OFAC Targets Russian Military Technology Procurement Network
In coordination with DOJ and the FBI, the Office of Foreign Assets Control has added one individual and two organizations to its Specially Designated Nationals list, according to an Oct. 19 notice.
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Yury Yuryevich Orekhov and two of his companies, NDA GmbH and Opus Energy Trading, allegedly procured military and sensitive dual-use technologies from U.S. manufacturers for Russian end-users. The products included advanced semiconductors and microprocessors used in fighter aircraft, ballistic and hypersonic missile systems, smart munitions, radar, satellites and other military applications, OFAC said. Orekhov and NDA GmbH ultimately sent these items to Russian end-users, including entities on the Buruea of Industry and Security’s Entity List, in violation of U.S. export controls. U.S. components that Orekhov procured have reportedly been found in Russian weapons platforms in Ukraine.
The designation builds upon last week’s meeting of top officials from 33 countries to discuss the effects of international sanctions and export controls on Russia’s military-industrial complex and critical defense supply chains, OFAC said (see 2210140043).
“Thanks to the unprecedented sanctions and export controls imposed by our broad coalition of partners and allies, Russia has increasingly struggled to secure critical inputs and technologies needed for its brutal war against Ukraine,” Deputy Secretary of the Treasury Wally Adeyemo said in an Oct. 19 press release. “We know these efforts are having a direct effect on the battlefield, as Russia’s desperation has led them to turn to inferior suppliers and outdated equipment. That’s why we will continue to take every opportunity to crack down on evasion of these sanctions and export controls across the globe.”