Financial Crime World

Russia’s Electronics Industry Receives Boost from Ostec Group Suppliers

Despite US sanctions, several companies have been quietly supplying the Russian electronics industry with crucial equipment and technology. The Ostec Group, a construction company specializing in production facilities for the electronics sector, has become a major recipient of goods.

Companies Involved in Sanctions Evasion

Kazakhstan-Based KBR Tekhnologii TOO (KBR Tekhnologii)

  • Made hundreds of shipments to Fabcenter, Ostec-Arttool Ltd, and other entities within the Ostec Group
  • Co-founder linked to Evgueni Kostiouk, a longtime employee of U.S.-designated Inter-Trans Spolka z Ograniczona Odpowiedzialnoscia

Turkey-Based Alptech Makina Sanayi Limited Sirketi (Alptech)

  • Made significant shipments to Fabcenter and other Ostec Group entities
  • Established in 2022, sparking concerns about their involvement in the Russian electronics industry

Hong Kong-Based New Horizons Trading Limited (New Horizons)

  • Made significant shipments to Fabcenter and other Ostec Group entities
  • Established in 2022, sparking concerns about their involvement in the Russian electronics industry

Companies Designated by US Treasury Department’s Office of Foreign Assets Control (OFAC)

Russia-Based Kseoprom, Niceberg Limited Liability Company (Niceberg), and Powertech Limited Liability Company (Powertech)

  • Received shipments from KBR Tekhnologii, Alptech, and New Horizons
  • Designated by OFAC for operating in the Russian manufacturing sector

DP Microchip Network

DP Microchip LLC, a Russia-based company that imports electronic components, was found to have collaborated with multiple U.S.-designated entities in Russia. The company procured electronic components from outside of Russia with the help of:

  • Turkey’s Platform Endustriyel Gida Insaat Elektronik Ve Madencilik Dis Ticaret Limited Sirketi (Platform Endustriyel)
  • Onyad Bilgisayar Ticaret Limited Sirketi (Onyad Bilgisayar)
  • PRC-based Yiwu Xinglu Import and Export Co Ltd (Yiwu Xinglu)

These companies were designated by OFAC for operating in the Russian technology sector.

AK Microtech’s PRC Intermediaries

AK Microtech, a Russia-based company specializing in transferring foreign semiconductor technology to Russian microelectronics production companies, has been involved in several schemes to evade US sanctions. The company’s owner and director, Andrei Rostislavovich Khokhlun (Khokhlun), was designated by OFAC along with another Russia-based company owned by him, Limited Liability Company Keko R.

PRC-based Hangzhou Keming Intelligent Technology Co Ltd (HKIT) has made dozens of shipments to AKM as well as shipments to Keko R. The shipments have included technology such as film used in the production of electronic components.

Conclusion

The investigations have revealed a complex web of relationships between companies involved in the Russian electronics industry, highlighting the need for increased vigilance and scrutiny to prevent further sanctions evasion schemes. The US Treasury Department’s Office of Foreign Assets Control will continue to monitor these entities and take action against those found to be violating sanctions.