FIRST PUBLIC ADMINISTRATIVE CHARGING LETTER ISSUED BY BIS AGAINST ABRAMOVICH
July 8, 2022
On June 6, 2022, an Administrative Charging letter was issued against Roman Abramovich by the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”), alleging violations of the Export Administration Regulations (“EAR”) which was followed by seizure warrants from the U.S. Department of Justice. The two actions come as the Commerce Department continues to enforce export controls in response to Russia’s invasion of Ukraine. Notably, the decision to publish the charging letter is the first of its kind under the new regulations allowing for this type of action.
The alleged violations involve the operation of two U.S. origin aircraft to Russia without having previously acquired the required BIS export licenses. The aircraft in question, a Boeing 787-8 Dreamliner and a Gulfstream G650ER, currently located in Dubai and Russia, respectively, were subject to a license requirement while also being ineligible for any license exception. An FBI affidavit stated that Abramovich has “owned and/or controlled” the two aircraft “through a series of shell companies.” The public list of aircraft that have flown to Russia, in apparent violation of EAR, continues to be constantly updated by BIS.
If Abramovich is found to have committed the alleged violations, the Export Control Reform Act of 2018 (50 U.S.C. §§ 4801-4852) provides for administrative sanctions such as administrative monetary policies reaching up to $328,121 per violation or twice the value of the transaction, whichever is greater. The denial of export privileges remains another possible penalty for the alleged violations.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
*Editor’s Note: We would like to give special thanks to Summer Intern, Thiseas Efthymiou for his contributions to this month’s posts.
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