83 FR 50433 - Notice of Department of State Sanctions Actions Pursuant To Section 231(a) of the Countering America's Adversaries Through Sanctions Act of 2017 (CAATSA) and Executive Order 13849 of September 20, 2018, and Notice of Additions To the CAATSA Section 231(d) Guidance

DEPARTMENT OF STATE

Federal Register Volume 83, Issue 194 (October 5, 2018)

Page Range		50433-50434
FR Document		2018-21684

The Secretary of State has determined, pursuant to CAATSA Section 231(a), that the Chinese entity Equipment Development Department of the Central Military Commission (EDD), formerly known as the General Armaments Department (GAD), has knowingly, on or after August 2, 2017, engaged in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation. The Secretary of State has selected certain sanctions to be imposed upon EDD and Li Shangfu, EDD's Director, who has been determined to be a principal executive officer of EDD, or to perform similar functions with similar authorities as such an officer. The Secretary of State is also updating previously issued guidance pursuant to CAATSA Section 231(d) to specify additional persons that are part of, or operate for or on behalf of, the defense and intelligence sectors of the Government of the Russian Federation.

Federal Register, Volume 83 Issue 194 (Friday, October 5, 2018)

[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50433-50434]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21684]


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DEPARTMENT OF STATE

[Public Notice PN 10579]


Notice of Department of State Sanctions Actions Pursuant To 
Section 231(a) of the Countering America's Adversaries Through 
Sanctions Act of 2017 (CAATSA) and Executive Order 13849 of September 
20, 2018, and Notice of Additions To the CAATSA Section 231(d) Guidance

ACTION: Notice.

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SUMMARY: The Secretary of State has determined, pursuant to CAATSA 
Section 231(a), that the Chinese entity Equipment Development 
Department of the Central Military Commission (EDD), formerly known as 
the General Armaments Department (GAD), has knowingly, on or after 
August 2, 2017, engaged in a significant transaction with a person that 
is part of, or operates for or on behalf of, the defense or 
intelligence sectors of the Government of the Russian Federation. The 
Secretary of State has selected certain sanctions to be imposed upon 
EDD and Li Shangfu, EDD's Director, who has been determined to be a 
principal executive officer of EDD, or to perform similar functions 
with similar authorities as such an officer.
    The Secretary of State is also updating previously issued guidance 
pursuant to CAATSA Section 231(d) to specify additional persons that 
are part of, or operate for or on behalf of, the defense and 
intelligence sectors of the Government of the Russian Federation.

[[Page 50434]]


DATES: The Secretary of State's determination that EDD has knowingly, 
on or after August 2, 2017, engaged in a significant transaction with a 
person that is part of, or operates for or on behalf of, the defense or 
intelligence sectors of the Government of the Russian Federation, and 
the Secretary of State's selection of certain sanctions to be imposed 
upon EDD and Li Shangfu, are effective on September 20, 2018. The 
Secretary of State's updates to previously issued guidance pursuant to 
CAATSA Section 231(d) to specify additional persons that are part of, 
or operate for or on behalf of, the defense and intelligence sectors of 
the Government of the Russian Federation are effective on September 20, 
2018.

FOR FURTHER INFORMATION CONTACT: Thomas W. Zarzecki, Director, Task 
Force 231, Bureau of International Security and Nonproliferation, 
Department of State, Washington, DC 20520, tel.: 202-647-7594, 
ZarzeckiTW@state.gov.

SUPPLEMENTARY INFORMATION: Pursuant to Section 231(a) of CAATSA and 
Executive Order 13849 the Secretary of State has selected the following 
sanctions to be imposed upon EDD:
     United States Government departments and agencies shall 
not issue any specific license or grant any other specific permission 
or authority under any statute that requires the prior review or 
approval of the United States Government as a condition for the export 
or re-export of goods or technology to EDD;
     A prohibition on any transactions in foreign exchange that 
are subject to the jurisdiction of the United States and in which EDD 
has any interest;
     A prohibition on any transfers of credit or payments 
between financial institutions, or by, through, or to any financial 
institution, to the extent that such transfers or payments are subject 
to the jurisdiction of the United States and involve any interest of 
EDD;
     All property and interests in property of EDD that are in 
the United States, that hereafter come within the United States, or 
that are or hereafter come within the possession or control of any 
United States person are blocked and may not be transferred, paid, 
exported, withdrawn, or otherwise dealt in; and
     Imposition on the principal executive officer or officers 
of EDD, or on persons performing similar functions and with similar 
authorities as such officer or officers, certain sanctions, as selected 
by the Secretary of State and described below.

The Secretary of State has selected the following sanctions to be 
imposed upon Li Shangfu, EDD's Director, who has been determined to be 
a principal executive officer of EDD, or to perform similar functions 
with similar authorities as such an officer:
     A prohibition on any transactions in foreign exchange that 
are subject to the jurisdiction of the United States and in which Li 
Shangfu has any interest;
     A prohibition on any transfers of credit or payments 
between financial institutions, or by, through, or to any financial 
institution, to the extent that such transfers or payments are subject 
to the jurisdiction of the United States and involve any interest of Li 
Shangfu;
     All property and interests in property of Li Shangfu that 
are in the United States, that hereafter come within the United States, 
or that are or hereafter come within the possession or control of any 
United States person are blocked and may not be transferred, paid, 
exported, withdrawn, or otherwise dealt in; and
     The Secretary of State shall deny a visa to Li Shangfu, 
and the Secretary of Homeland Security shall exclude Li Shangfu from 
the United States, by treating Li Shangfu as a person covered by 
section 1 of Proclamation 8693 of July 24, 2011 (Suspension of Entry of 
Aliens Subject to United Nations Security Council Travel Bans and 
International Emergency Economic Powers Act Sanctions).

Also, pursuant to the authority in CAATSA Section 231(d), the Secretary 
of State is issuing updated guidance specifying the following 
additional persons that are part of, or operate for or on behalf of, 
the defense and intelligence sectors of the Government of the Russian 
Federation:

Section 231(d) List Regarding the Defense Sector of the Government of 
the Russian Federation

 Komsomolsk-na-Amur Aviation Production Organization (KNAAPO)
 Oboronlogistika, OOO
 PMC Wagner

Section 231(d) List Regarding the Russian Intelligence Sector of the 
Government of the Russian Federation

 Antonov, Boris Alekseyevich
 Aslanov, Dzheykhun Nasimi Ogly
 Badin, Dmitriy Sergeyevich
 Bogacheva, Anna Vladislavovna
 Bovda, Maria Anatolyevna
 Bovda, Robert Sergeyevich
 Burchik, Mikhail Leonidovich
 Bystrov, Mikhail Ivanovich
 Concord Catering
 Concord Management and Consulting LLC
 Gizunov, Sergey Aleksandrovich
 Internet Research Agency LLC
 Kaverzina, Irina Viktorovna
 Korobov, Igor Valentinovich
 Kovalev, Anatoliy Sergeyevich
 Kozachek, Nikolay Yuryevich
 Krylova, Aleksandra Yuryevna
 Lukashev, Aleksey Viktorovich
 Malyshev, Artem Andreyevich
 Morgachev, Sergey Aleksandrovich
 Netyksho, Viktor Borisovich
 Osadchuk, Aleksandr Vladimirovich
 Podkopaev, Vadim Vladimirovich
 Polozov, Sergey Pavlovich
 Potemkin, Aleksey Aleksandrovich
 Prigozhin, Yevgeniy Viktorovich
 Vasilchenko, Gleb Igorevich
 Venkov, Vladimir
 Yermakov, Ivan Sergeyevich
 Yershov, Pavel Vyacheslavovich

Christopher A. Ford,
Assistant Secretary of State.
[FR Doc. 2018-21684 Filed 10-4-18; 8:45 am]
 BILLING CODE 4710-27-P

Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices 50433

preventing, minimizing, or remedying requirements, including the rules of birth, current mailing address and zip
the risk of harm to individuals, the behavior for handling PII and the code, agency, current post, signature,
recipient agency or entity (including its potential consequences if it is handled and any other information helpful in
information systems, programs, and improperly. identifying the record.
operations), the Federal Government, or Access to the Department of State, its
EXEMPTIONS PROMULGATED FOR THE SYSTEM:
national security, resulting from a annexes and posts abroad is controlled
suspected or confirmed breach. by security guards and admission is None.
The Department of State periodically limited to those individuals possessing HISTORY:
publishes in the Federal Register its a valid identification card or individuals
standard routine uses which apply to all under proper escort. All paper records The Department of State proposes to
of its Privacy Act systems of records. containing personal information are consolidate two record systems: Family
These notices appear in the form of a maintained in secured file cabinets in Liaison Office Centralized Data Bank of
Prefatory Statement (published in restricted areas, access to which is Family Member Skills and Direct
Volume 73, Number 136, Public Notice limited to authorized personnel only. Communication Network Records,
6290, on July 15, 2008). All these Access to computerized files is State-50 (previously published at 43 FR
standard routine uses apply to Family password-protected and under the 45958) and Skills Catalogue Records,
Liaison Office Records, State-50. direct supervision of the system State-49 (previously published at 43 FR
manager. The system manager has the 45957).
POLICIES AND PRACTICES FOR STORAGE OF
RECORDS:
capability of printing audit trails of Eric F. Stein,
access from the computer media, Acting Senior Agency Official for Privacy,
Records are stored both in hard copy
thereby permitting regular and ad hoc Acting Deputy Assistant Secretary, Office of
and on electronic media. A description
monitoring of computer usage. When it Global Information Services, Bureau of
of standard Department of State policies
is determined that a user no longer Administration, Department of State.
concerning storage of electronic records
needs access, the user account is [FR Doc. 2018–21689 Filed 10–4–18; 8:45 am]
is found here https://fam.state.gov/
disabled. BILLING CODE 4710–24–P
FAM/05FAM/05FAM0440.html. All Before being granted access to Family
hard copies of records containing Liaison Office Records, a user must first
personal information are maintained in be granted access to the Department of DEPARTMENT OF STATE
secured file cabinets in restricted areas, State computer system. Remote access
access to which is limited to authorized to the Department of State network from [Public Notice PN 10579]
personnel only. non-Department owned systems is
POLICIES AND PRACTICES FOR RETRIEVAL OF authorized only to unclassified systems Notice of Department of State
RECORDS: and only through a Department Sanctions Actions Pursuant To
By individual name of the family approved access program. Remote Section 231(a) of the Countering
member, name of the U.S. direct-hire access to the network is configured with America’s Adversaries Through
employee sponsor, his/her agency and the authentication requirements Sanctions Act of 2017 (CAATSA) and
current post. contained in the Office of Management Executive Order 13849 of September
and Budget Circular Memorandum A– 20, 2018, and Notice of Additions To
POLICIES AND PRACTICES FOR RETENTION AND
130. All Department of State employees the CAATSA Section 231(d) Guidance
DISPOSAL OF RECORDS:
and contractors with authorized access
Records are retired or destroyed in ACTION: Notice.
have undergone a thorough background
accordance with published Department security investigation.
of State Disposition Schedules as SUMMARY: The Secretary of State has
approved by the National Archives and RECORD ACCESS PROCEDURES: determined, pursuant to CAATSA
Records Administration (NARA) and Section 231(a), that the Chinese entity
Individuals who wish to gain access
outlined here https://foia.state.gov/ Equipment Development Department of
to or amend records pertaining to them
Learn/RecordsDisposition.aspx. More the Central Military Commission (EDD),
should write to the Director; Office of
specific information may be obtained by formerly known as the General
Information Programs and Services,
writing to the Director, Office of Armaments Department (GAD), has
A/GIS/IPS; SA–2 Department of State;
Information Programs and Services, knowingly, on or after August 2, 2017,
515 22nd Street NW, Washington, DC
A/GIS/IPS; SA–2, Department of State; engaged in a significant transaction with
20522–8100.
515 22nd Street NW, Washington, DC a person that is part of, or operates for
20522–8100. CONTESTING RECORD PROCEDURES: or on behalf of, the defense or
See above. intelligence sectors of the Government
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL of the Russian Federation. The Secretary
SAFEGUARDS: NOTIFICATION PROCEDURES: of State has selected certain sanctions to
All users are given cyber security Individuals who have reason to be imposed upon EDD and Li Shangfu,
awareness training which covers the believe that the Family Liaison Office EDD’s Director, who has been
procedures for handling Sensitive But might have records pertaining to him or determined to be a principal executive
Unclassified (SBU) information, her should write to the following officer of EDD, or to perform similar
including personally identifiable address: Director; Office of Information functions with similar authorities as
information (PII). Annual refresher Programs and Services, A/GIS/IPS; SA– such an officer.
daltland on DSKBBV9HB2PROD with NOTICES

training is mandatory. In addition, all 2 Department of State; 515 22nd Street The Secretary of State is also updating
Foreign Service and Civil Service NW, Washington, DC 20522–8100. previously issued guidance pursuant to
employees and those Locally Engaged The individual must specify that he or CAATSA Section 231(d) to specify
Staff who handle PII are required to take she request the records of the Family additional persons that are part of, or
the Foreign Service Institute distance Liaison Office to be checked. At a operate for or on behalf of, the defense
learning course, PA 459, instructing minimum, the individual must include and intelligence sectors of the
employees on privacy and security the following: Name, date and place of Government of the Russian Federation.

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50434 Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices

DATES: The Secretary of State’s The Secretary of State has selected the • Gizunov, Sergey Aleksandrovich
determination that EDD has knowingly, following sanctions to be imposed upon • Internet Research Agency LLC
on or after August 2, 2017, engaged in Li Shangfu, EDD’s Director, who has • Kaverzina, Irina Viktorovna
a significant transaction with a person been determined to be a principal • Korobov, Igor Valentinovich
that is part of, or operates for or on executive officer of EDD, or to perform • Kovalev, Anatoliy Sergeyevich
behalf of, the defense or intelligence similar functions with similar • Kozachek, Nikolay Yuryevich
sectors of the Government of the authorities as such an officer: • Krylova, Aleksandra Yuryevna
Russian Federation, and the Secretary of • A prohibition on any transactions • Lukashev, Aleksey Viktorovich
State’s selection of certain sanctions to in foreign exchange that are subject to • Malyshev, Artem Andreyevich
be imposed upon EDD and Li Shangfu, the jurisdiction of the United States and • Morgachev, Sergey Aleksandrovich
are effective on September 20, 2018. The in which Li Shangfu has any interest; • Netyksho, Viktor Borisovich
Secretary of State’s updates to • A prohibition on any transfers of • Osadchuk, Aleksandr Vladimirovich
previously issued guidance pursuant to credit or payments between financial • Podkopaev, Vadim Vladimirovich
CAATSA Section 231(d) to specify institutions, or by, through, or to any • Polozov, Sergey Pavlovich
additional persons that are part of, or financial institution, to the extent that • Potemkin, Aleksey Aleksandrovich
operate for or on behalf of, the defense such transfers or payments are subject to • Prigozhin, Yevgeniy Viktorovich
and intelligence sectors of the the jurisdiction of the United States and • Vasilchenko, Gleb Igorevich
Government of the Russian Federation involve any interest of Li Shangfu; • Venkov, Vladimir
• All property and interests in • Yermakov, Ivan Sergeyevich
are effective on September 20, 2018.
property of Li Shangfu that are in the • Yershov, Pavel Vyacheslavovich
FOR FURTHER INFORMATION CONTACT:
United States, that hereafter come Christopher A. Ford,
Thomas W. Zarzecki, Director, Task
within the United States, or that are or Assistant Secretary of State.
Force 231, Bureau of International
hereafter come within the possession or
Security and Nonproliferation, [FR Doc. 2018–21684 Filed 10–4–18; 8:45 am]
control of any United States person are
Department of State, Washington, DC BILLING CODE 4710–27–P
blocked and may not be transferred,
20520, tel.: 202–647–7594,
paid, exported, withdrawn, or otherwise
ZarzeckiTW@state.gov.
dealt in; and
SUPPLEMENTARY INFORMATION: Pursuant • The Secretary of State shall deny a SURFACE TRANSPORTATION BOARD
to Section 231(a) of CAATSA and visa to Li Shangfu, and the Secretary of [Docket No. AB 497 (Sub-No. 7X)]
Executive Order 13849 the Secretary of Homeland Security shall exclude Li
State has selected the following Shangfu from the United States, by Minnesota Northern Railroad, Inc.—
sanctions to be imposed upon EDD: treating Li Shangfu as a person covered Abandonment Exemption—in Norman
• United States Government by section 1 of Proclamation 8693 of and Polk Counties, MN
departments and agencies shall not July 24, 2011 (Suspension of Entry of Minnesota Northern Railroad, Inc.
issue any specific license or grant any Aliens Subject to United Nations (MNN) filed a verified notice of
other specific permission or authority Security Council Travel Bans and exemption under 49 CFR 1152 subpart
under any statute that requires the prior International Emergency Economic F—Exempt Abandonments to abandon
review or approval of the United States Powers Act Sanctions). approximately 5.8 miles of its ‘‘P Line’’
Government as a condition for the Also, pursuant to the authority in Subdivision between milepost 40.2 at
export or re-export of goods or CAATSA Section 231(d), the Secretary the north end of the Marsh River Bridge,
technology to EDD; of State is issuing updated guidance near Shelly, MN, and milepost 46.0 at
• A prohibition on any transactions specifying the following additional Second Street in Nielsville, MN, in
in foreign exchange that are subject to persons that are part of, or operate for Norman and Polk Counties, MN (the
the jurisdiction of the United States and or on behalf of, the defense and Line). The Line traverses United States
in which EDD has any interest; intelligence sectors of the Government Postal Service Zip Codes 56561, 56568,
• A prohibition on any transfers of of the Russian Federation: and 56581.
credit or payments between financial MNN has certified that: (1) No local
Section 231(d) List Regarding the
institutions, or by, through, or to any freight traffic has moved over the Line
Defense Sector of the Government of the
financial institution, to the extent that for at least two years; (2) no overhead
Russian Federation
such transfers or payments are subject to traffic has moved over the Line for at
the jurisdiction of the United States and • Komsomolsk-na-Amur Aviation least two years; (3) no formal complaint
involve any interest of EDD; Production Organization (KNAAPO) filed by a user of rail service on the line
• All property and interests in • Oboronlogistika, OOO
(or a state or local government acting on
property of EDD that are in the United • PMC Wagner
behalf of any such user) regarding
States, that hereafter come within the Section 231(d) List Regarding the cessation of service over the line either
United States, or that are or hereafter Russian Intelligence Sector of the is pending before the Surface
come within the possession or control of Government of the Russian Federation Transportation Board or any U.S.
any United States person are blocked District Court or has been decided in
• Antonov, Boris Alekseyevich
and may not be transferred, paid, • Aslanov, Dzheykhun Nasimi Ogly favor of the complainant within the two-
exported, withdrawn, or otherwise dealt • Badin, Dmitriy Sergeyevich year period; and (4) the requirements at
in; and • Bogacheva, Anna Vladislavovna 49 CFR 1105.7(c) (environmental
daltland on DSKBBV9HB2PROD with NOTICES

• Imposition on the principal • Bovda, Maria Anatolyevna report), 49 CFR 1105.11 (transmittal
executive officer or officers of EDD, or • Bovda, Robert Sergeyevich letter), 49 CFR 1105.12 (newspaper
on persons performing similar functions • Burchik, Mikhail Leonidovich publication), and 49 CFR 1152.50(d)(1)
and with similar authorities as such • Bystrov, Mikhail Ivanovich (notice to governmental agencies) have
officer or officers, certain sanctions, as • Concord Catering been met.
selected by the Secretary of State and • Concord Management and Consulting As a condition to this exemption, any
described below. LLC employee adversely affected by the

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Document Created: 2018-10-05 01:52:14
Document Modified: 2018-10-05 01:52:14

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		The Secretary of State's determination that EDD has knowingly, on or after August 2, 2017, engaged in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation, and the Secretary of State's selection of certain sanctions to be imposed upon EDD and Li Shangfu, are effective on September 20, 2018. The Secretary of State's updates to previously issued guidance pursuant to CAATSA Section 231(d) to specify additional persons that are part of, or operate for or on behalf of, the defense and intelligence sectors of the Government of the Russian Federation are effective on September 20, 2018.
Contact		Thomas W. Zarzecki, Director, Task Force 231, Bureau of International Security and Nonproliferation, Department of State, Washington, DC 20520, tel.: 202-647-7594, [email protected]
FR Citation		83 FR 50433