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26 March 1999

THREE RUSSIAN FIRMS BANNED FROM NORMAL TRADE WITH U.S. COMPANIES

(Firms placed on Commerce's "Entity List") (240)
Washington -- Three more Russian firms have been banned from normal
trade with American companies after having been found to be involved
in proliferation activities.
The Commerce Department has placed the firms on the "Entity List" of
foreign "end users."
The rule that placed the firms on the list, which became effective
March 26, requires that U.S. companies obtain licenses from Commerce's
Bureau of Export Administration (BXA) in order to export items on the
Commerce Control List of "dual-use" items to the firms. These BXA
licenses are needed to ship items that in other circumstances are not
controlled.
The three firms, the Medeleyev University of Chemical Technology of
Russia, the Moscow Aviation Institute and the Scientific Research and
Design Institute of Power Technology, were placed on the list because
of concerns about their exports to Iran that could be used in the
development of weapons of mass destruction or missiles to deliver
those weapons. At least 10 other Russian "end users" are also on the
Entity List.
The license review policy will be a presumption of denial, according
to the text of the rule that was published in the Federal Register
March 26.
Once firms are placed on the entity list, they remain on it until the
U.S. government acts to remove them.