Russians and Italians, charged for attempt to evade U.S. sanctions
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U.S. federal prosecutors have charged Russian, Italian and U.S. companies and several employees for allegedly trying to evade U.S. sanctions by providing a U.S.-manufactured power turbine to a Russian state-controlled business, the U.S. Justice Department announced.
The unidentified Russian company was barred from acquiring the turbine under U.S. sanctions imposed after Russia’s annexation of Crimea in 2014. But it contracted Oleg Vladislavovich Nikitin and his Russian-based company KS Engineering (KSE) to buy it for $17.3 million (£13.48 million), according to a Justice Department statement.
Nikitin, KSE and KSE employee Anton Cheremukhin were charged with violating and conspiring to violate the International Emergency Economic Powers Act and Export Control Reform Act (IEEPA/ECRA) and conspiracy to commit wire fraud and money laundering.
According to the statement, Nikitin, Cheremukhin and KSE sought to evade U.S. sanctions by hiring Gabriele Villone, his Italian-based company GVA International Oil and Gas Services and employee Bruno Caparini to acquire the turbine on their behalf.
Nikitin, Cheremukhin, Villone and Caparini face a maximum sentence of 20 years in prison and a $1 million fine on the charge of violating IEEPA/ECRA and a maximum of five years in prison and a $250,000 fine for conspiracy to violate IEEPA/ECRA and to defraud the United States.
They and Bagrou also face a maximum of 20 years in prison and a $500,000 fine on the charges of conspiracy to commit wire fraud and conspiracy to launder monetary instruments.
