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IBM East Europe/Asia Ltd. Fined $8.5 Million for Illegal
Exports to Russian Nuclear Weapons Laboratory: On July 31, a U.S. district
judge in Washington D.C. imposed a criminal fine of $8.5 million on IBM
East Europe/Asia Ltd. for exporting computers to Arzamas-16, a Russian
nuclear weapons laboratory, in violation of the International Emergency
Economic Powers Act and the Export Administration Regulations.
Additionally, the Bureau of Export Administration imposed a civil penalty
of $171,000, the maximum permitted under the charges. BXA also
denied IBM East Europe/Asia Ltd.'s export privileges for two years,
but suspended that denial. The company agreed that it will not engage in
transactions with nuclear or military end-users/end-uses without prior
authorization by BXA during the two years, and also would not use
license exception CTP during that period. The company would be eligible
to apply for a license for any transaction that ordinarily would be eligible
for license exception CTP. BXA Export Enforcement officials noted that
the company cooperated fully with the investigation and acted
responsibly in resolving this case.
Please consult the Justice Department's press release for further information on this case by clicking the thumbnail copy of each page on left |
