Man in Dock Accused of Breaking Hi-Tech Export Controls
A dual Russian and German national has made his first appearance in a US court, after being accused of bypassing technology export controls for the Kremlin.
Arthur Petrov, 33, was extradited from Cyprus after being arrested there on August 26 last year. He’s charged with multiple offenses related to export control violations, smuggling, wire fraud and money laundering, which carry a combined maximum penalty of over 150 years behind bars.
Petrov is said to work for Electrocom, a Russia-based importer of electronics for manufacturers supplying weaponry and equipment to the Russian military.
Along with co-conspirators, he allegedly purchased large quantities of microcontrollers, integrated circuits and other electronics components that are listed on a Commerce Department Control List. The list is designed to ensure that only items that have been granted a license by the department can be exported to Russia.
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However, Petrov is said to have used a network of shell companies and other “deceptive means” to hide the destination of his exports from the US. He apparently bought the items via a Cyprus-based shell company, Astrafteros, and claimed to US exporters that he was purchasing them for ‘fire security systems,’ saying they were bound for Cyprus and other third countries.
In fact, they were destined to be used by Russian arms manufacturers in guided missiles, drones and electronic warfare and communications devices on the battlefield in Ukraine, according to the Department of Justice (DoJ).
It alleged that Petrov and his two co-conspirators bought and shipped to Russia more than $225,000 worth of controlled electronics components with military applications, sometimes via several third countries.
The Cypriot justice minister issued the extradition order on July 18 and Petrov made his first appearance at a federal court on August 9.
“Today’s extradition demonstrates the Justice Department’s enduring commitment to cutting Russia off from the western technologies that fuel President Putin’s war machine,” said deputy attorney general Lisa Monaco.
“Together with global partners, the department’s Disruptive Technology Strike Force and Task Force KleptoCapture will vigorously investigate and prosecute efforts to evade the global sanctions and export controls imposed to counter Russia’s brutal war in Ukraine,” she said. “The defendant’s extradition is a vital step towards holding Russia accountable, and I am grateful to our Cypriot partners for their assistance in this matter.”