Extended Denial Orders Against Nordwind and S7 Continue to Limit Transactions With Them

The United States Government has extended the Temporary Denial Orders (TDOs) issued against Russian air carriers Nordwind and S7 (a/k/a Siberian Airlines). Both of these TDOs were originally issued on June 24, 2022.

Temporary Denial Orders have features that make them more extensive in their limitations. Normal export sanctions typically make it illegal to export to the sanctioned party without an explicit license (and there is typically a presumption of denial associated with the license). TDOs, on the other hand, feature the regular export restrictions but also add restrictions on acquiring things from the sanctioned party as well as restrictions on doing business with the sanctioned party.

Also, normal export sanctions typically apply to software, technology and goods, but not to services. The TDOs restrict provision of certain services, as well.

Thus some of the things that might be possible with a normally-sanctioned party become prohibited with a party subject to a TDO. If you are offered a transaction with a TDO a party, or a transaction in which a TDO party is in the chain of commerce, then it is important to analyze the possible transaction to assess whether it requires a license. For example, if you are offered parts that S7 illegally sold to an intermediary after the S7 TDO was originally in place, then your subsequent (unlicensed) acquisition may violate general prohibition ten (15 C.F.R. § 736.2(b)(10)). This assessment may require legal assistance.

TDO extensions are for one year. The TDO extensions will be published tomorrow in the Federal Register but pre-publication copies of the TDO extensions are available here:

• Nordwind
• S7 (a/k/a Siberian Airlines)