Financial Crime World

Breaking: Russian Defense Establishment Receives Drone Technology from KVAND IS OOO

In a significant escalation in Russia’s military capabilities, the Russian defense establishment has received drone technology from KVAND IS OOO, a company co-owned by Siarhei Tytsyk.

Background Information

KVAND IS OOO has been marketing Russian UAVs with offensive capabilities, including weapons systems and missiles, to an African country. The company was designated pursuant to Executive Order (E.O.) 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.

Designations

Siarhei Tytsyk, the co-owner and director of KVAND IS OOO, was also designated under E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of the company.

Implications

The shipment of drone technology to Russia comes as a surprise, given the country’s ongoing military aggression in Ukraine and its alleged involvement in sanctions evasion schemes. The move is seen as a significant boost to Russia’s military capabilities and could potentially be used to further destabilize the region.

In related news, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated several entities for their role in assisting or supporting Russian companies involved in the production of drone technology:

  • Fabcenter LLC: A construction company that specializes in designing and constructing production facilities and cleanrooms for the electronics industry.
  • KBR Tekhnologii TOO: A Kazakhstan-based company that has made hundreds of shipments to Fabcenter and other designated entities.
  • Alptech Makina Sanayi Limited Sirketi: A Türkiye- based company that has made dozens of shipments to Fabcenter and Ostec-Arttool Ltd.
  • New Horizons Trading Limited: A Hong Kong-based company that has made dozens of shipments to Fabcenter and Ostec-Arttool Ltd.

These designations are part of the US government’s efforts to prevent Russia from acquiring sensitive technology and equipment that could be used to further its military ambitions.