Russian citizen convicted in US for purchasing military-grade microelectronics for Russia
Maxim Marchenko, a Russian citizen, has been sentenced to three years in a US prison for his involvement in a foreign procurement network which illegally obtained large quantities of military-grade dual-purpose OLED microdisplays for end users in Russia following Russia's invasion of Ukraine.
Source: US Attorney's Office
Details: Marchenko pleaded guilty to money laundering and smuggling charges in February 2024.
The US prosecutors stated that Marchenko resided in Hong Kong and operated several shell companies there, including Alice Components Co. Ltd. (Alice Components), Neway Technologies Limited (Neway) and RG Solutions Limited (RG Solutions). He and two co-conspirators, who are also Russian nationals, operated a network of illegal procurements in Russia, Hong Kong and other countries.
This procurement network fraudulently obtained large quantities of military-grade dual-use microelectronics, including OLED microdisplays, from US distributors.
The scheme involved Marchenko and his accomplices using shell companies and other fraudulent means to conceal from US government agencies and US distributors that the OLED microdisplays were destined for Russia.
The illicitly acquired technology can be used in scopes, night vision goggles, thermal optics and other weapons systems.
In addition to the prison sentence, Marchenko, 52, has been sentenced to three years of post-sentence supervision.
Background:
- The Russian Kh-101 missile that destroyed the Okhmatdyt children's hospital in Kyiv contained Western-made parts, experts and Ukrainian officials say, which indicates the Kremlin's success in circumventing sanctions.
- Among the Kh-101’s Western-made components, two were manufactured by Swiss company STMicroelectronics, headquartered in Switzerland, while the rest were made by American chip manufacturers, including Texas Instruments, Analog Devices, and Intel.
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