US Sanctions Unveil Russia’s Covert Arms Procurement Network
(Source: Defense-Aerospace.com; posted Oct. 03, 2022)
PARIS --- On Friday Sept. 30, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a new list of people and corporate entities that will be sanctioned for having contributed to, or supported, Russia’s illegal invasion of Ukraine.

The list notably identifies a network that, according to the Treasury, is involved in the illegal procurement of weapons, or weapon components, for Russia. This network is described in detail by the Treasury, and includes Chinese and Armenian companies.

Below is an excerpt from the Treasury statement, which is available in its entirety here on the Treasury website.

Treasury Sanctions International Suppliers for Supporting Russia’s Defense Sector

WASHINGTON -- Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 14 persons in Russia’s military-industrial complex, including two international suppliers, three key leaders of Russia’s financial infrastructure, immediate family members of some of senior Russian officials, and 278 members of Russia’s legislature for enabling Russia’s sham referenda and attempt to annex sovereign Ukrainian territory.

In addition, OFAC issued new guidance that warns of the heightened sanctions risk that international actors outside of Russia would face for providing political or economic support to Russia as a result of its illegal attempts to change the status of Ukrainian territory.

…/…

Russia’s Defense Procurement Around the World

OFAC is immediately implementing the G7 Leaders’ commitment and the new guidance outlined in FAQ 1091 by designating several international suppliers and associated individuals that have supported Russia’s defense sector. Through its historically unprecedented campaign of sanctions and export controls, the United States and an international coalition of allies and partners have devastated Russia’s ability to access foreign components and technology.

As a result, Russia’s defense-industrial base is desperate to provision its war efforts and has resorted to third-country intermediaries and suppliers. Today’s action is also complemented by Commerce’s listing of 57 Russian entities on the Entity List for acquiring and attempting to acquire U.S.-origin items in support of the Russian military.

Illicit Procurement Network

Today’s action includes additional designations against the network of Radioavtomatika, a U.S.- designated Russian defense procurement firm that specializes in procuring foreign items for Russia’s defense industry and continues its attempts to evade sanctions. Today’s designation of recently established front companies and foreign intermediaries highlights the U.S. government’s continuing efforts to impose costs upon global actors for their support to Russia’s defense sector.

--Vladimir Aleksandrovich Ivanov (Ivanov), Sergey Vyacheslavovich Byzov (Byzov), and Dmitrii Vladimirovich Galin (Galin) are all Russia-based individuals who represented Radioavtomatika on its leadership team. Ivanov is the company’s general director, Byzov is the First Deputy General Director, and Galin is a Deputy General Director and a shareholder of the firm.

Ivanov, Byzov, and Galin were designated today pursuant to E.O. 14024 for being or having been leaders, officials, senior executive officers, or members of the boards of directors of Radioavtomatika, an entity whose property and interests in property are blocked pursuant to E.O. 14024.

--Novastream Limited (Novastream) is a Russian firm established in April 2022. Novastream was established in close coordination with Radioavtomatika officials and has supplied goods to Radioavtomatika. In fact, Novastream maintains the same address as a former Radioavtomatika representative office. Its General Director, Andrei Vladimirovich Khokhlov (Khokhlov), was previously a leader of Radioavtomatika and was specifically linked to one of its representative offices.

Novastream was designated pursuant to E.O. 14024 for acting or purporting to act for or on behalf of, directly or indirectly, Radioavtomatika. Khokhlov was designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of Novastream and for being or having been a leader, official, senior executive officer, or member of the board of directors of Radioavtomatika.

--OFAC today also designated two third-country entities supporting Radioavtomatika. Sinno Electronics Co., Limited (Sinno), a People’s Republic of China supplier of Radioavtomatika, and Taco LLC (Taco), an Armenian supplier.

Sinno, with awareness of restrictions on exports to Russia, has maintained a continuing relationship with Radioavtomaika before and after Russia’s further invasion of Ukraine. In June, Sinno was placed on Commerce’s Entity List for providing support to Russia’s military and/or defense industrial base and for continuing to contract to supply Russian entity listed and sanctioned parties after Russia’s further invasion of Ukraine. Radioavtomatika pays Taco for importing components and handling the procurement process within Armenia. Furthermore, both Sinno and Taco have interacted with each other in relation to their work with Radioavtomatika.

Both Sinno and Taco were designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Radioavtomatika. Sinno was previously added to the U.S. Department of Commerce’s Entity List on June 28, 2022.

Belarusian Supplier of Russia’s Defense-Industrial Base

As part of its ongoing global efforts to target suppliers of Russia’s defense-industrial base, OFAC designated Open Joint Stock Company Svetlogorsk Khimvolokno (Sohim), which provides critical material to Russia’s defense industry. Sohim is a Belarusian state-owned textile and fiber manufacturer that exports to Russia.

Sohim was designated today pursuant to E.O. 14038 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the Government of Belarus.

Russian Technology and Defense Firms

Treasury additionally took action today against multiple firms determined to operate or have operated in the defense and related material sector and/or the technology sector of the Russian Federation economy.

Scientific-Technical Center for Electronic Warfare, also known as AO NTTs REB, engages in research and development for Russia’s Ministry of Defense. AO NTTs REB is involved in the development of an electronic warfare system used by drones in combat, which is used by Russia’s Armed Forces.

--In addition, OFAC today designated Aleksandr Pavlovich Sarkisyan (Sarkisyan), the General Director of AO NTTs REB. Sarkisyan previously worked at Rosoboroneksport OAO, another designated Russian defense firm.

--Rotek Elpom (Rotek), creates the Raven-Black line of stationary and vehicular-mounted security systems that use a combination of acoustic, light, and infrasound technology to impact the nervous systems of its targets. Rotek’s products are used in the aviation and crowd control sectors.

--ZAO NTTs Modul (Modul) produces computer equipment and software. Modul’s products are used in Russia’s aviation and space sectors.

--OOO Valtex-ST (Valtex-ST) procures high technology scientific and industrial equipment on behalf of companies operating in Russia, including quantum optics instrumentation, high-purity gas generators, and electronic microscopy systems.

--OAO Radioavionika (Radioavionika) produces various technological products, including for Russia’s Ministry of Defense. In particular, Radioavionika has developed a command-and-control system used by Russia’s soldiers.

--AO NTTs REB, Rotek, Modul, Valtex-ST, and Radioavionika were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. AO NTTS REB and Radioavionika were additionally designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.

Sarkisyan was designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of AO NTTS REB. Radioavionika is also sanctioned by Canada. (end of excerpt)


Click here for the full statement, on the US Treasury website.

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