
[Federal Register Volume 79, Number 180 (Wednesday, September 17, 2014)]
[Rules and Regulations]
[Pages 55608-55615]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-22207]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 744 and 746

[Docket No. 1408114668-4758-01]
RIN 0694-AG28


Russian Sanctions: Addition of Persons to the Entity List and 
Restrictions on Certain Military End Uses and Military End Users

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations 
(EAR) to impose additional sanctions implementing U.S. policy toward 
Russia. Specifically, in this rule, the Bureau of Industry and Security 
(BIS) amends the EAR by adding ten entries to the Entity List. The 
persons who are added to the Entity List have been determined by the 
U.S. Government to be acting contrary to the national security or 
foreign policy interests of the United States. These persons will be 
listed on the Entity List under the destination of Russia. BIS is also 
amending the EAR to impose license requirements for items destined to 
Russia when those items are intended for a military end use or military 
end user.

DATES: Effective date: This rule is effective September 17, 2014.

FOR FURTHER INFORMATION CONTACT: For the Entity List-related changes 
contact the Chair, End-User Review Committee, Office of the Assistant 
Secretary, Export Administration, Bureau of Industry and Security, 
Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, 
Email: ERC@bis.doc.gov.
    For the changes for Restrictions on Certain Military End Uses and 
Military End Users, contact Eileen Albanese, Director, Office of 
National Security and Technology Transfer Controls, Bureau of Industry 
and Security, Department of Commerce, Phone: (202) 482-0092, Fax: (202) 
482-482-3355, Email: rpd2@bis.doc.gov. For emails, include ``Russia'' 
in the subject line.

SUPPLEMENTARY INFORMATION: 

Background

    This final rule amends the Export Administration Regulations (EAR) 
to impose additional sanctions implementing U.S. policy toward Russia. 
Specifically, in this rule the Bureau of Industry and Security (BIS) 
amends the EAR by adding ten persons to the Entity List. The persons 
who are added to the Entity List have been determined by the U.S. 
Government to be acting contrary to the national security or foreign 
policy interests of the United States. These persons will be listed on 
the Entity List under the destination of Russia. BIS is also amending 
the EAR to impose license requirements for items destined to Russia 
when those items are intended for a military end use or military end 
user.

Entity List

    The Entity List (Supplement No. 4 to Part 744) notifies the public 
about entities that have engaged in activities that could result in an 
increased risk of the diversion of exported, reexported or transferred 
(in-country) items to weapons of mass destruction (WMD) programs, 
activities sanctioned by the State Department and activities contrary 
to U.S. national security or foreign policy interests. Certain exports, 
reexports, and transfers (in-country) to entities identified on the 
Entity List require licenses from BIS and are usually subject to a 
policy of denial. The availability of license exceptions in such 
transactions is very limited. The license review policy for each entity 
is identified in the license review policy column on the Entity List 
and the availability of license exceptions is noted in the Federal 
Register notices adding persons to the Entity List. BIS places entities 
on the Entity List based on certain sections of part 744 (Control 
Policy: End-User and End-Use Based) of the EAR.
    The End-User Review Committee (ERC), composed of representatives of 
the Departments of Commerce (Chair), State, Defense, Energy and, where 
appropriate, the Treasury, makes all decisions regarding additions to, 
removals from, or other modifications to the Entity List. The ERC makes 
all decisions to add an entry to the Entity List by majority vote and 
all decisions to remove or modify an entry by unanimous vote. The 
Departments represented on the ERC approved these changes to the Entity 
List.

Addition to the Entity List in this rule

    This rule adds ten persons to the Entity List on the basis of Sec.  
744.11 (License requirements that apply to entities acting contrary to 
the national security or foreign policy interests of the United States) 
of the EAR. Under Sec.  744.11(b) (Criteria for revising the Entity 
List), persons for whom there is reasonable cause to believe, based on 
specific and articulable facts, have been involved, are involved, or 
pose a significant risk of being or becoming involved in, activities 
that are contrary to the national security or foreign policy interests 
of the United States and those acting on behalf of such persons may be 
added to the Entity List. The persons being added to the Entity List 
have been determined to be involved in activities that are contrary to 
the national security or foreign policy interests of the United States.

Entity Additions Consistent With Executive Order 13661

    Five entities are added based on activities that are described in 
Executive Order 13661 (79 FR 15533), Blocking Property of Additional 
Persons Contributing to the Situation in Ukraine, issued by the 
President on March 16, 2014. This Order expanded the scope of the 
national emergency declared in Executive Order 13660, finding that the 
actions and policies of the Government of the Russian Federation with 
respect to Ukraine--including the deployment of Russian Federation 
military forces in Crimea (Occupied)--undermine democratic processes 
and institutions in Ukraine; threaten its peace, security,

[[Page 55609]]

stability, sovereignty, and territorial integrity; and contribute to 
the misappropriation of its assets, and thereby constitute an unusual 
and extraordinary threat to the national security and foreign policy of 
the United States.
    Specifically, Executive Order 13661 includes a directive that all 
property and interests in property that are in the United States, that 
hereafter come within the United States, or that are or thereafter come 
within the possession or control of any United States person (including 
any foreign branch) of the following persons are blocked and may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in: Persons 
determined by the Secretary of the Treasury to be operating in the 
defense or related materiel sector in the Russian Federation. Under 
Section 8 of the Order, all agencies of the United States Government 
are directed to take all appropriate measures within their authority to 
carry out the provisions of the Order. The Department of the Treasury's 
Office of Foreign Assets Control, pursuant to Executive Order 13661 and 
on behalf of the Secretary of the Treasury, has designated the 
following five persons as operating in the defense or related materiel 
sector of the Russian Federation: Almaz-Antey Air Defense Concern Main 
System Design Bureau, JSC; Tikhomirov Scientific Research Institute of 
Instrument Design, JSC; Kalinin Machine Plant, JSC; Mytishchinski 
Mashinostroitelny Zavod, OAO; and Dolgoprudny Research Production 
Enterprise, OAO.
    In conjunction with those designations, the Department of Commerce 
adds the five persons to the Entity List under this rule and imposes a 
license requirement for exports, reexports, or transfers (in-country) 
for all items subject to the EAR to those persons. This license 
requirement implements an appropriate measure within the authority of 
BIS to carry out the provisions of Executive Order 13661. Almaz-Antey 
Air Defense Concern Main System Design Bureau, JSC is one of the 
world's largest defense industry complexes, specializing in development 
of anti-air, anti-missile and space defense systems. Tikhomirov 
Scientific Research Institute of Instrument Design, JSC specializes in 
the development of weaponry control systems for fighter planes and 
mobile medium range anti-aircraft surface to air missile (SAM) defense 
vehicles. Kalinin Machine Plant, JSC designs and manufactures machines 
for military and civil applications. Mytishchinski Mashinostroitelny 
Zavod, OAO manufactures and supplies ordnance and accessories, 
including naval, aircraft, anti-aircraft and field artillery products. 
Dolgoprudny Research Production Enterprise, OAO develops and 
manufactures high-technology defense products. Therefore, pursuant to 
Sec.  744.11 of the EAR, the conduct of these five persons raises 
sufficient concern that prior review of exports, reexports, or 
transfers (in-country) of items subject to the EAR involving these five 
persons, and the possible imposition of license conditions or license 
denials on shipments to these persons, will enhance BIS's ability to 
protect the foreign policy and national security interests of the 
United States. License applications for exports, reexports and 
transfers (in-country) to these persons will be reviewed with a 
presumption of denial.

Entity Additions Consistent With Executive Order 13662

    In addition, five entities are added based on activities that are 
described in Executive Order 13662 (79 FR 16169), Blocking Property of 
Additional Persons Contributing to the Situation in Ukraine, issued by 
the President on March 20, 2014. This Order expanded the scope of the 
national emergency declared in Executive Order 13660 of March 6, 2014 
and Executive Order 13661 of March 16, 2014. Specifically, EO 13662 
expanded the scope to include sectors of the Russian Federation economy 
as may be determined by the Secretary of the Treasury, in consultation 
with the Secretary of State, such as financial services, energy, metals 
and mining, engineering, and defense and related materiel.
    The Department of the Treasury's Office of Foreign Assets Control, 
pursuant to Executive Order 13662 and on behalf of the Secretary of the 
Treasury, has designated the following five persons as operating in the 
energy sector of the Russian Federation. Gazprom, OAO has major 
business lines in geological exploration, production, transportation, 
storage, processing and sales of gas, gas condensate and oil, sales of 
gas as a vehicle fuel as well as generation and marketing of heat and 
electric power. Gazpromneft is a Russian oil company engaged primarily 
in oil and gas exploration and production, the sale and distribution of 
crude oil, and the production and sale of petroleum products. Lukoil, 
OAO is a company in Russia's petroleum industry. Rosneft is a company 
in Russia's petroleum industry whose activities include hydrocarbon 
exploration and production, upstream offshore projects, hydrocarbon 
refining, and crude oil, gas and product marketing in Russia and 
abroad. Surgutneftegas is a Russian oil and gas company.
    Therefore, BIS adds the following five Russian energy entities to 
the Entity List to impose a license requirement for the export, 
reexport or transfers (in-country) of all items subject to the EAR to 
those companies when the exporter, reexporter or transferor knows that 
the item will be used directly or indirectly in exploration for, or 
production of, oil or gas in Russian deepwater (greater than 500 feet) 
or Arctic offshore locations or shale formations in Russia, or are 
unable to determine whether the item will be used in such projects. 
License applications for such transactions will be reviewed with a 
presumption of denial when for use directly or indirectly for 
exploration or production from deepwater (greater than 500 feet), 
Arctic offshore, or shale projects in Russia that have the potential to 
produce oil. This license requirement implements an appropriate measure 
within the authority of BIS to carry out the provisions of Executive 
Order 13662.
    The license requirements for all ten persons added to the Entity 
List apply to any transaction in which items are to be exported, 
reexported, or transferred (in-country) to any of the persons or in 
which such persons act as purchaser, intermediate consignee, ultimate 
consignee, or end-user. In addition, no license exceptions are 
available for exports, reexports, or transfers (in-country) to the 
persons being added to the Entity List in this rule.
    This final rule adds the following ten persons to the Entity List:

Russia

    1. Almaz-Antey Air Defense Concern Main System Design Bureau, JSC 
(a.k.a., A.A. Raspletin Main System Design Bureau; a.k.a. Almaz-Antey 
GSKB; a.k.a. Almaz-Antey GSKB Imeni Academician A.A. Raspletin; a.k.a. 
Almaz-Antey MSDB; a.k.a. Almaz-Antey PVO `Air Defense' Concern Lead 
Systems Design Bureau OAO `Open Joint-Stock Company' Imeni Academician 
A.A. Raspletin; a.k.a. Golovnoye Sistemnoye Konstruktorskoye Byuro Open 
Joint-Stock Company of Almaz-Antey PVO Concern Imeni Academician A.A. 
Raspletin; a.k.a. Joint Stock Company Almaz-Antey Air Defense Concern 
Main System Design Bureau, Named by Academician A.A. Raspletin; a.k.a. 
Joint Stock Company Almaz-Antey Air Defense Concern Main System Design 
Bureau; a.k.a. Almaz-Antey; a.k.a. JSC `Almaz-Antey' MSDB, f.k.a., 
Otkrytoe Aktsionernoe Obshchestvo Nauchno

[[Page 55610]]

Proizvodstvennoe Obedinenie Almaz Imeni Akademika A.A. Raspletina; 
a.k.a. GSKB)
    Address: 16-80, Leningradsky Prospect, Moscow 125190, Russia;
    2. Dolgoprudny Research Production Enterprise, OAO, (a.k.a. 
olgoprudnenskoye NPP OAO; a.k.a. Dolgoprudny; a.k.a. -Dolgoprudny 
Research Production Enterprise; a.k.a. Otkrytoe Aktsionernoe 
Obshchestvo Doigoprudnenskoe Nauchno Proizvodstvennoe Predpriyatie; 
a.k.a. OAO `Dolgoprudny Research Production Enterprise')
    Address: 1 Pl. Sobina, Dolgoprudny, Moskovskaya obl. 141700, 
Russia;
    Alt Address: Proshchad Sobina 1, Dolgoprudny 141700, Russia;
    * 3. Gazprom, OAO (a.k.a. Open Joint Stock Company Gazprom; a.k.a. 
OAO Gazprom; a.k.a. Gazprom)
    Address: 16 Nametkina St., Moscow, Russia GSP-7, 117997, Russia;
    Alt Address: 16 Nametkina ul., Moscow 117991, Russia;
    * 4. Gazprom Neft (a.k.a. Gazprom Neft OAO; a.k.a. JSC Gazprom 
Neft; a.k.a. Open Joint-Stock Company Gazprom Neft; f.k.a. Sibirskaya 
Neftyanaya Kompaniya OAO)
    Address: Let. A. Galernaya, 5, ul, St. Petersburg 190000, Russia;
    Alt Address: Ul. Pochtamtskaya, 3-5, St. Petersburg 190000, Russia;
    Alt Address: 3-5 Pochtamtskaya St., St. Petersburg 190000, Russia; 
and
    Alt Address: 125 A. Profsoyuznaya Street, Moscow 117647, Russia;
    5. Kalinin Machine Plant, JSC, a.k.a., Kalinin Machine-Building 
Plant Open Joint-Stock Company; a.k.a. Kalinin Machinery Plant-BRD; 
a.k.a. Mashinostroitel'NYI Zavod IM. M.I. Kalinina, G. Yekaterinburg 
OAO; a.k.a. Mzik OAO; a.k.a. Open-End Joint-Stock Company `Kalinin 
Machinery Plant. YEKATERINBURG'; a.k.a. Otkrytoe Aktsionernoe 
Obshchestvo Mashinostroitelny Zavod IM.M.I.Kalinina, G.Ekaterinburg)
    Address: 18 prospekt Kosmonavtov, Ekaterinburg 620017, 
Sverdlovskaya obl., Russia;
    * 6. Lukoil, OAO (a.k.a. Lukoil; a.k.a. Lukoil Oil Company; a.k.a. 
Neftyanaya Kompaniya Lukoil OOO; a.k.a. NK Lukoil OAO)
    Address: 11 Sretenski boulevard, Moscow 101000, Russia;
    7. Mytishchinski Mashinostroitelny Zavod, OAO, (a.k.a., JSC 
Mytishchinski Machine-Building Plant; a.k.a. Otkrytoe Aktsionernoe 
Obshchestvo `Mytishchinski Mashinostroitelny ZAVOD')
    Address: 4 ul. Kolontsova Mytishchi, Mytishchinski Raion, 
Moskovskayaobl 141009, Russia;
    Alt. Address: UL Koloncova, d.4, Mytishi, Moscow region 141009, 
Russia;
    * 8. Rosneft (a.k.a. Open Joint-Stock Company Rosneft Oil Company; 
a.k.a. OAO Rosneft Oil Company; a.k.a. Oil Company Rosneft; a.k.a. OJSC 
Rosneft Oil Company; a.k.a. Rosneft Oil Company)
    Address: 26/1, Sofiyskaya Embankment, 117997, Moscow, Russia;
    * 9. Surgutneftegas (a.k.a. Open Joint Stock Company 
Surgutneftegas; a.k.a. Otkrytoe Aktsionernoe Obshchestvo 
Surgutneftegaz; a.k.a. Surgutneftegas OAO; a.k.a. Surgutneftegas OJSC; 
a.k.a. Surgutneftegaz OAO)
    Address: ul. Grigoriya Kukuyevitskogo, 1, bld. 1, Khanty-Mansiysky 
Autonomous Okrug--Yugra, the city of Surgut, Tyumenskaya Oblast 628415, 
Russia;
    Alt Address: korp. 1 1 Grigoriya Kukuevitskogo ul., Surgut, 
Tyumenskaya oblast 628404, Russia;
    Alt Address: Street Kukuevitskogo 1, Surgut, Tyumen Region 628415, 
Russia;
    10. Tikhomirov Scientific Research Institute of Instrument Design, 
JSC (a.k.a., JSC NIIP, f.k.a., Otkrytoe Aktsionernoe Obshchestvo 
Nauchno Issledovatelski Institut Priborostroeniya Imeni V.V. 
Tikhomirova; a.k.a. Scientific Research Institue of Instrument Design; 
a.k.a. JSC V. Tikhomirov Scientific Research Institute of Instrument 
Design.)
    Address: 3 Ul. Gagarina, Zhukovski, Moskovskaya Obl 140180, Russia;
    Alt. Address: Gagarin Str, 3, Zhukovsky 140180, Russia.

Military End-Use Restriction

    It is the policy of the United States Government to facilitate U.S. 
exports for civilian end uses, while preventing exports that would 
enhance the military capability of certain destinations, thereby 
threatening the national security and foreign policy of the United 
States and its allies. In furtherance of this policy, BIS established a 
license requirement for certain items intended for ``military end 
uses'' in a final rule published June 19, 2007 (72 FR 33646). 
Specifically, that final rule established a control, based on knowledge 
of a ``military end use,'' on exports and reexports of certain items on 
the Commerce Control List (CCL) that otherwise would not require a 
license to a specified destination. The ``military end use'' control 
initially applied to certain items exported, reexported or transferred 
(in country) to the People's Republic of China.
``Military End Use'' and ``Military End User'' License Requirements for 
Certain Items Destined for Russia
    In this rule, BIS amends Sec.  744.21 of the EAR to apply 
``military end use'' and ``military end user'' license requirements to 
Russia. Specifically, BIS amends Sec.  744.21 by adding ``or Russia'' 
after ``People's Republic of China'' and ``PRC'', wherever those names 
appear, including in the heading of the section. Items subject to these 
license requirements are those listed in Supplement No. 2 to Part 744. 
This final rule also adds a paragraph (g) to define the term ``military 
end user'' for purposes of Sec.  744.21. The definition of ``military 
end user'' this rule adds to Sec.  744.21 is the same definition of 
``military end user'' that is defined in Sec.  744.17 of the EAR.

Foreign Policy Report

    The extension of the military end use controls to Russia in this 
rule is the imposition of a foreign policy control. Section 6(f) of the 
Export Administration Act requires that a report be delivered to 
Congress before imposing such controls. The report was delivered to 
Congress on September 12, 2014.

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act. BIS continues to carry out the provisions of the 
Export Administration Act, as appropriate and to the extent permitted 
by law, pursuant to Executive Order 13222 as amended by Executive Order 
13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not

[[Page 55611]]

significant for purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden estimate of 
43.8 minutes for a manual or electronic submission.
    Total burden hours associated with the PRA and OMB control number 
0694-0088 are not expected to significantly increase as a result of 
this rule. You may send comments regarding the collection of 
information associated with this rule, including suggestions for 
reducing the burden, to Jasmeet K. Seehra, Office of Management and 
Budget (OMB), by email to 
JasmeetK.Seehra@omb.eop.gov, or by fax to (202) 395-
7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment and a delay in effective date are inapplicable because 
this regulation involves a military or foreign affairs function of the 
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to 
advance U.S. policy toward Russia and therefore protect U.S. national 
security or foreign policy interests by preventing items from being 
exported, reexported, or transferred (in country) to the persons being 
added to the Entity List and items intended for certain end uses. If 
this rule were delayed to allow for notice and comment and a delay in 
effective date, then entities being added to the Entity List by this 
action would continue to be able to receive items without a license and 
to conduct activities contrary to the national security or foreign 
policy interests of the United States. In addition, publishing a 
proposed rule would give these parties notice of the U.S. Government's 
intention to place them on the Entity List and would create an 
incentive for these persons to either accelerate receiving items 
subject to the EAR to conduct activities that are contrary to the 
national security or foreign policy interests of the United States, 
and/or to take steps to set up additional aliases, change addresses, 
and other measures to try to limit the impact of the listing on the 
Entity List once a final rule was published. BIS also implements this 
rule to protect U.S. national security or foreign policy objectives 
from being undermined by immediately restricting the export, reexport 
or transfer (in-country) of certain items to Russia for military end 
uses. Further, no other law requires that a notice of proposed 
rulemaking and an opportunity for public comment be given for this 
rule. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. Accordingly, 
no regulatory flexibility analysis is required and none has been 
prepared.

List of Subjects

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 744 and 746 of the Export Administration 
Regulations (15 CFR parts 730-774) are amended as follows:

PART 744--[AMENDED]

0
1. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of August 7, 2014, 79 FR 46959 
(August 11, 2014); Notice of September 18, 2013, 78 FR 58151 
(September 20, 2013); Notice of November 7, 2013, 78 FR 67289 
(November 12, 2013); Notice of January 21, 2014, 79 FR 3721 (January 
22, 2014).

0
2. Section 744.21 is revised to read as follows:


Sec.  744.21  Restrictions on Certain `Military end uses' in the 
People's Republic of China (PRC) or for a `Military end use' or 
`Military end user' in Russia.

    (a)(1) General prohibition. In addition to the license requirements 
for items specified on the Commerce Control List (CCL), you may not 
export, reexport, or transfer (in-country) any item subject to the EAR 
listed in Supplement No. 2 to Part 744 to the PRC or Russia without a 
license if, at the time of the export, reexport, or transfer (in-
country), either:
    (i) You have ``knowledge,'' as defined in Sec.  772.1 of the EAR, 
that the item is intended, entirely or in part, for a `military end 
use,' as defined in paragraph (f) of this section, in the PRC or for a 
`military end use' or `military end user' in Russia; or
    (ii) You have been informed by BIS, as described in paragraph (b) 
of this section, that the item is or may be intended, entirely or in 
part, for a `military end use' in the PRC or for a `military end use' 
or `military end-user' in Russia.
    (2) General prohibition. In addition to the license requirements 
for 9x515 and ``600 series'' items specified on the Commerce Control 
List (CCL), you may not export, reexport, or transfer (in-country) any 
9x515 or ``600 series'' item, including items described in a .y 
paragraph of a 9x515 or ``600 series'' ECCN, to the PRC or Russia 
without a license.
    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the 
EAR published in the Federal Register, or through a separate notice 
published in the Federal Register, that a license is required for 
specific exports, reexports, or transfers (in-country) of any item 
because there is an unacceptable risk of use in or diversion to 
`military end use' activities in the PRC or for a `military end use' or 
`military end-user' in Russia. Specific notice will be given only by, 
or at the direction of, the Deputy Assistant Secretary for Export 
Administration. When such notice is provided orally, it will be 
followed by written notice within two working days signed by the Deputy 
Assistant Secretary for Export Administration or the Deputy Assistant 
Secretary's designee. The absence of BIS notification does not excuse 
the exporter from compliance with the license requirements of paragraph 
(a) of this section.
    (c) License exception. Despite the prohibitions described in 
paragraphs (a) and (b) of this section, you may export, reexport, or 
transfer (in-country) items subject to the EAR under the provisions

[[Page 55612]]

of License Exception GOV set forth in Sec.  740.11(b)(2)(i) and (ii) of 
the EAR.
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the 
``additional information'' block of the application that ``this 
application is submitted because of the license requirement in Sec.  
744.21 of the EAR (Restrictions on Certain Military End Uses in the 
People's Republic of China or for a `Military End Use' or `Military End 
User' in Russia).'' In addition, either in the additional information 
block of the application or in an attachment to the application, you 
must include for the PRC all known information concerning the military 
end use of the item(s) and for Russia, all known information concerning 
the `military end use' and `military end users' of the item(s). If you 
submit an attachment with your license application, you must reference 
the attachment in the ``additional information'' block of the 
application.
    (e) License review standards. (1) Applications to export, reexport, 
or transfer items described in paragraph (a) of this section will be 
reviewed on a case-by-case basis to determine whether the export, 
reexport, or transfer would make a material contribution to the 
military capabilities of the PRC or Russia, and would result in 
advancing the country's military activities contrary to the national 
security interests of the United States. When it is determined that an 
export, reexport, or transfer would make such a contribution, the 
license will be denied.
    (2) Applications may be reviewed under chemical and biological 
weapons, nuclear nonproliferation, or missile technology review 
policies, as set forth in Sec. Sec.  742.2(b)(4), 742.3(b)(4) and 
742.5(b)(4) of the EAR, if the end use may involve certain 
proliferation activities.
    (3) Applications for items requiring a license for other reasons 
that are destined to the PRC for a `military end use' or that are 
destined to Russia for a `military end use' or `military end-user' also 
will be subject to the review policy stated in paragraph (e)(1) of this 
section.
    (f) Military end use. In this section, `military end use' means: 
Incorporation into a military item described on the U.S. Munitions List 
(USML) (22 CFR part 121, International Traffic in Arms Regulations); 
incorporation into a military item described on the Wassenaar 
Arrangement Munitions List (as set out on the Wassenaar Arrangement Web 
site at http://www.wassenaar.org); incorporation into items classified 
under ECCNs ending in ``A018'' or under ``600 series'' ECCNs; or for 
the ``use,'' ``development,'' or ``production'' of military items 
described on the USML or the Wassenaar Arrangement Munitions List, or 
items classified under ECCNs ending in ``A018'' or under ``600 series'' 
ECCNs.

    Note to paragraph (f) of this section:  As defined in Part 772 
of the EAR, ``use'' means operation, installation (including on-site 
installation), maintenance (checking), repair, overhaul and 
refurbishing; ``development'' is related to all stages prior to 
serial production, such as: Design, design research, design 
analyses, design concepts, assembly and testing of prototypes, pilot 
production schemes, design data, process of transforming design data 
into a product, configuration design, integration design, layouts; 
and ``production'' means all production stages, such as: Product 
engineering, manufacturing, integration, assembly (mounting), 
inspection, testing, quality assurance.
    For purposes of this section, ``operation'' means to cause to 
function as intended; ``installation'' means to make ready for use, 
and includes connecting, integrating, incorporating, loading 
software, and testing; ``maintenance'' means performing work to 
bring an item to its original or designed capacity and efficiency 
for its intended purpose, and includes testing, measuring, 
adjusting, inspecting, replacing parts, restoring, calibrating, 
overhauling; and ``deployment'' means placing in battle formation or 
appropriate strategic position.

    (g) Military end user. In this section, the term `military end-
user' means the national armed services (army, navy, marine, air force, 
or coast guard), as well as the national guard and national police, 
government intelligence or reconnaissance organizations, or any person 
or entity whose actions or functions are intended to support `military 
end uses' as defined in paragraph (f) of this section.

0
3. Supplement No. 4 to part 744 is amended by adding under Russia, in 
alphabetical order, ten Russian entities.
    The additions read as follows:

[[Page 55613]]

Supplement No. 4 to Part 744--Entity List

----------------------------------------------------------------------------------------------------------------
                                                              License         License review    Federal Register
            Country                      Entity             requirement           policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
RUSSIA
 
                                                  * * * * * * *
                                 Almaz-Antey Air         For all items      Presumption of     79 FR [INSERT FR
                                  Defense Concern Main    subject to the     denial.            PAGE NUMBER] 9/
                                  System Design Bureau,   EAR. (See Sec.                        17/2014.
                                  JSC (a.k.a., A.A.       744.11 of the
                                  Raspletin Main System   EAR).
                                  Design Bureau; a.k.a.
                                  Almaz-Antey GSKB;
                                  a.k.a. Almaz-Antey
                                  GSKB Imeni
                                  Academician A.A.
                                  Raspletin; a.k.a.
                                  Almaz-Antey MSDB;
                                  a.k.a. Almaz-Antey
                                  PVO `Air Defense'
                                  Concern Lead Systems
                                  Design Bureau OAO
                                  `Open Joint-Stock
                                  Company' Imeni
                                  Academician A.A.
                                  Raspletin; a.k.a.
                                  Golovnoye Sistemnoye
                                  Konstruktorskoye
                                  Byuro Open Joint-
                                  Stock Company of
                                  Almaz-Antey PVO
                                  Concern Imeni
                                  Academician A.A.
                                  Raspletin; a.k.a.
                                  Joint Stock Company
                                  Almaz-Antey Air
                                  Defense Concern Main
                                  System Design Bureau,
                                  Named by Academician
                                  A.A. Raspletin;
                                  a.k.a. Joint Stock
                                  Company Almaz-Antey
                                  Air Defense Concern
                                  Main System Design
                                  Bureau; a.k.a. Almaz-
                                  Antey; a.k.a. JSC
                                  `Almaz-Antey' MSDB,
                                  f.k.a., Otkrytoe
                                  Aktsionernoe
                                  Obshchestvo Nauchno
                                  Proizvodstvennoe
                                  Obedinenie Almaz
                                  Imeni Akademika A.A.
                                  Raspletina; a.k.a.
                                  GSKB).
                                 Address: 16-80,
                                  Leningradsky
                                  Prospect, Moscow
                                  125190, Russia.
 
                                                  * * * * * * *
                                 Dolgoprudny Research    For all items      Presumption of     79 FR [INSERT FR
                                  Production              subject to the     denial.            PAGE ] 9/17/
                                  Enterprise, OAO         EAR. (See Sec.                        2014.
                                  (a.k.a.                 744.11 of the
                                  olgoprudnenskoye NPP    EAR).
                                  OAO; a.k.a.
                                  Dolgoprudny; a.k.a.
                                  Dolgoprudny Research
                                  Production
                                  Enterprise; a.k.a.
                                  Otkrytoe Aktsionernoe
                                  Obshchestvo
                                  Doigoprudnenskoe
                                  Nauchno
                                  Proizvodstvennoe
                                  Predpriyatie; a.k.a.
                                  OAO `Dolgoprudny
                                  Research Production
                                  Enterprise').
                                 Address: 1 Pl. Sobina,
                                  Dolgoprudny,
                                  Moskovskaya obl.
                                  141700 , Russia.
                                 Alt Address: Proshchad
                                  Sobina 1, Dolgoprudny
                                  141700, Russia.
 
                                                  * * * * * * *
                                 Gazprom, OAO (a.k.a.    For all items      See Sec.           79 FR [INSERT FR
                                  Open Joint Stock        subject to the     746.5(b) of the    PAGE NUMBER ] 9/
                                  Company Gazprom;        EAR when used in   EAR.               17/2014.
                                  a.k.a. OAO Gazprom;     projects
                                  a.k.a. Gazprom).        specified in
                                                          Sec.   746.5 of
                                                          the EAR.
                                 Address: 16 Nametkina
                                  St., Moscow, Russia
                                  GSP-7, 117997, Russia.
                                 Alt Address: 16
                                  Nametkina ul., Moscow
                                  117991, Russia.
                                 Gazprom Neft (a.k.a.    For all items      See Sec.           79 FR [INSERT FR
                                  Gazprom Neft OAO;       subject to the     746.5(b) of the    PAGE NUMBER ] 9/
                                  a.k.a. JSC Gazprom      EAR when used in   EAR.               17/2014.
                                  Neft; a.k.a. Open       projects
                                  Joint-Stock Company     specified in
                                  Gazprom Neft; f.k.a.    Sec.   746.5 of
                                  Sibirskaya Neftyanaya   the EAR.
                                  Kompaniya OAO).
                                 Address: Let. A.
                                  Galernaya, 5, ul, St.
                                  Petersburg 190000,
                                  Russia.
                                 Alt Address: Ul.
                                  Pochtamtskaya, 3-5,
                                  St. Petersburg
                                  190000, Russia.
                                 Alt Address: 3-5
                                  Pochtamtskaya St.,
                                  St. Petersburg
                                  190000, Russia.
                                 Alt Address: 125 A.
                                  Profsoyuznaya Street,
                                  Moscow 117647, Russia.
 

[[Page 55614]]

 
                                                  * * * * * * *
                                 Kalinin Machine Plant,  For all items      Presumption of     79 FR [INSERT FR
                                  JSC (a.k.a., Kalinin    subject to the     denial.            PAGE NUMBER ] 9/
                                  Machine-Building        EAR. (See Sec.                        17/2014.
                                  Plant Open Joint-       744.11 of the
                                  Stock Company; a.k.a.   EAR).
                                  Kalinin Machinery
                                  Plant-BRD; a.k.a.
                                  Mashinostroitel'NYI
                                  Zavod IM. M.I.
                                  Kalinina, G.
                                  Yekaterinburg OAO;
                                  a.k.a. Mzik OAO;
                                  a.k.a. Open-End Joint-
                                  Stock Company
                                  `Kalinin Machinery
                                  Plant.
                                  YEKATERINBURG';
                                  a.k.a. Otkrytoe
                                  Aktsionernoe
                                  Obshchestvo
                                  Mashinostroitelny
                                  Zavod
                                  IM.M.I.Kalinina,
                                  G.Ekaterinburg).
                                 Address: 18 prospekt
                                  Kosmonavtov,
                                  Ekaterinburg 620017,
                                  Sverdlovskaya obl.,
                                  Russia.
 
                                                  * * * * * * *
                                 Lukoil, OAO...........  For all items      See Sec.           79 FR [INSERT FR
                                 (a.k.a. Lukoil; a.k.a.   subject to the     746.5(b) of the    PAGE NUMBER ] 9/
                                  Lukoil Oil Company;     EAR when used in   EAR.               17/2014.
                                  a.k.a. Neftyanaya       projects
                                  Kompaniya Lukoil OOO;   specified in
                                  a.k.a. NK Lukoil OAO).  Sec.   746.5 of
                                                          the EAR.
                                 Address: 11 Sretenski
                                  boulevard, Moscow
                                  101000, Russia.
 
                                                  * * * * * * *
                                 Mytishchinski           For all items      Presumption of     79 FR [INSERT FR
                                  Mashinostroitelny       subject to the     denial.            PAGE NUMBER ] 9/
                                  Zavod, OAO (a.k.a.,     EAR. (See Sec.                        17/2014.
                                  JSC Mytishchinski       744.11 of the
                                  Machine-Building        EAR).
                                  Plant; a.k.a.
                                  Otkrytoe Aktsionernoe
                                  Obshchestvo
                                  `Mytishchinski
                                  Mashinostroitelny
                                  ZAVOD').
                                 Address: 4 ul.
                                  Kolontsova Mytishchi,
                                  Mytishchinski Raion,
                                  Moskovskayaobl
                                  141009, Russia.
                                 Alt. Address: UL
                                  Koloncova, d.4,
                                  Mytishi, Moscow
                                  region 141009, Russia.
                                 Rosneft (a.k.a. Open    For all items      See Sec.           79 FR [INSERT FR
                                  Joint-Stock Company     subject to the     746.5(b) of the    PAGE NUMBER ] 9/
                                  Rosneft Oil Company;    EAR when used in   EAR.               17/2014.
                                  a.k.a. OAO Rosneft      projects
                                  Oil Company; a.k.a.     specified in
                                  Oil Company Rosneft;    Sec.   746.5 of
                                  a.k.a. OJSC Rosneft     the EAR.
                                  Oil Company; a.k.a.
                                  Rosneft Oil Company).
                                 Address: 26/1,
                                  Sofiyskaya
                                  Embankment, 117997,
                                  Moscow, Russia.
 
                                                  * * * * * * *
                                 Surgutneftegas (a.k.a.  For all items      See Sec.           79 FR [INSERT FR
                                  Open Joint Stock        subject to the     746.5(b) of the    PAGE NUMBER ] 9/
                                  Company                 EAR when used in   EAR.               17/2014.
                                  Surgutneftegas;         projects
                                  a.k.a. Otkrytoe         specified in
                                  Aktsionernoe            Sec.   746.5 of
                                  Obshchestvo             the EAR.
                                  Surgutneftegaz;
                                  a.k.a. Surgutneftegas
                                  OAO; a.k.a.
                                  Surgutneftegas OJSC;
                                  a.k.a. Surgutneftegaz
                                  OAO).
                                 Address: ul. Grigoriya
                                  Kukuyevitskogo, 1,
                                  bld. 1, Khanty-
                                  Mansiysky Autonomous
                                  Okrug--Yugra, the
                                  city of Surgut,
                                  Tyumenskaya Oblast
                                  628415, Russia.
                                 Alt Address: korp. 1 1
                                  Grigoriya
                                  Kukuevitskogo ul.,
                                  Surgut, Tyumenskaya
                                  oblast 628404,
                                  Russia.
                                 Alt Address:..........
                                 Street Kukuevitskogo
                                  1, Surgut, Tyumen
                                  Region 628415, Russia.
 
                                                  * * * * * * *
                                 Tikhomirov Scientific   For all items      Presumption of     79 FR [INSERT FR
                                  Research Institute of   subject to the     denial.            PAGE NUMBER ] 9/
                                  Instrument Design,      EAR. (See Sec.                        17/2014.
                                  JSC (a.k.a., JSC        744.11 of the
                                  NIIP, f.k.a.,           EAR).
                                  Otkrytoe Aktsionernoe
                                  Obshchestvo Nauchno
                                  Issledovatelski
                                  Institute
                                  Priborostroeniya
                                  Imeni V.V.
                                  Tikhomirova; a.k.a.
                                  Scientific Research
                                  Institute of
                                  Instrument Design;
                                  a.k.a. JSC V.
                                  Tikhomirov Scientific
                                  Research Institute of
                                  Instrument Design.).
                                 Address: 3 Ul.
                                  Gagarina, Zhukovski,
                                  Moskovskaya Obl
                                  140180, Russia.
 

[[Page 55615]]

 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

PART 746--[AMENDED]

0
4. The authority citation for 15 CFR part 746 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899 
(January 16, 2007); Notice of May 7, 2014, 79 FR 26589 (May 9, 
2014); Notice of August 7, 2014, 79 FR 46959 (August 11, 2014).

0
5. Section 746.5 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  746.5  Russian industry sector sanctions.

    (a) License requirements--(1) General prohibition. As authorized by 
Section 6 of the Export Administration Act of 1979, a license is 
required to export, reexport or transfer (in-country) any item subject 
to the EAR listed in Supplement No. 2 to this part and items specified 
in ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 
when you know that the item will be used directly or indirectly in 
exploration for, or production of, oil or gas in Russian deepwater 
(greater than 500 feet) or Arctic offshore locations or shale 
formations in Russia, or are unable to determine whether the item will 
be used in such projects. Such items include, but are not limited to, 
drilling rigs, parts for horizontal drilling, drilling and completion 
equipment, subsea processing equipment, Arctic-capable marine 
equipment, wireline and down hole motors and equipment, drill pipe and 
casing, software for hydraulic fracturing, high pressure pumps, seismic 
acquisition equipment, remotely operated vehicles, compressors, 
expanders, valves, and risers. You should be aware that other 
provisions of the EAR, including parts 742 and 744, also apply to 
exports and reexports to Russia. License applications submitted to BIS 
under this section may include the phrase ``section 746.5'' in Block 9 
(Special Purpose) in Supplement No. 1 to part 748.
* * * * *

    Dated: September 12, 2014.
Eric L. Hirschhorn,
Under Secretary of Commerce for Industry and Security.
[FR Doc. 2014-22207 Filed 9-15-14; 11:15 am]
BILLING CODE 4310-33-P


