Bloomberg— Two Russian citizens were arrested and another is accused of evading US sanctions for smuggling military technology from the country, parts used in Ukraine, as well as Venezuelan oil.

Yury Orekhov, co-owner and CEO of Hamburg-based Nord-Deutsche Industrieanlagenbau (NDA), and Artem Uss, another NDA co-owner, were among five Russian nationals and two Venezuelan oil traders publicly indicted on Thursday. Wednesday in federal court in Brooklyn, New York. The two were arrested Monday in Germany and Italy.

According to the indictment, many illegal oil transactions were carried out with Russian aluminum companies controlled by billionaire oligarchs who previously worked as Orekhov’s purchasing director. Someone familiar with this matter he said the company was Rusal, now part of EN+ Group International, of which Oleg Deripaska is the largest shareholder.

“As alleged, the defendants were criminal backers of the oligarchs, orchestrating complex schemes to illegally obtain US military technology and Venezuelan-approved oil through a myriad of transactions involving shell companies and cryptocurrencies,” said Brooklyn American prosecutor Breon Peace. , in a statement. “Their efforts undermine security, economic stability and the rule of law around the world.”

The US alleges that Orekhov and Uss used NDAs as a cover to purchase sensitive and dual-use military technology from US manufacturers, including advanced semiconductors and microprocessors used in fighter jets, missile systems, smart munitions, satellites, and other military applications. . According to the US, the items were then sent to Russia, and some of the same technology was found in Russian weapons seized in Ukraine.

‘Disneyland’

Orekhov and Uss are also suspected of using NDAs to smuggle hundreds of millions of barrels of oil from Venezuela to Russian and Chinese buyers, including Rusal and the world’s largest oil, gas and petrochemical refining conglomerate based in Beijing. The two Venezuelans accused in the case are suspected of intervening in an oil deal between the NDA and Petroleos de Venezuela SA, the state-owned oil company, using shell companies to disguise the transaction.

Venezuelan oil was sanctioned by the United States in 2019, which prevented it from accessing many American and European refineries. Venezuela responded by increasing sales to China, but the government of President Nicolás Maduro faces the challenge of avoiding a possible embargo by the United States on the tanker’s 50-day voyage to Asia.

In some cases, PDVSA concealed the origin of the oil by falsifying ship documents and painting names. According to the indictment unveiled on Wednesday, Orekhov was warned that oil tankers leaving Venezuela turned off their GPS trackers in international waters to disguise the ship’s stop in a country they codenamed “Disneyland.”

In a communication with one of the Venezuelan traders named in the indictment, Orekhov allegedly admitted that he was acting on behalf of the sanctioned Russian oligarch, saying, “He is also under sanctions. That’s why we act from this company [NDA GmbH]. as a facade.

Deripaska, who was sanctioned in 2018 for Russia’s actions in Ukraine, was indicted by US prosecutors last month over his attempts to have his two children born in Los Angeles. The British oligarch’s property manager was also indicted last week for helping his boss violate US sanctions.

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