Office of Industrial and Security Affairs, US Department of Commerce issued an order on Tuesday on the temporary suspension of exports of 3 companies accused of supplying Russia with dual-use electronic products, which are used for military needs.
Two companies: H Brothers and SN Electronics are based in the US, and another is Suntronic in the United Arab Emirates.
In addition, export restrictions are imposed on seven individuals, four of whom (Oleg Zenchenko, Ekaterina Vetoshkina, Pavel Chernikov and Vladimir Bochkarev) are residents of Russia.
Three others, residents of Canada Nikolai Goltsev, Kristina Puzyreva and Salimjon Nasriddinov living in the United States, were arrested on October 31, 2023 in the framework of a criminal case for the illegal supply of dual-use electronic products for production military in Russia.
The export restrictions stem from an indictment handed down Monday in federal court in the Eastern District of New York.
The case is part of a joint investigation by the US Department of Justice, the Department of Commerce and the FBI’s New York office.
In a statement, US Undersecretary of Commerce for Export Administration Matthew Axelrod said the seven individuals and three companies “were part of a complex global procurement scheme that illegally supplied and purchased millions of dollars in electronic products from dual use for end users in Russia. including companies associated with the Russian military.”
The restrictions on exports of the companies and individuals mentioned are imposed for 180 days, but the statement emphasizes that it is the suppression of a procurement plan “composed of brokers and companies, including two stores in Brooklyn, that support the military machinery “Russian.”
According charging documentsGoltsev, Puzyreva and Nasriddinov “illegally acquired, purchased and delivered millions of dollars of dual-use electronics from U.S. manufacturers and distributors to sanctioned end users in Russia, including through third countries.”
As noted in court documents, some electronic components with the same brands, models and part numbers, supplied by the defendants through the SH Brothers company, were found in Russian weapons and intelligence equipment captured by the Ukrainian army. In particular, in the Torn-MDM electronic intelligence complex, the RB-301B Borisoglebsk-2 electronic warfare complex, the L370 Vitebsk anti-aircraft missile system, Ka-52 helicopters and Orlan-10 unmanned aerial vehicles (UAVs) and T -72B3 battle tanks.
During the period specified in the indictment, SH Brothers made hundreds of shipments to Russia valued at more than $7 million.
Charging documents state that “Goltsev and Nasriddinov sourced and purchased American electronics under the direction of Russian purchasing agents: Bochkarev, Chernikov, Vetoshkin and Zenchenko.”
Nasriddinov and Goltsev purchased electronic components from American manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for their shipment to Brooklyn stores. Nasriddinov and Goltsev then illegally shipped these components to several intermediary companies located in other countries, including Turkey, India, China, and the United Arab Emirates, from where they were shipped to Russia.
One of these intermediaries was Suntronic, a shell company used by Bochkarev to carry out purchase transactions. Puzyreva managed numerous bank accounts and conducted financial transactions as part of this scheme.
John Sonderman, director of export controls at the US Department of Commerce, stressed that his agency “will continue to work tirelessly to ensure compliance with US export controls and prevent Russia from obtaining electronics and other components to continue their brutal war against Ukraine.”
