The US Department of Commerce announced that the California company “Integra Technologies“ has reached an out-of-court settlement for the illegal export of transistors and other products that can be used in radar and avionics systems, BTA reports.
Between February and October 2023, the company sent 94 shipments worth a total of $6.67 million to eight Russian customers. This violation occurred despite strict export restrictions imposed by the United States following Russia's invasion of Ukraine.
Sanctions and Terms of Settlement
As part of the settlement, „Integra“ agreed to pay a fine of $3.3 million. The Department of Commerce has ordered $1.5 million of the penalty to be suspended because the company voluntarily disclosed the violations and cooperated with authorities.
Export Control Violations
According to John Sonderman, Director of the Office of Export Controls, the „Integra“ case is indicative of the challenges facing export control enforcement.
„The company failed to monitor and implement updates to export controls. This is critically important, especially in light of the expanding restrictions on Russia in light of the war in Ukraine,” Sonderman commented.
History of Export Restrictions
As early as February 2022, following the beginning of the Russian invasion, the United States introduced extensive export controls to Russia. In February 2023, the restrictions were tightened further, including specific controls on transistors, which play an important role in the military industry.
The Department of Commerce emphasizes that American companies wishing to do business with Russia have a responsibility to monitor any changes in the rules and ensure their compliance.
This case underscores the United States’ firm stance on export controls to Russia. At the same time, it serves as a warning to other companies that violations related to technology transfer to Russia will be severely punished, including due to the consequences for international security.