NYC Gazette

Damian Williams, the United States Attorney for the Southern District of New York; Lisa Monaco, the Deputy Attorney General of the United States; Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Matthew S. Axelrod, the Assistant Secretary for Export Enforcement of the Commerce Department, announced today that Arthur Petrov, a dual Russian and German national, was extradited from the Republic of Cyprus after being charged with export control violations, smuggling, wire fraud, and money laundering offenses. These charges are connected to his alleged involvement in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier.

Petrov was arrested on August 26, 2023, in Cyprus at the request of U.S. authorities. He arrived in New York yesterday and will be presented later today before U.S. Magistrate Judge Jennifer E. Willis.

U.S. Attorney Damian Williams stated: “Arthur Petrov is charged with conspiring to smuggle microelectronics with military applications from U.S. distributors to Russia as part of an illicit Russian-based procurement network that supplies manufacturers for the Russian military." He added that Petrov concealed these transactions' ultimate destination despite knowing they violated U.S. export controls relating to Russia.

Deputy Attorney General Lisa Monaco emphasized: “Today’s extradition demonstrates the Justice Department’s enduring commitment to cutting Russia off from western technologies that fuel President Putin’s war machine.” She also highlighted cooperation with global partners in prosecuting efforts to evade sanctions and export controls imposed due to Russia's actions in Ukraine.

Assistant Attorney General Matthew G. Olsen commented: “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.”

Acting Assistant Director Christie M. Curtis remarked: “Arthur Petrov was brought to the United States to answer for allegedly participating in a global procurement scheme which secretly supplied Russia’s military industrial complex with critical U.S. technology.”

Assistant Secretary for Export Enforcement Matthew S. Axelrod noted: “As demonstrated by today’s extradition, just because you’re located overseas doesn’t mean we won’t find you.”

According to allegations contained in court documents:

Petrov worked for LLC Electrocom VPK (“Electrocom”), a supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Alongside two co-conspirators ("CC-1" and "CC-2"), he operated an illicit procurement network using shell companies and deceptive means to conceal that electronics components were destined for Russia.

Petrov used a Cyprus-based shell company called Astrafteros Technokosmos LTD (“Astrafteros”) to acquire controlled microelectronics from U.S.-based exporters by falsely representing their end use and destination.

During this conspiracy, Petrov procured more than $225,000 worth of controlled electronics components with significant military applications from U.S. distributors and shipped them covertly through third countries back to Electrocom in Saint Petersburg, Russia.

On August 26, 2023, Cypriot authorities arrested Petrov at the request of U.S., leading up to his formal extradition on July 18, 2024.

Petrov faces multiple charges including conspiracy to defraud the U.S., violating export controls under ECRA (Export Control Reform Act), smuggling goods from the U.S., wire fraud conspiracy, and money laundering conspiracy — each carrying substantial maximum prison sentences if convicted.

The investigation involved multiple agencies including FBI's New York Field Office Counterintelligence Division and international partners such as Cypriot authorities who assisted in arresting Petrov.

This prosecution is coordinated through Task Force KleptoCapture and Disruptive Technology Strike Force aimed at enforcing sanctions against Russia following its invasion of Ukraine.

The case is handled by Kevin Sullivan from National Security Unit with assistance from Maria Fedor from Counterintelligence Section.

The charges are accusations; defendants are presumed innocent until proven guilty.