BIS Hands Down One-Year Probation for Russian Airline Over EAR Violations

The Commerce Department’s Bureau of Industry and Security slapped a one-year probation on Air Bashkortostan, a Russian airline, over 2009 violations of the Export Administration Regulations involving aircraft reexports from Russia to Iran (here). BIS alleged the airline reexported four U.S.-origin Boeing 757 aircraft, valued at $4.5 million. The airline reportedly ceased operations in 2013 (here), but BIS threatened to impose a $350,000 fine if the airline violates the EAR during the probationary period. If no violations are committed, BIS pledged to waive the penalty. The agency prohibited Air Bashkortostan from participating in any commodity, software or technology exports from the U.S. that are subject to the EAR. That prohibition includes applying for, obtaining or using any license, license exception or export control document.