WASHINGTON-The Boeing Co. was fined $10 million as part of an agreement with the State Department covering improper information transfers to Russian and Ukraine partners in a venture to launch rockets with communications satellites from a floating platform in the Pacific Ocean.
When Boeing announced Sept. 30 that State had reinstated its Sea Launch export license, the firm referred to a civil settlement but did not disclose the $10 million fine. The fine is the largest ever levied under the Arms Export Act.
Under the terms of the Sept. 19 pact, $2.5 million of the $10 million was suspended but must be applied by Boeing during the next three years to a plan that will enable online computer monitoring by the State and the Defense Departments.
In the meantime, Boeing was given until mid-November, to restructure its compliance program.
It is unclear what impact, if any, the Boeing-State Department settlement will have on the Justice Department’s probe into whether the information transfers constitute criminal violations.
