BIS to Seize PJSC Lukoil Plane Over Violation of Export Controls
The Commerce Department's Bureau of Industry and Security charged PJSC Lukoil, a Russian multinational energy company, with violations of the Export Control Reform Act for the export of a U.S.-manufactured aircraft from Dubai to Russia, according to an Aug. 31 notice. BIS says that Lukoil "effectively owned, controlled, chartered or leased, through a series of shell companies, at least one U.S.-origin aircraft" subject to the Export Administration Regulations and that its export in March violated license requirements imposed in February.
On Feb. 24, BIS imposed a license requirement for the export of aircraft to Russia and removed the availability of the Aircraft, Vessels, and Spacecraft license exception for all aircraft registered in, owned, or controlled by, or under charter or lease by Russia or a national of Russia, on March 2, meaning that subject aircraft must have BIS authorization for legal operation. The charging letter said that flight records show that after the license requirement was put in place, the Lukoil-owned aircraft was exported to Russia on one occasion without the requisite BIS authorization.
The charging letter issued to Lukoil alleges that on or about March 12, Lukoil engaged in conduct prohibited by and contrary to the Regulations, by reexporting controlled items, specifically a U.S.-origin Boeing 737-7EM aircraft to Russia without the required BIS license. BIS obtained a warrant from the U.S. District Court for the Southern District of Texas for the seizure of the plane, valued at $45 million. The seizure is being coordinated through DOJ's Task Force KleptoCapture -- the interagency group tasked with enforcing the U.S.'s and its allies' sanctions regimes on Russia following its invasion of Ukraine.
“Today’s actions to enforce the powerful export restrictions placed on Russia are our latest coordinated measures that let Vladimir Putin and his allies know they are isolated and we are watching,” Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod said. “The Department of Commerce has been consistent and aggressive in our enforcement of the export controls placed on Russia after its unprovoked invasion of the Ukraine. Today’s enforcement action is the latest example showing the consequences companies and individuals will face if they violate U.S. export controls,” said John Sonderman, director of the Office of Export Enforcement.