIS charges Lukoil with unlicenced re-export of Boeing aircraft
In a 31 August charging letter, the US Department of Business Industry and Security (‘BIS’) has told Russian oil giant PJSC Lukoil that it has reason to believe the company has committed a violation of the Export Administration Regulations (‘EAR’) in so much as that:
‘1. On or about March 12, 2022, Lukoil engaged in conduct prohibited by and contrary to the Regulations, by reexporting controlled items, specifically a U.S.-origin Boeing 737-7EM aircraft classified under Export Control Classification Number (“ECCN”) 9A991, to Russia without the required BIS license. Pursuant to Section 746.8 of the Regulations, a BIS reexport license was required before the aircraft could be reexported to Russia.
‘2. In so doing, Lukoil committed one violation of Section 764.2(a) of the Regulations, by engaging in any transaction or taking any other action prohibited by or contrary to, or refraining from engaging in any transaction or taking any other action required by ECRA,2 the EAR, or any order, license or authorization issued thereunder.’
In an explainer, the BIS said that as part of the US government response to Russia’s invasion of Ukraine, ‘On February 24, 2022, BIS imposed a license requirement for the export or reexport to Russia of aircraft subject to the EAR. On March 2, 2022, BIS also removed the availability of the Aircraft, Vessels, and Spacecraft (AVS) license exception for all aircraft registered in, owned, or controlled by, or under charter or lease by Russia or a national of Russia, meaning they must have BIS authorization for legal operation.
‘Flight records reflect that after the license requirement was put in place, the Lukoil-owned aircraft was reexported to Russia on one occasion without the requisite BIS authorization. Specifically, on or about March 12, 2022, the aircraft flew from Dubai, United Arab Emirates to Moscow, Russia with a Lukoil official as a passenger. No reexport license was sought or obtained from BIS prior to the reexport of the aircraft to Russia on or about March 12, 2022. As set forth above, therefore, on or about March 12, 2022, Lukoil engaged in conduct prohibited by and contrary to the EAR, by reexporting a controlled item, specifically a U.S.-origin 737-7EM aircraft, to Russia without the required BIS license.’
