Arthur Petrov, a 33-year-old dual Russian and German national, made his initial appearance in federal court today following his extradition from the Republic of Cyprus. Petrov faces charges related to export control violations, smuggling, wire fraud, and money laundering. He is accused of participating in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov was arrested on Aug. 26, 2023, in the Republic of Cyprus at the request of the United States.
“Today’s extradition demonstrates the Justice Department’s enduring commitment to cutting Russia off from the western technologies that fuel President Putin’s war machine,” said Deputy Attorney General Lisa Monaco. “Together with global partners, the Department’s Disruptive Technology Strike Force and Task Force KleptoCapture will vigorously investigate and prosecute efforts to evade the global sanctions and export controls imposed to counter Russia’s brutal war in Ukraine. The defendant’s extradition is a vital step towards holding Russia accountable, and I am grateful to our Cypriot partners for their assistance in this matter.”
“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 G. Olsen of the Justice Department’s National Security Division. “Together with our international law enforcement partners, the Justice Department will now hold Petrov to account in a U.S. courtroom and continue dismantling criminal networks that threaten our collective security.”
“As demonstrated by today’s extradition, just because you’re located overseas doesn’t mean we won’t find you,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “If you procure sensitive U.S. microelectronics with military applications for Russia, you risk the very real threat of facing justice in a U.S. courtroom.”
“Arthur Petrov is alleged to have conspired to smuggle shipments from U.S. distributors of microelectronics with military applications through intermediary countries to Russia as part of an illicit Russian-based procurement network,” said U.S. Attorney Damian Williams for the Southern District of New York. “As alleged, he concealed the ultimate destination of these sensitive materials, and he knew that these transactions and shipments were in violation of U.S. export controls relating to Russia. Thanks to the efforts of our law enforcement partners here and abroad, Petrov is now in U.S. custody and will face justice in a U.S. courtroom."
“The extradition of Arthur Petrov and the allegations laid out in a criminal complaint send a strong message about the resolve and commitment of the FBI and its partners to stop the illegal transfer of sensitive, military-use technology,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch.
According to court documents, Petrov worked for LLC Electrocom VPK (Electrocom), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov and two co-conspirators (CC-1 and CC-2), who are Russian nationals also working for Electrocom, operated an illicit procurement network in Russia and elsewhere overseas.
To perpetrate their scheme, they used shell companies such as Astrafteros Technokosmos LTD (Astrafteros) based in Cyprus which Petrov operates under false pretenses claiming commercial uses while intending them for Electrocom's supply chain serving Russian military needs.
Invoices provided by U.S distributors noted these items were subject specifically under US Export Control List requiring licenses which were bypassed using deceptive means involving multiple third countries before reaching final destination Electrocom based Saint Petersburg.
On August 26th last year arresting authorities detained him pending formal request submission leading subsequent approval Cypriot judicial systems culminating recent transfer where he faces multiple counts potentially severe sentencing penalties if convicted across array offenses including conspiracy defraud ECRA violations smuggling wire fraud money laundering collectively amounting significant punitive repercussions judicial discretion determining final outcomes guided statutory factors sentencing guidelines prevailing legal framework procedural adjudication respective charges brought forth prosecutorial agencies involved case proceedings respectively handling prosecutions coordinating investigative actions enforcing sanctions restrictions aimed curbing unprovoked aggression technological acquisition hostile entities preserving broader security interests allied cooperation underpinning operational mandates specified interagency task forces responsible overseeing implementations strategies thwarting adversarial threats mitigating associated risks safeguarding sovereignty integrity rule law adherence principles underlying international jurisprudence collaborative enforcement paradigms
Assistant U.S Attorney Kevin Sullivan Southern District New York alongside Trial Maria Fedor Counterintelligence Export Control Section prosecuting coordinated through respective task forces mentioned above ensuring accountability deterrence mechanisms operationalized maintaining vigilance addressing emerging challenges posed actors undermining established norms compliance regulatory regimes intended protect national security imperatives promote stability lawful conduct international relations respect mutual obligations partnerships fostering cooperative engagements combating illicit activities endangering collective well-being societies impacted adverse consequences resultant malfeasance disruptive practices
A criminal complaint merely represents allegations presumption innocence applies defendants proven guilty beyond reasonable doubt accordance due process fair trial standards