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Russia’s Defense Establishment Receives Shipped Drone Technology
In a significant development, the Russian defense establishment has received shipments of advanced drone technology from a Bulgaria-based UAV manufacturer, Freshvale EOOD. The company marketed Russian-made UAVs with offensive capabilities, including weapons systems and missiles, to an African country.
Facilitation by KVAND IS OOO
The shipment is believed to have been facilitated by KVAND IS OOO, a Russia-based company co-owned and directed by Siarhei Tytsyk. Both Freshvale EOOD and KVAND IS OOO were designated by the US Office of Foreign Assets Control (OFAC) for operating in the defense sector of the Russian Federation economy.
Ostec Group’s Sanctions Evasion Network
The OFAC has also sanctioned entities comprising the Ostec Group, a Russian technology consortium and military contractor that supports Russian producers of various missile systems and aerial bombs. The group was designated for operating in the defense sector of the Russian Federation economy.
- Suppliers have shifted their shipments to Fabcenter LLC, a Russia-based construction company
- Fabcenter LLC has received hundreds of shipments from various suppliers, including Kazakhstan-based KBR Tekhnologii TOO and Turkey-based Alptech Makina Sanayi Limited Sirketi
DP Microchip Network
Another sanctioned entity is Design Partner Microchip LLC (DP Microchip), a Russia-based company that imports electronic components, including high-priority Harmonized System (HS) code goods. DP Microchip has collaborated with multiple US-designated entities in Russia to procure electronic components from outside of Russia.
- The company has received shipments of integrated circuits and other electronics from various suppliers, including Turkey-based Platform Endustriyel Gida Insaat Elektronik Ve Madencilik Dis Ticaret Limited Sirketi and Hong Kong-based Yiwu Xinglu Import and Export Co Ltd
AK Microtech’s PRC Intermediaries
The OFAC has also designated AK Microtech, a Russia-based company that specializes in transferring foreign semiconductor technology to Russian microelectronics production companies. The company is owned by Andrei Rostislavovich Khokhlun, who was also designated for his role in the sanctions evasion scheme.
- AK Microtech has received shipments of technology from various suppliers, including PRC-based Hangzhou Keming Intelligent Technology Co Ltd and Shenzhen C S Im Export Ltd
- The company has also used Hong Kong-based Way Good Technology Limited to acquire goods and evade sanctions
Designations as a Significant Blow
In a separate development, the OFAC has designated Ting Chen, the managing director and owner of Shenzhen CSI, for his role in the sanctions evasion scheme. Chen is also affiliated with Kekotech Equipment Limited, which was designated for having materially assisted AK Microtech’s efforts to evade sanctions.
The designations are seen as a significant blow to Russia’s defense establishment and its efforts to circumvent international sanctions. The move is likely to further isolate Russia from the global community and increase pressure on the country to comply with international law.