A dual Russian-German citizen has been ordered held without bail in New York City on charges that he conspired to smuggle U.S. microelectronics to military manufacturers in Russia to aid its war in Ukraine.
Arthur Petrov, 33, made a brief appearance in federal court on August 9, the U.S. Justice Department said in a news release. The department said the charges against him included export-control violations, smuggling, wire fraud, and money laundering.
Petrov's lawyer declined to comment on the numerous charges brought against his client, which collectively carry a potential penalty of over 150 years in prison, according to AP.
Petrov was arrested in Cyprus at the request of the United States and was extradited on August 8.
"Our charges allege that, after Russia's full-scale invasion of Ukraine, the defendant and his co-conspirators formed an elaborate tech-trafficking syndicate to supply microelectronics to Russia's military-industrial complex," said Assistant Attorney General Matthew Olsen of the Justice Department’s National Security Division.
U.S. Attorney Damian Williams added in the statement that Petrov concealed where he was sending the electronics and knew that shipping them violated U.S. export controls relating to Russia.
Deputy Attorney General Lisa Monaco said the extradition reflected the Justice Department's determination to cut Russia off from the Western technologies that fuel the Russian military.
Court documents quoted in the statement say Petrov worked for LLC Electrocom VPK, a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov and two co-conspirators, who are identified only as Russian nationals also working for Electrocom, operated an illicit procurement network in Russia and elsewhere overseas.
"They fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom," the Justice Department said.
They used shell companies and other deceptive means to conceal that the electronics components were destined for Russia, the department said. The technology they procured has significant military applications, including in Russian guided missiles, drones, and electronic-warfare and communications devices, it added.
Authorities said Petrov falsely claimed that he was purchasing the items for fire-security systems and other commercial uses for companies in Cyprus and countries other than Russia.