BIS Fines US Industrial Supplier for Exports to Russia Without License
The Bureau of Industry and Security fined an industrial equipment supplier more than $1.57 million after the agency said it illegally exported refiner plates to Russia. The company, Pennsylvania-based Andritz Inc., committed 36 violations of the Export Administration Regulations by shipping more than $3.1 million worth of the plates without a license between May 2023 and February 2024, BIS said.
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The plates, used in the refining process of paper-pulp-making machines, were classified as EAR99 but became subject to a Russia-related license requirement in May 2023 for certain low-level industrial goods. Although BIS said it had “no evidence” the exported plates were to be used for Russia’s military, it said “wood and flax pulp could potentially have military application.”
BIS said the company exported the plates to Germany-based Andritz Fiedler, which then sold and shipped them to entities within Russia. Andritz took “immediate steps to investigate the matter” after finding out about the shipments, the agency said, including voluntarily disclosing them to BIS and hiring an outside lawyer to investigate.
As part of a settlement agreement with BIS, Andritz must pay $1,577,397.18 within 30 days of July 29. If the company doesn’t pay, BIS may revoke its export privileges for one year, the agency said.
Andritz didn’t respond to a request for comment.