Today, the U.S. Commerce Department, through its Bureau of Industry and Security (BIS), is updating its list of aircraft that have flown into Russia in apparent violation of the Export Administration Regulations (EAR) by adding the first three Iranianowned and -operated aircraft providing cargo flight services on U.S.-origin aircraft to Russia. There are now a total of 183 aircraft identified on the list for apparent violations of U.S. export controls.
“Our expansive controls, especially on items such as electronics and aircraft parts, have degraded Russia’s defense industrial base, severely restricted their access to the world economy, and isolated them from the international community,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “When Russia seeks to engage pariah states like Iran in order to backfill for what the international community has cut off, we will take action to thwart such attempts and disrupt such connections.”
Using commercially available data, BIS identified three Iranian cargo aircraft subject to the EAR flying and transporting goods, including electronic items, to Russia in apparent violation of BIS’s stringent export controls on Russia. These aircraft are operated by Mahan Air, Qeshm Fars Air, and Iran Air.
BIS continues to identify and take swift action against foreign airlines operating U.S.-origin aircraft in violation of U.S. export controls, including those that are aiding Russia’s ability to acquire the parts and inputs it needs to sustain its military aggression against Ukraine in violation of the EAR. Based on publicly available information there has been a significant increase in Iranian cargo flights to Russia since its invasion of Ukraine in February 2022. Moreover, Iran has publicly announced its intention to expand cooperation with Russia in the aviation sector by providing spare parts for its airplanes.
Any subsequent actions taken with regard to any of the listed aircraft, including, but not limited to, refueling, maintenance, repair, or the provision of spare parts or services, are subject to the prohibitions outlined in General Prohibition Ten of the EAR (15 C.F.R. § 736.2(b)(10)), which provides:
(10) General Prohibition Ten - Proceeding with transactions with knowledge that a violation has occurred or is about to occur (Knowledge Violation to Occur). You may not sell, transfer, export, reexport, finance, order, buy, remove, conceal, store, use, loan, dispose of, transport, forward, or otherwise service, in whole or in part, any item subject to the EAR and exported or to be exported with knowledge that a violation of the Export Administration Regulations, the Export Administration Act or any order, license, License Exception, or other authorization issued thereunder has occurred, is about to occur, or is intended to occur in connection with the item. Nor may you rely upon any license or License Exception after notice to you of the suspension or revocation of that license or exception. There are no License Exceptions to this General Prohibition Ten in part 740 of the EAR.
On February 24, 2022, BIS imposed expansive controls on aviation-related items to Russia, including a license requirement for the export, reexport or transfer (in-country) to Russia of any aircraft or aircraft parts on the Commerce Control List. Belarus was made subject to these restrictions on March 2, 2022. These restrictions apply to airplanes subject to the EAR bearing the livery, colors, or logo of an Iranian company/airline.
The airlines identified today are already subject to a variety of restrictions by the U.S. government for engagement in Iran’s consistent activity that is contrary to U.S. national security and foreign policy interests.
Mahan Air has been on BIS’s Denied Persons List since March 2008 due to numerous significant, continuing, deliberate, and covert violations of the EAR. Moreover, a BIS-issued Temporary Denial Order (TDO) against Mahan Air remains in effect. Any named parties to the TDO, which further encompasses any related parties, agents, representatives, or those acting for or on their behalf, are broadly prohibited from directly or indirectly participating “in any way” in a transaction involving items subject to the EAR. The TDO also prohibits third parties from engaging in a broad range of conduct subject to the EAR with denied persons. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also designated Mahan Air pursuant to Executive Order 13224, a counterterrorism authority, for providing financial, material and technological support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). In 2019, the U.S. Department of State designated Mahan Air pursuant to Executive Order 13382 – which targets weapons of mass destruction proliferators and their supporters.
OFAC also has designated Qeshm Fars Air pursuant to Executive Order 13224 in January 2019 for being owned or controlled by Mahan Air, and for providing material support to Iran’s IRGCQF. Both Mahan Air and Qeshm Fars Air are identified as Specially Designated Global Terrorist (SDGT) on OFAC's list of Specially Designated Nationals and Blocked Persons (SDN List). The EAR require a license to an SDGT of any item subject to the EAR absent separate authorization from OFAC.
Iran Air was added to BIS’s Entity List in March 2020 after it was determined that the airline transported military-related equipment on behalf of Iran's IRGC and Ministry of Defense and Armed Forces Logistics (MODAFL).
The list below has been updated with additions in bold. Please note this list is not exhaustive, and the restrictions also apply in any situation in which a person has knowledge that a violation of the EAR has occurred, is about to occur, or is intended to occur in connection with an aircraft or other item that is subject to the EAR, whether or not such aircraft or other item is included on this list. This list will continue to be updated as circumstances warrant.
Additional BIS resources on export controls implemented in response to Russia’s invasion of Ukraine are available at: https://bis.doc.gov/index.php/policy-guidance/country-guidance/Russia-belarus
The public may submit confidential enforcement tips via the BIS website: https://www.bis.doc.gov/index.php/component/rsform/form/14?task=forms.edit, or by calling the Enforcement Hotline at 1-800-424-2980.
These BIS actions were taken under the authority of the Export Control Reform Act of 2018 and the EAR. For more information, visit www.bis.doc.gov.
Original source can be found here.
