More Russian Components Charges

Two Russian nationals were charged Thursday for export control violations, smuggling, wire fraud, and money laundering in connection with a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.

Zhanna Soldatenkova and Ruslan Almetova, worked for LLC Electrocom VPK, along with along with Arthur Petrov who was arrested and extradited from Cyprus to the US in August. [12630]

The technology that the defendants procured in contravention of export controls had significant military applications and included various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.

To perpetrate the scheme, Petrov first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (“Astrafteros”), which he operated.

Petrov procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact the components were destined for Electrocom in Russia.

The microelectronics that Petrov procured as part of the conspiracy included, among other things, microcontrollers and integrated circuits on the Commerce Control List maintained by the Commerce Department and which could not lawfully be exported or reexported to Russia without a license from the Commerce Department. 

Invoices provided to Petrov by the U.S. distributors expressly noted that these microcontrollers and integrated circuits were subject to U.S. export controls.

To evade these controls, Petrov, Soldatenkova, and Almetov worked together to transship the controlled items procured by Petrov using pass-through entities operated by Soldatenkova, and Almetov in third countries. 

Soldatenkova, and Almetov then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia. 

At all times, the three concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia. 

During the course of the conspiracy, Petrov, Soldatenkova, and Almetov procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.

 The case was investigated by the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the Bureau of Industry and Security of the Department of Commerce.  Futher assistance came from the FBI’s Legal Attaché offices in Poland, Germany, and Athens, Greece; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; the Department of Justice’s Office of International Affairs; the Republic of Cyprus Ministry of Justice and Public Order; and the Law Office of the Republic for their assistance.  The Republic of Cyprus National Police also provided critical assistance in effecting the defendant’s arrest and detention at the request of the U.S.

The indictment can be read here.