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Thursday, November 14, 2024

Ukrainian sentenced for role in illegal export scheme involving precision machinery

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Lisa O. Monaco Deputy Attorney General | Official Website

Stanislav Romanyuk, a 39-year-old Ukrainian citizen who last resided in Estonia, has been sentenced to 33 months in prison. This sentence is followed by three years of supervised release for his involvement in an illegal export scheme. Romanyuk attempted to smuggle a dual-use, export-controlled jig grinder to Russia, violating U.S. export laws.

Court documents reveal that starting in 2018, Romanyuk operated Estonia-based BY Trade OÜ and conspired with Latvian citizens Vadims Ananics and Eriks Mamonovs from CNC Weld. They worked with individuals and a company in Russia to smuggle the Connecticut-manufactured 500 Series CPWZ Precision Jig Grinder into Russia.

A jig grinder requires no license for export to European Union countries but does need one for Russia due to its potential use in nuclear proliferation and defense programs. The conspirators did not apply for or possess the necessary license from the U.S. Department of Commerce as required by the Export Control Reform Act of 2018 and the Export Administration Regulations (EAR).

In April 2019, Romanyuk facilitated the sale of the jig grinder from By Trade OÜ to a Russian company using funds wired from Russia. The purchase was made through Sapphire Universal LLP in Latvia, which acquired dual-use items from the U.S. for sale in Russia. CNC Weld was listed as the recipient since no license was needed for exporting to Latvia.

In August 2019, Ananics traveled to Bridgeport, Connecticut, where he claimed CNC Weld was purchasing the jig grinder. In September 2021, Romanyuk falsely informed Estonian authorities about this transaction.

U.S., working with Latvian authorities, intercepted the shipment in Riga before it reached Russia. Approximately $826,000 involved in this purchase were forfeited; some funds were sent to Estonia as aid for Ukraine.

Romanyuk was arrested on June 13, 2022, in Estonia and pleaded guilty on May 23 to international money laundering conspiracy charges. Ananics and Mamonovs also pleaded guilty.

The announcement came from Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division among others involved.

Multiple agencies including Homeland Security Investigations (HSI), FBI, Internal Revenue Service Criminal Investigation alongside Latvian and Estonian authorities contributed to this investigation.

Assistant U.S. Attorneys Konstantin Lantsman and others prosecuted this case under OCDETF's support—focused on disrupting transnational criminal organizations through federal collaboration.

The investigation coordinated via Task Force KleptoCapture aims at enforcing sanctions against Russia following its military invasion of Ukraine as announced by Attorney General on March 2nd last year.

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