March 29 (UPI) — Authorities in Latvia have arrested a 55-year-old man accused in the United States of participating in a multiyear scheme to illegally export aviation components to Russian companies amid the Kremlin’s war in Ukraine.
The suspect, Oleg Chistyakov, is the third person to be implicated in the conspiracy that prosecutors said in a 26-count superseding indictment unsealed Thursday began in October of 2020 and ran until March of 2023.
Prosecutors said the scheme was centered in the Kansas-based KanRus Trading Company whose U.S. owners Cyril Gregory Buyanovsky and Douglas Edward Robertson would repair, sell and ship U.S. avionics equipment to consumers in Russia and elsewhere that operate Russian-built aircraft, including the Kremlin’s principal security agency, the Federal Security Service.
According to the court document, Buyanovsky and Robertson concealed the final destinations of their products by misstating the true end users, value and customers by creating false invoices, submitting false information on export documents and failing to file required export paper work.
They also worked with intermediaries, such as Chistyakov, to ship product to third-party countries, including Germany, the United Arab Emirates, Cyprus and Armenia, where the goods would again be re-exported to their final destination.
Prosecutors accuse the trio of continuing to export their products to Russia even after the Kremlin launched its invasion of Ukraine on Feb. 24, 2022, and after the United States imposed sanctions to prevent U.S. technology from being used by Russia in its war.
In December 2023, the U.S. Department Commerce added several Russian companies to its Entity List, imposing stringent restrictions on them over Russia’s involvement in the war. On that list are some companies that were involved in the alleged export scheme, prosecutors said.
Chistyakov was arrested March 19 near Riga in his native country and remains in Latvian custody pending extradition to the United States.
“As alleged, Mr. Chistyakov facilitated hundreds of thousands of dollars in illicit transactions to funnel sophisticated U.S. aerospace technology to companies in Russia,” Assistant Attorney General Matthew Olsen of the Justice Department’s National Security Division said in a statement.
“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.”
He has been charged with one count of conspiracy, two counts of violation of the Export Control Reform Act and multiple smuggling and money laundering counts.
If convicted, Chistyakov faces a maximum penalty of five years in prison for conspiracy, 20 years in prison for each export count, 10 years in prison for each smuggling count and 20 years in prison for each money laundering count.
Buyanovsky pleaded guilty in December, and agreed to forfeit more than $450,000 worth of avionics equipment and $50,000 in a personal judgement.
Robertson has pleaded not guilty and is awaiting trial.
The investigation was conducted by the Justice Department’s Task Force KleptoCapture, which was launched in March of 2022 to fight efforts to evade sanctions placed on Russia.
Last month, Deputy Attorney General Lisa Monaco said in the two years of the task force, it has restrained, seized and obtained judgements to forfeit nearly $700 million in assents from “Russian enablers” and charged more than 70 people for violating international sanctions and export controls.