BIS Fines Virginia Company for Illegal Exports to Russian Military End-User

The Bureau of Industry and Security fined a Fredericksburg, Virginia, military equipment manufacturer $200,000 for illegally exporting military-related items to military end-users in Russia, BIS said in a June 28 order. The company, Patriot 3, exported maritime jet boots with underwater propulsion systems despite having “knowledge” that the shipment violated the Export Administration Regulations, the order said. BIS said the boots, which were worth about $330,000 and exported in 2014, were controlled in connection with exports to military end-users or for military end-uses in Russia. Patriot 3 sent the boots to the Russian government’s Federal Guard Service, BIS said.

As part of a settlement agreement, the company agreed to pay BIS in four installments of $50,000. If Patriot 3 doesn’t comply with the agreement, BIS may revoke its export privileges. Patriot 3 didn’t respond to a request for comment.