Latvian Citizen Faces Charges in the US Over Alleged Illegal Export Scheme

Latvian Citizen Faces Charges in the US Over Alleged Illegal Export Scheme

A Latvian national faces U.S. charges for illegally exporting advanced aircraft technology to Russia, raising concerns about international security and trade law enforcement.

At a Glance

  • Oleg Chistyakov, a Latvian citizen, extradited to the U.S. for illegal export of advanced aircraft technology to Russia
  • Charged with conspiracy, export law violations, smuggling, and money laundering
  • Allegedly worked with two U.S. citizens to facilitate sales to Russian entities, including the FSB
  • Scheme continued despite sanctions imposed after Russia’s invasion of Ukraine
  • Case part of Justice Department’s Task Force KleptoCapture to enforce sanctions against Russia

Latvian National Extradited to Face Serious Charges

Oleg Chistyakov, a Latvian citizen, has been extradited to the United States to face charges related to a complex scheme of illegally exporting advanced U.S.-origin aircraft technology to Russia. Chistyakov appeared in federal court in Kansas City, Kansas, where he was charged with conspiracy, violations of the Export Control Reform Act, smuggling, and money laundering.

The case highlights the ongoing efforts of U.S. law enforcement to crack down on individuals and entities attempting to circumvent export controls and sanctions, particularly those aimed at Russia following its invasion of Ukraine. Chistyakov’s alleged activities not only violated U.S. laws but also potentially compromised national security interests.

The Alleged Scheme and Co-Conspirators

According to the Department of Justice, Chistyakov is accused of conspiring with two U.S. citizens, Cyril Gregory Buyanovsky and Douglas Edward Robertson, to facilitate the sale, repair, and shipment of U.S.-origin avionics equipment for Russian aircraft. The scheme allegedly involved customers on the U.S. Commerce Department’s Entity List, which restricts certain exports to specific foreign entities.

“Chistyakov allegedly acted as a broker for KanRus by soliciting quotes, negotiating prices and terms of delivery and facilitating payments between KanRus and customers in Russia,” the U.S. Department of Justice revealed in a news release.

Buyanovsky and Robertson, who operated the U.S.-based company KanRus Trading Company Inc., have already pleaded guilty and are awaiting sentencing in the fall of 2024. The conspiracy allegedly continued even after the United States imposed additional economic countermeasures against Russia following its invasion of Ukraine in February 2022.

Sophisticated Methods of Evasion

The indictment alleges that Chistyakov, operating from Latvia and through his Emirati company, RosAero FZC, employed sophisticated methods to evade U.S. export laws. These methods included creating false invoices, transshipping items through third-party countries, and using coded language in communications. The scheme involved exporting various advanced avionics equipment, including computer processors, radar sensors, transponders, and speed indicators.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division spoke up about the case, saying, “This arrest is another example of the Justice Department’s unwavering mission to hold accountable those who enable Russian aggression, including those involved in facilitation networks that fuel the Russian war effort.”

The investigation revealed that payments for these illegal transactions came from foreign bank accounts in countries such as Kazakhstan, Kyrgyzstan, and the United Arab Emirates, further complicating the money trail and making detection more challenging for authorities.

International Cooperation and Consequences

The successful extradition of Chistyakov underscores the importance of international cooperation in combating complex, cross-border crimes. The Justice Department’s Office of International Affairs worked closely with Latvian authorities to secure Chistyakov’s extradition, demonstrating the global reach of U.S. law enforcement when it comes to national security matters.

“It doesn’t matter if you’re in Kansas or in Latvia — if you violate American law, you risk facing American justice,” Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement said. He added that they would keep working with authorities around the world to “pursue those who seek to send military-grade aerospace equipment to support the Russian military.”

If convicted, Chistyakov faces severe penalties, including up to 20 years in prison and fines of up to $1 million. The case serves as a stark reminder of the risks involved in attempting to circumvent U.S. export controls and sanctions, especially those aimed at protecting national security interests and countering adversarial nations.

Sources

  1. Latvian man extradited to Kansas to face charges in Russian illegal avionics export scheme
  2. Latvian Broker Arrested for Allegedly Smuggling Advanced U.S. Aircraft Technology to Russia
  3. Latvian citizen charged by U.S. with supplying advanced avionics to Russia