Document ID: BIS-2016-0042-0001
Agency: bis
Document Type: Rule
Title: Russian Sanctions: Addition of Certain Entities to the Entity List, and Clarification of License Review Policy
Posted Date: 2016-12-27T05:00Z

[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Rules and Regulations]
[Pages 94963-94971]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31124]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 742 and 744

[Docket No. 161206999-6999-01]
RIN 0694-AH25

Russian Sanctions: Addition of Certain Entities to the Entity 
List, and Clarification of License Review Policy

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) amends the Export 
Administration Regulations (EAR) by adding twenty-three entities to the 
Entity List. The twenty-three entities 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

[[Page 94964]]

interests of the United States. BIS is taking this action to ensure the 
efficacy of existing sanctions on the Russian Federation (Russia) for 
violating international law and fueling the conflict in eastern 
Ukraine. These entities will be listed on the Entity List under the 
destinations of Russia and the Crimea region of Ukraine.
    In addition to the Entity List changes described above, this final 
rule revises the licensing policy in three sections of the Commerce 
Control List (CCL)-based controls in the EAR to clarify that BIS's 
review of license applications for exports, reexports and transfers 
(in-country) to Russia will take into account and protect U.S. national 
security interests.

DATES: This rule is effective December 27, 2016.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    The Entity List (Supplement No. 4 to part 744 of the EAR) 
identifies entities and other persons reasonably believed to be 
involved in, or that pose a significant risk of being or becoming 
involved in, activities that are contrary to the national security or 
foreign policy of the United States. The EAR imposes additional 
licensing requirements on, and limits the availability of most license 
exceptions for, exports, reexports, and transfers (in-country) to those 
persons or entities listed on the Entity List. The license review 
policy for each listed entity is identified in the License Review 
Policy column on the Entity List and the impact on the availability of 
license exceptions is described in the Federal Register notice adding 
entities or other 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) and part 746 (Embargoes and Other Special 
Controls) of the EAR.
    The End-user Review Committee (ERC) is composed of representatives 
of the Departments of Commerce (Chair), State, Defense, Energy, and 
where appropriate, the Treasury. The ERC makes decisions to add an 
entry to the Entity List by majority vote and to remove or modify an 
entry by unanimous vote. The Departments represented on the ERC have 
approved these changes to the Entity List.

Entity List Additions

Additions to the Entity List

    This rule implements the decision of the ERC to add twenty-three 
entities to the Entity List. These twenty-three entities are being 
added 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. The twenty-three entries 
being added to the Entity List consist of two entries in the Crimea 
region of Ukraine, and twenty-one entries in Russia.
    Under Sec.  744.11(b) (Criteria for revising the Entity List) of 
the EAR, 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 entities 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. 
Specifically, in this rule, BIS adds entities to the Entity List for 
violating international law and fueling the conflict in eastern 
Ukraine. These additions ensure the efficacy of existing sanctions on 
Russia. The specific additions to the Entity List and related 
authorities are as follows:

A. Entity Additions Consistent With Executive Order 13661

    Fifteen 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 military forces 
in the Crimea region of Ukraine--undermine democratic processes and 
institutions in Ukraine; threaten its peace, security, 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.
    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, in consultation with the 
Secretary of State to have either materially assisted, sponsored or 
provided financial, material or technological support for, or goods and 
services to or in support of a senior official of the government of the 
Russian Federation or to operate in the defense or related materiel 
sector in Russia. 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.
    BIS, pursuant to Executive Order 13661, and in consultation with 
the Departments of State, Defense, Energy, and the Treasury, has 
designated the fifteen entities specified in the next two paragraphs.
    Seven subsidiaries of Almaz-Antey Air Defense Concern Main System 
Design Bureau, JSC, an entity listed on the Entity List on September 
17, 2014 (79 FR 55608), as follows: DJSC Factory Krasnoe Znamya; FSUE 
FNPC Nizhegorodsky Scientific Research Institute of Radiotechnics 
(NNIIRT); OAO All-Russia Research Institute of Radio Equipment (JSC 
VNIIRA); JSC GOZ Obukhov Plant; JSC Institute of Instrumentation--
Novosibirsk Plant Comintern (NPO NIIP-NZIK); OJSC Ural Production 
Company Vector (UPP Vector); and Scientific and Production Association 
``Lianozovo Electromechanical Plant'' (NPO LEMZ).
    Eight subsidiaries of Joint-Stock Company Concern Radio-Electronic 
Technologies, an entity listed on the Entity List on July 22, 2014 (79 
FR 42455), as follows: ElTom Research and Production Company; Ekran 
Scientific Research Institute, FSUE; JSC Scientific Research Institute 
of Aircraft Equipment (NIIAO); Kaluga Scientific Research Radio 
Technology Institute (KRRTI); Research and Production Association 
KVANT; Research and Production Association M.V. Frunze; Ryazan State 
Instrument Enterprise (RSIE); and Svyaz Design Bureau, OJSC.
    The fifteen entities added to the Entity List under Executive Order 
13661 meet the criteria of Section 1, subparagraph B of the Order, as 
did the two parent entities identified above and added to the Entity 
List in 2014, because they operate in Russia's arms or related materiel 
sector. BIS adds the thirteen entities to the Entity List under this

[[Page 94965]]

rule, and imposes a license requirement for exports, reexports, or 
transfers (in-country) of all items subject to the EAR and a license 
review policy of presumption of denial. The license requirement applies 
to any transaction in which items are to be exported, reexported, or 
transferred (in-country) to any of the entities or in which such 
entities 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 license requirement 
implements an appropriate measure within the authority of the EAR to 
carry out the provisions of Executive Order 13661.

B. Entity Additions Consistent With Executive Order 13685

    Eight entities are added based on activities that are described in 
Executive Order 13685 (79 FR 77357), Blocking Property of Certain 
Persons and Prohibiting Certain Transactions with Respect to the Crimea 
Region of Ukraine, issued by the President on December 19, 2014. This 
Order took additional steps to address the Russian occupation of the 
Crimea region of Ukraine with respect to the national emergency 
declared in Executive Order 13660 of March 6, 2014, and expanded in 
Executive Order 13661 of March 16, 2014, and Executive Order 13662 of 
March 20, 2014. In particular, Executive Order 13685 prohibited the 
export, reexport, sale or supply, directly or indirectly, from the 
United States or by a U.S. person, wherever located, of any goods, 
services, or technology to the Crimea region of Ukraine. Under Section 
10 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 
(OFAC), pursuant to Executive Order 13685 on behalf of the Secretary of 
the Treasury and in consultation with the Secretary of State, has 
designated the following eight entities operating in the Crimea region 
of Ukraine: Crimean Ports; Crimean Railway; Institut Stroiproekt, AO; 
Karst, OOO; LLC Ruschemtrade; OLID Ltd.; Trans-Flot JSC; and 
Transpetrochart Co. Ltd. Four of these entities (LLC Ruschemtrade; OLID 
Ltd.; Trans-Flot JSC; and Transpetrochart Co. Ltd.) are also linked to 
OJSC Sofracht. OJSC Sovfracht was added to the Entity List on September 
7, 2016 (81 FR 61601) and is an OFAC-designated Specially Designated 
National (SDN).
    In conjunction with OFAC's designation of the eight entities, BIS 
adds all eight of the entities to the Entity List under this rule and 
imposes a license requirement for exports, reexports, or transfers (in-
country) of all items subject to the EAR and a license review policy of 
presumption of denial. The license requirement applies to any 
transaction in which items are to be exported, reexported, or 
transferred (in-country) to any of the entities or in which such 
entities 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 license requirement 
implements an appropriate measure within the authority of the EAR to 
carry out the provisions of Executive Order 13685.
    The acronyms ``a.k.a.'' (also known as) and ``f.k.a.'' (formerly 
known as) are used in entries on the Entity List to help exporters, 
reexporters and transferors to better identify listed persons on the 
Entity List.
    This final rule adds the following twenty-three entities to the 
Entity List:
Crimea Region of Ukraine
    (1) Crimean Ports, a.k.a., the following three aliases:

--State Unitary Enterprise of the Republic of Crimea `Crimean Ports';
--Sue RC `KMP'; and
--Sue RK `Crimean Ports'.

    28 Kirov Street, Kerch, Crimea Region of Ukraine 98312; and
    (2) Crimean Railway, a.k.a., the following three aliases:

--Federal State Unitary Enterprise `Crimean Railway';
--Krymzhd; and
--The Railways of Crimea.

    34 Pavlenko Street, Simferopol, Crimea Region of Ukraine 95006.
Russia
    (1) DJSC Factory Krasnoe Znamya, a.k.a., the following five 
aliases:

--OJSC Factory Krasnoe Znamya;
--OAO Zavod Krasnoe Znamya;
--AO Krasnoye Znamya;
--Krasnoye Znamya Plant OAO; and
--Krasnoye Znamya Plant JSC.

    Shabulina Travel 2a, Ryazan, 390043, Russia;
    (2) Ekran Scientific Research Institute, FSUE, a.k.a., the 
following one alias:

--FGUP Ekran.

    Kirov Avenue 24, Samara 443022, Russia; and Krzhizhanovskogo Street 
20/30, Moscow, 117218, Russia;
    (3) ElTom Research and Production Company, a.k.a., the following 
one alias:

--NPP ElTom.

    Garshin Street 11, Tomilino, Lyuberetsky, Moscow, 140070, Russia;
    (4) FSUE FNPC Nizhegorodsky Scientific Research Institute of 
Radiotechnics (NNIIRT),
    Shaposhnikov Street 5, Nizhny Novgorod, 603950, Russia;
    (5) Institut Stroiproekt, AO, a.k.a., the following six aliases:

--Aktsionernoe Obshcestvo Institut Stroiproekt;
--AO Institut Stroiproekt;
--AO Institute Stroyproekt (f.k.a., Institut Stroiproekt Zakrytoe 
Aktsionernoe Obshchestvo);
--Institute Stroyproect;
--Stroyproekt; and
--Stroyproekt Engineering Group.

    D. 13 Korp. 2 LiteraA Prospekt Dunaiski, St. Petersburg 196158, 
Russia; and 13/2 Dunaisky Prospect, St. Petersburg 196158, Russia;
    (6) JSC GOZ Obukhov Plant, a.k.a., the following one alias:

--GOZ Obukhov Plant.

    Prospekt Obukhovskoi Oboroni 120, Saint Petersburg, 192012, Russia;
    (7) JSC Institute of Instrumentation--Novosibirsk Plant Comintern 
(NPO NIIP-NZIK),
    Planetnaya Street 32, Novosibirsk, 630015, Russia;
    (8) JSC Scientific Research Institute of Aircraft Equipment 
(NIIAO), a.k.a., the following three aliases:

--SRIAE;
--NIIAO; and
--Aviation Instrument Scientific Research Institute.

    Tupoleva 18, Zhukovsky, Moscow, 140182, Russia;
    (9) Kaluga Scientific Research Radio Technology Institute (KRRTI), 
a.k.a., the following two aliases:

--KNIRTI; and
--KRRTI.

    Lenin Street 2, Zhukov, Kaluga Oblast, 249192, Russia;
    (10) Karst, OOO, a.k.a., the following four aliases:

--Construction Holding Company Old City--Karst;
--Karst Ltd.;
--LLC Karst; and
--Obshcestvo S Ogranichennoi Otvetstvennostyu Karst.

    D. 4 Litera A Pomeshchenie 69 ul. Kapitanskaya, St. Petersburg 
199397, Russia; and 4 Kapitanskaya Street, Unit A, Office 69-N, St. 
Petersburg 199397, Russia;
    (11) LLC Ruschemtrade,
    St. Mashinostroitelnyj, 3, Rostov-on-Don 344090, Russia; and 86/1, 
Temryuk, Krasnodar 353500, Russia;

[[Page 94966]]

    (12) OAO All-Russia Research Institute of Radio Equipment (JSC 
VNIIRA), a.k.a., the following three aliases:

--OJSC VNIIRA;
--OAO All-Russia Research Institute of Radio Technology; and All-
Russian Scientific Research Institute of Radio Equipment.

    Shkipersky Protok 19, V.I. St. Petersburg, 199106, Russia;
    (13) OJSC Ural Production Company Vector (UPP Vector), a.k.a., the 
following two aliases:

--JSC `SCP' Vector; and
--JSC PPM Vector.

    Gagarin Street 28, Ekaterinburg, 620078, Russia;
    (14) Olid Ltd., a.k.a., the following one alias:

--OOO Solid.

    ul Mira 4, Novorossiysk, Krasnodarskiy kray 630024, Russia;
    (15) Research and Production Association KVANT, a.k.a., the 
following one alias:

--NPO Kvant.

    Bolshaya Saint Petersburg 73, Velikii-Novgorod 173003, Russia;
    (16) Research and Production Association M.V. Frunze, a.k.a., the 
following two aliases:

--NNPO Frunze; and
--NZIF.

    Gagarin Prospect 174, Nizhny Novgorod, 606950, Russia;
    (17) Ryazan State Instrument Enterprise (RSIE), a.k.a., the 
following two aliases:

--RSIE; and
--GRPZ.

    Seminarskaya Street 32, Ryazan, 390000, Russia;
    (18) Scientific and Production Association ``Lianozovo 
Electromechanical Plant'' (NPO LEMZ), a.k.a., the following four 
aliases:

--JSC LEMZ R&P Corporation;
--OAO Design Bureau Lianozovsky Radars Moscow;
--Lianozovsky Electromechanical factory; and
--OAO Design Bureau Lianozovsky Radars Moscow.

    Dmitrovskoye Shosse 110, Moscow, 127411, Russia;
    (19) Svyaz Design Bureau, OJSC, a.k.a., the following one alias:

--KB Svyaz.

    Prospect Sokolova 96, Rostov-on-Don 344010, Russia;
    (20) Trans-Flot JSC, a.k.a., the following one alias:

--JSC Trans-Flot.

    ul Ventseka 1/97, Samara 443099, Russia; and
    (21) Transpetrochart Co. Ltd.,
    Prospekt Engelsa 30, St. Petersburg 194156, Russia.

Changes to CB, NP and NS Licensing Policy To Reflect That Certain 
License Applications for CB and NP Items to Russia Will Be Reviewed in 
Accordance With NS Licensing Policy

    In addition to the Entity List changes described above, this final 
rule revises the licensing policy in three sections of part 742 of the 
EAR to clarify that BIS's review of license applications for exports, 
reexports and transfers (in-country) to Russia will take into account 
and protect U.S. national security interests.
    Part 742 of the EAR specifies the licensing policy for CCL based 
controls. The licensing policies in the respective sections of part 742 
provide applicants with advance notice of the likelihood of any 
particular license application's approval or denial. In addition to 
considering the licensing policies described in these CCL based 
controls, BIS reviews each application on its own merits, taking into 
account the bona fides of the parties involved in the transaction, as 
well as whether the transaction would be detrimental to U.S. national 
security and foreign policy interests or not, and considering recent 
international events that may be relevant to whether the U.S. 
Government should approve or deny a license application.
    In this final rule, BIS revises the CCL based controls sections of 
the EAR to clarify that it will review license applications to export 
or reexport to Russia items subject to the EAR and controlled for 
chemical and biological weapons proliferation (CB), nuclear 
nonproliferation (NP) or national security (NS) reasons under a 
presumption of denial, if the items proposed for export or reexport 
would make a direct and significant contribution to Russia's military 
capabilities. This final rules revises Sec. Sec.  742.2 and 742.3 of 
the EAR to clarify that license applications for items controlled for 
CB and NP reasons will be reviewed in accordance with the revised 
licensing policies in paragraph (b)(4) of both Sec. Sec.  742.2 and 
742.3 and with the revised licensing policy in paragraph (b)(7) of 
Sec.  742.4 of the EAR. This rule revises Sec.  742.4(b)(7) of the EAR 
to clarify that license applications for items controlled for NS 
reasons will be reviewed under a presumption of denial if the items 
would make a direct and significant contribution to Russia's military 
capabilities, including but not limited to, the major weapons systems 
described in Supplement No. 7 to part 742 of the EAR.
    BIS is imposing this review policy in order to protect U.S. 
national security interests and to ensure the efficacy of existing 
sanctions on Russia for violating international law and fueling the 
conflict in eastern Ukraine. These changes will also assist applicants 
because they provide advance warning that BIS's review of license 
applications will specifically take into account these considerations 
that are needed in order to protect U.S. national security interests.
    As noted above, the U.S. Government has already been taking into 
account these national security concerns when reviewing license 
applications for items subject to the EAR proposed for shipment to 
Russia. Therefore, BIS does not anticipate that the changes in this 
final rule will result in an increase in the number of license 
applications for items destined to Russia that are denied. However, BIS 
anticipates that license applicants will benefit by this clarification 
of existing policy in part 742 of the EAR.

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 4, 2016, 81 FR 52587 (August 8, 2016), 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 significant for 
purposes of Executive Order 12866.

[[Page 94967]]

    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 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 
Jasmeet_K._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 
protect U.S. national security or foreign policy interests by 
preventing items from being exported, reexported, or transferred (in 
country) to the entities being added to the Entity List. If the 
effective date of this rule were delayed to allow for notice and 
comment, then the 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 their receipt of 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/or take other measures to try to limit the impact of the listing on 
the Entity List once a final rule is published.
    In addition to the Entity List changes described above, the changes 
this regulation makes to the licensing policy in three sections of the 
CCL based controls part of the EAR (Sec. Sec.  742.2, 742.3, and 742.4) 
involve a military or foreign affairs function of the United States. 
(See 5 U.S.C. 553(a)(1)). These licensing policy changes are needed in 
order to protect U.S. national and foreign policy interests. These 
changes make clear that BIS's review of license applications for 
exports, reexports and transfers (in-country) to Russia will take into 
account and protect U.S. national security interests. This review 
policy is needed in order to protect U.S. national security interests 
and to ensure the efficacy of existing sanctions on Russia for 
violating international law and fueling the conflict in eastern 
Ukraine.
    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 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    For the reasons stated in the preamble, the Bureau of Industry and 
Security amends parts 742 and 744 of the Export Administration 
Regulations (15 CFR parts 730-774) as follows:

PART 742--[AMENDED]

0
1. The authority citation for 15 CFR part 742 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 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; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 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. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of November 12, 2015, 80 FR 70667 (November 13, 2015); Notice 
of August 4, 2016, 81 FR 52587 (August 8, 2016).

0
2. Section 742.2 is amended by revising paragraph (b)(4) to read as 
follows:

Sec.  742.2   Proliferation of chemical and biological weapons.

* * * * *
    (b) * * *
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China or 
Russia, will be reviewed in accordance with the licensing policies in 
both paragraph (b) of this section and Sec.  742.4(b)(7).
* * * * *

0
3. Section 742.3 is amended by revising paragraph (b)(4) to read as 
follows:

Sec.  742.3   Nuclear nonproliferation.

* * * * *
    (b) * * *
    (4) License applications for items described in paragraph (a) of 
this section, when destined to the People's Republic of China or 
Russia, will be reviewed in accordance with the licensing policies in 
both paragraph (b) of this section and Sec.  742.4(b)(7).
* * * * *

0
4. Section 742.4 is amended by revising paragraph (b)(7) to read as 
follows:

Sec.  742.4   National security.

* * * * *
    (b) * * *
    (7) For the People's Republic of China (PRC), there is a general 
policy of approval for license applications to export, reexport, or 
transfer items to civil end-uses. There is a presumption of denial for 
license applications to export, reexport or transfer items that would 
make a direct and significant contribution to the PRC's or Russia's 
military capabilities such as, but not limited to, the major weapons 
systems described in Supplement No. 7 to part 742 of the EAR.
* * * * *

PART 744--[AMENDED]

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

    Authority:  50 U.S.C. 4601 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.

[[Page 94968]]

786; Notice of November 12, 2015, 80 FR 70667 (November 13, 2015); 
Notice of January 20, 2016, 81 FR 3937 (January 22, 2016); Notice of 
August 4, 2016, 81 FR 52587 (August 8, 2016); Notice of September 
15, 2016, 81 FR 64343 (September 19, 2016).

0
6. Supplement No. 4 to part 744 is amended:
0
a. By adding under the destination of Crimea region of Ukraine, in 
alphabetical order, two entities; and
0
b. By adding under the destination of Russia, in alphabetical order, 
twenty-one Russian entities.
    The additions read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

----------------------------------------------------------------------------------------------------------------
                                                              License         License review    Federal Register
        Country                     Entity                  requirement           policy            citation
----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
CRIMEA REGION OF                                               * * * * * *
 UKRAINE.
                        Crimean Ports, a.k.a., the      For all items       Presumption of     81 FR [INSERT FR
                         following three aliases:        subject to the      denial.            PAGE NUMBER AND
                        --State Unitary Enterprise of    EAR. (See Sec.                         12/27/16].
                         the Republic of Crimea          744.11 of the
                         `Crimean Ports';                EAR).
                        --Sue RC `KMP'; and
                        --Sue RK `Crimean Ports'.
                        28 Kirov Street, Kerch, Crimea
                         Region of Ukraine 98312.
                        Crimean Railway, a.k.a., the    For all items       Presumption of     81 FR [INSERT FR
                         following three aliases:        subject to the      denial.            PAGE NUMBER AND
                        --Federal State Unitary          EAR. (See Sec.                         DATE OF 12/27/
                         Enterprise `Crimean Railway';   744.11 of the                          16].
                        --Krymzhd; and                   EAR).
                        --The Railways of Crimea.
                        34 Pavlenko Street,
                         Simferopol, Crimea Region of
                         Ukraine 95006.
                                                               * * * * * *
----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA................                                         * * * * * *
                        DJSC Factory Krasnoe Znamya,    For all items       Presumption of     81 FR [INSERT FR
                         a.k.a., the following five      subject to the      denial.            PAGE NUMBER AND
                         aliases:                        EAR. (See Sec.                         12/27/16].
                        --OJSC Factory Krasnoe Znamya;   744.11 of the
                        --OAO Zavod Krasnoe Znamya;      EAR).
                        --AO Krasnoye Znamya;
                        --Krasnoye Znamya Plant OAO;
                         and
                        --Krasnoye Znamya Plant JSC.
                        Shabulina Travel 2a, Ryazan,
                         390043, Russia.
                                                               * * * * * *
                        Ekran Scientific Research       For all items       Presumption of     81 FR [INSERT FR
                         Institute, FSUE, a.k.a., the    subject to the      denial.            PAGE NUMBER AND
                         following one alias:            EAR. (See Sec.                         12/27/16].
                        --FGUP Ekran.                    744.11 of the
                        Kirov Avenue 24, Samara          EAR).
                         443022, Russia; and
                         Krzhizhanovskogo Street 20/
                         30, Moscow, 117218, Russia.
                                                               * * * * * *
                        ElTom Research and Production   For all items       Presumption of     81 FR [INSERT FR
                         Company, a.k.a., the            subject to the      denial.            PAGE NUMBER AND
                         following one alias:            EAR. (See Sec.                         12/27/16].
                        --NPP ElTom.                     744.11 of the
                        Garshin Street 11, Tomilino,     EAR).
                         Lyuberetsky, Moscow, 140070,
                         Russia.
                                                               * * * * * *
                       -----------------------------------------------------------------------------------------
                        FSUE FNPC Nizhegorodsky         For all items       Presumption of     81 FR [INSERT FR
                         Scientific Research Institute   subject to the      denial.            PAGE NUMBER AND
                         of Radiotechnics (NNIIRT),      EAR. (See Sec.                         12/27/16].
                         Shaposhnikov Street 5, Nizhny   744.11 of the
                         Novgorod, 603950, Russia.       EAR).
                                                               * * * * * *

[[Page 94969]]

 
                        Institut Stroiproekt, AO,       For all items       Presumption of     81 FR [INSERT FR
                         a.k.a., the following six       subject to the      denial.            PAGE NUMBER AND
                         aliases:                        EAR. (See Sec.                         12/27/16].
                        --Aktsionernoe Obshcestvo        744.11 of the
                         Institut Stroiproekt;           EAR).
                        --AO Institut Stroiproekt;
                        --AO Institute Stroyproekt
                         (f.k.a., Institut Stroiproekt
                         Zakrytoe Aktsionernoe
                         Obshchestvo);
                        --Institute Stroyproect;
                        --Stroyproekt; and
                        --Stroyproekt Engineering
                         Group.
                        D. 13 Korp. 2 LiteraA Prospekt
                         Dunaiski, St. Petersburg
                         196158, Russia; and 13/2
                         Dunaisky Prospect, St.
                         Petersburg 196158, Russia.
                                                               * * * * * *
                        JSC GOZ Obukhov Plant, a.k.a.,  For all items       Presumption of     81 FR [INSERT FR
                         the following one alias:        subject to the      denial.            PAGE NUMBER AND
                        --GOZ Obukhov Plant. Prospekt    EAR. (See Sec.                         12/27/16].
                         Obukhovskoi Oboroni 120,        744.11 of the
                         Saint Petersburg, 192012,       EAR).
                         Russia.
                        JSC Institute of                For all items       Presumption of     81 FR [INSERT FR
                         Instrumentation--Novosibirsk    subject to the      denial.            PAGE NUMBER AND
                         Plant Comintern (NPO NIIP-      EAR. (See Sec.                         12/27/16].
                         NZIK), Planetnaya Street 32,    744.11 of the
                         Novosibirsk, 630015, Russia.    EAR).
                        JSC Scientific Research         For all items       Presumption of     81 FR [INSERT FR
                         Institute of Aircraft           subject to the      denial.            PAGE NUMBER AND
                         Equipment (NIIAO), a.k.a.,      EAR. (See Sec.                         12/27/16].
                         the following three aliases:    744.11 of the
                        --SRIAE;                         EAR).
                        --NIIAO; and
                        --Aviation Instrument
                         Scientific Research
                         Institute.
                        Tupoleva 18, Zhukovsky,
                         Moscow, 140182, Russia.
                                                               * * * * * *
                        Kaluga Scientific Research      For all items       Presumption of     81 FR [INSERT FR
                         Radio Technology Institute      subject to the      denial.            PAGE NUMBER AND
                         (KRRTI), a.k.a., the            EAR. (See Sec.                         12/27/16].
                         following two aliases:          744.11 of the
                        --KNIRTI; and                    EAR).
                        --KRRTI.
                        Lenin Street 2, Zhukov, Kaluga
                         Oblast, 249192, Russia.
                                                               * * * * * *
                        Karst, OOO, a.k.a., the         For all items       Presumption of     81 FR [INSERT FR
                         following four aliases:         subject to the      denial.            PAGE NUMBER AND
                        --Construction Holding Company   EAR. (See Sec.                         12/27/16].
                         Old City--Karst;                744.11 of the
                        --Karst Ltd.;                    EAR).
                        --LLC Karst; and
                        --Obshcestvo S Ogranichennoi
                         Otvetstvennostyu Karst.
                        D. 4 Litera A Pomeshchenie 69
                         ul. Kapitanskaya, St.
                         Petersburg 199397, Russia;
                         and 4 Kapitanskaya Street,
                         Unit A, Office 69-N, St.
                         Petersburg 199397, Russia.
                                                               * * * * * *
                        LLC Ruschemtrade, St.           For all items       Presumption of     81 FR [INSERT FR
                         Mashinostroitelnyj, 3, Rostov-  subject to the      denial.            PAGE NUMBER AND
                         on-Don 344090, Russia; and 86/  EAR. (See Sec.                         12/27/16].
                         1, Temryuk, Krasnodar 353500,   744.11 of the
                         Russia.                         EAR).
                                                               * * * * * *

[[Page 94970]]

 
                        OAO All-Russia Research         For all items       Presumption of     81 FR [INSERT FR
                         Institute of Radio Equipment    subject to the      denial.            PAGE NUMBER AND
                         (JSC VNIIRA), a.k.a., the       EAR. (See Sec.                         12/27/16].
                         following three aliases:        744.11 of the
                        --OJSC VNIIRA;                   EAR).
                        --OAO All-Russia Research
                         Institute of Radio
                         Technology; and
                        All-Russian Scientific
                         Research Institute of Radio
                         Equipment.
                        Shkipersky Protok 19, V.I. St.
                         Petersburg, 199106, Russia.
                                                               * * * * * *
                        OJSC Ural Production Company    For all items       Presumption of     81 FR [INSERT FR
                         Vector (UPP Vector), a.k.a.,    subject to the      denial.            PAGE NUMBER AND
                         the following two aliases:      EAR. (See Sec.                         12/27/16].
                        --JSC `SCP' Vector; and          744.11 of the
                        --JSC PPM Vector.                EAR).
                        Gagarin Street 28,
                         Ekaterinburg, 620078, Russia.
                                                               * * * * * *
                        Olid Ltd., a.k.a., the          For all items       Presumption of     81 FR [INSERT FR
                         following one alias:            subject to the      denial.            PAGE NUMBER AND
                        --OOO Solid.                     EAR. (See Sec.                         12/27/16].
                        ul Mira 4, Novorossiysk,         744.11 of the
                         Krasnodarskiy kray 630024,      EAR).
                         Russia.
                                                               * * * * * *
                        Research and Production         For all items       Presumption of     81 FR [INSERT FR
                         Association KVANT, a.k.a.,      subject to the      denial.            PAGE NUMBER AND
                         the following one alias:        EAR. (See Sec.                         12/27/16].
                        --NPO Kvant.                     744.11 of the
                        Bolshaya Saint Petersburg 73,    EAR).
                         Velikii-Novgorod 173003,
                         Russia.
                        Research and Production         For all items       Presumption of     81 FR [INSERT FR
                         Association M.V. Frunze,        subject to the      denial.            PAGE NUMBER AND
                         a.k.a., the following two       EAR. (See Sec.                         12/27/16].
                         aliases:                        744.11 of the
                        --NNPO Frunze; and               EAR).
                        --NZIF.
                        Gagarin Prospect 174, Nizhny
                         Novgorod, 606950, Russia.
                                                               * * * * * *
                        Ryazan State Instrument         For all items       Presumption of     81 FR [INSERT FR
                         Enterprise (RSIE), a.k.a.,      subject to the      denial.            PAGE NUMBER AND
                         the following two aliases:      EAR. (See Sec.                         12/27/16].
                        --RSIE; and                      744.11 of the
                        --GRPZ.                          EAR).
                        Seminarskaya Street 32,
                         Ryazan, 390000, Russia.
                                                               * * * * * *
                        Scientific and Production       For all items       Presumption of     81 FR [INSERT FR
                         Association ``Lianozovo         subject to the      denial.            PAGE NUMBER AND
                         Electromechanical Plant''       EAR. (See Sec.                         12/27/16].
                         (NPO LEMZ), a.k.a., the         744.11 of the
                         following four aliases:         EAR).
                        --JSC LEMZ R&P Corporation;
                        --OAO Design Bureau
                         Lianozovsky Radars Moscow;
                        --Lianozovsky
                         Electromechanical factory;
                         and
                        --OAO Design Bureau
                         Lianozovsky Radars Moscow.
                        Dmitrovskoye Shosse 110,
                         Moscow, 127411, Russia.
                                                               * * * * * *
                        Svyaz Design Bureau, OJSC,      For all items       Presumption of     81 FR [INSERT FR
                         a.k.a., the following one       subject to the      denial.            PAGE NUMBER AND
                         alias:                          EAR. (See Sec.                         12/27/16].
                        --KB Svyaz.                      744.11 of the
                        Prospect Sokolova 96, Rostov-    EAR).
                         on-Don 344010, Russia.
                                                               * * * * * *
                        Trans-Flot JSC, a.k.a., the     For all items       Presumption of     81 FR [INSERT FR
                         following one alias:            subject to the      denial.            PAGE NUMBER AND
                        --JSC Trans-Flot.                EAR. (See Sec.                         12/27/16].
                        ul Ventseka 1/97, Samara         744.11 of the
                         443099, Russia.                 EAR).
                                                               * * * * * *
                        Transpetrochart Co. Ltd.,       For all items       Presumption of     81 FR [INSERT FR
                        Prospekt Engelsa 30, St.         subject to the      denial.            PAGE NUMBER AND
                         Petersburg 194156, Russia.      EAR. (See Sec.                         12/27/16].
                                                         744.11 of the
                                                         EAR).
 

[[Page 94971]]

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

    Dated: December 20, 2016.
Eric L. Hirschhorn,
Under Secretary of Commerce for Industry and Security.
[FR Doc. 2016-31124 Filed 12-23-16; 8:45 am].
 BILLING CODE 3510-33-P