Two Russian nationals were arrested and several other people charged in a broad sanctions-evasion scheme to smuggle US military technology — some of which was used in Ukraine — and Venezuelan oil.
Yury Orekhov, co-owner and chief executive of Nord-Deutsche Industrieanlagenbau (NDA) in Hamburg was arrested on Monday in Germany, and Artem Uss, the other co-owner of NDA, was arrested in Italy.
Mr Orekhov and Mr Uss were among five Russian nationals and two Venezuelan oil traders charged in an indictment unsealed on Wednesday in Federal Court in Brooklyn, New York.
“As alleged, the defendants were criminal enablers for oligarchs, orchestrating a complex scheme to unlawfully obtain US military technology and Venezuelan sanctioned oil through a myriad of transactions involving shell companies and cryptocurrency,” Brooklyn US Attorney Breon Peace said.
“Their efforts undermined security, economic stability and rule of law around the world.”
The US alleges Mr Orkehov and Mr Uss used NDA as a front to buy sensitive military and dual-use technology from US makers, including advanced semiconductors and microprocessors used in fighter aircraft, missile systems, smart munitions, satellites and other military applications.
According to the US, the items were then shipped to Russia, and some of the same technology was found in Russian weapons seized in Ukraine.
Mr Orekhov and Mr Uss also allegedly used NDA to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese buyers.
They included a Russian aluminium company controlled by an oligarch who is under US sanctions, and the world’s largest oil refining, gas and petrochemical conglomerate, based in Beijing.
The two Venezuelans charged in the case allegedly brokered deals for the oil between NDA and Petroleos de Venezuela, the state-owned oil company, using shell companies to disguise the transactions.
In a communication with one of the Venezuelan traders in the indictment, Mr Orekhov allegedly admitted that he was acting on behalf of a sanctioned Russian oligarch, saying: “He is under sanctions as well. That’s why we [are] acting from this company [NDA]. As fronting.”
