US reveals Russian channel for smuggling weapons components to Russia

US law enforcement agencies have detained three Russians with dual citizenship who are accused of organising a large-scale scheme to export goods used for the production of weapons from the United States to Russia.

Source: US Department of Justice

Details: Nikolai Goltsev, 37, of Montreal, Canada, Salimdzhon Nasriddinov, 52, of New York, USA, and Kristina Puzyreva, 32, of Montreal, were charged.

The US Department of Justice stated that the criminal group could have been identified through an investigation that began after US-made sanctioned products were discovered in Russian weapons.

Quote: "Some of the electronic components and integrated circuits shipped by the defendants have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine." 

More details: The schemes for the supply of these components have raised concerns "due to their critical role in the production of advanced Russian precision-guided weapons systems, Russia’s lack of domestic production, and limited global manufacturers."

According to the investigation, the three Russians conspired to smuggle semiconductors, integrated circuits and other dual-use electronic components into Russia

The criminal organisation circumvented US sanctions and laws for a year, managing to send more than 300 consignments of prohibited goods worth about US$10 million to the Russian military.

"As alleged, the defendants evaded sanctions, shipping equipment to Russia vital for their precision-guided weapons systems, some of which has been used on the battlefield in Ukraine," Breon Peace, United States Attorney for the Eastern District of New York, said.

To implement the scheme, the Russians used two legal entities registered in Brooklyn – SH Brothers Inc. and SN Electronics Inc.

These organisations illegally sourced, purchased and delivered millions of dollars worth of dual-use electronics from US manufacturers to sanctioned end users in Russia.

Some of these electronic components and integrated circuits have been found in seized Russian weapons platforms and signals intelligence assets in Ukraine, such as the Torn-MDM radio intelligence system, RB-301B Borisoglebsk-2 electronic warfare station, Izdelie 305E light multipurpose guided missile, L370 Vitebsk anti-aircraft missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs), and T-72B3 battle tanks.

It has been established that Goltsev received orders from Russian end users in the defence and technology sectors seeking to purchase certain products or parts from the United States. 

Goltsev then directly contacted American manufacturers and distributors, usually using assumed names such as Nick Stevens or Gio Ross.

Nasriddinov and Goltsev purchased electronic components from US manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for them to be shipped to various locations in Brooklyn. Nasriddinov and Goltsev then smuggled the goods to various intermediary companies located in other countries, including Türkiye, Hong Kong, India, China and the United Arab Emirates, from where they were forwarded to Russia.

Puzyreva managed numerous bank accounts and conducted financial transactions as part of the scheme.

It has been established that the defendants knew that the exported electronics had potential military applications.

All three are now in custody in the United States.

"With these defendants in U.S. custody, we have disrupted a sophisticated procurement network allegedly used to procure critical technologies for the Russian military’s advanced weapons systems. The Justice Department is committed to imposing accountability and exposing tactics used by hostile nation-states to illicitly acquire items they need to perpetuate their brutal campaigns," said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division.

At the same time, there is a suspicion that the defendants may have been part of a global procurement scheme designed to circumvent US sanctions and export controls.

"This case, once again, shows the willingness of Russia to ignore the laws of the United States, using illegal procurement networks to provide for their military. FBI New York and our partners will hold anyone attempting to procure sanctioned equipment accountable in the criminal justice system in order to protect our national security," said James Smith, Assistant Director-in-Charge, FBI.

Background: 

81% of foreign components of Russian missiles are made in the United States, according to a document released by the Yermak-McFaul sanctions group in June 2023.

Read more on this topic: Russia's military-industrial complex is gaining momentum. Where does the money come from, and who helps Russia produce missiles?

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