The U.S. Justice Department has taken a significant step in its ongoing efforts to enforce economic sanctions against the Russian Federation by lodging a forfeiture action against a Boeing 737-800 aeroplane landing gear set. This landing gear was detained by U.S. Customs and Border Patrol at Miami International Airport in September 2023. This action underscores the U.S. government’s commitment to upholding its economic sanctions and preventing their circumvention.
The Transaction and the Violation
The landing gear, valued at $1.55 million, was purchased by a transhipper based in the Kyrgyz Republic. This transhipper specializes in dual-use items and services in the Russian Federation. The purchase of the landing gear violated U.S. economic sanctions, highlighting the lengths to which entities will go to evade these sanctions.
In June 2023, the landing gear was sold by a Florida-based aircraft parts overhaul and reseller to an intermediary in Istanbul, GQ Solution Elektronik Ekipman Limited Sirketi. This transaction is now under scrutiny due to recent sanctions imposed by the U.S. State Department on companies operating in the technological sector of Russia, such as GQ Solution Elektronik Ekipman Limited Sirketi.
United States Files Forfeiture Action Against $1.55 Million Aircraft Landing Gear
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— National Security Division, U.S. Dept of Justice (@DOJNatSec) May 1, 2024
These sanctions were announced concurrently with the forfeiture action and are in response to the company’s supply of electronic components to Russia-based companies. This highlights the U.S. government’s proactive approach to identifying and penalizing entities that violate its economic sanctions.
The Designation of RMDD
LLC RM Design and Development (RMDD) was classified as a Specially Designated National (SDN) by the Treasury Department’s Office of Foreign Assets Control (OFAC) in July 2023 to operate in the Russian Federation’s electronics industry. RMDD was established in March 2022, less than a month following the Russian invasion of Ukraine.
OFAC characterized RMDD as a “prolific shipper of dual-use goods to Russia, including to firms that have supplied electronics to Russia-based defense companies.” All of RMDD’s assets and interests in assets located in the United States are blocked as a result of the company’s designation as an SDN.
This designation underscores the U.S. government’s commitment to penalizing entities that support the Russian Federation’s economy, particularly those that operate in sensitive sectors like electronics.
The Detention of the Aircraft Landing Gear
On September 1, 2023, U.S. Customs and Border Protection (CBP) detained the landing gear shipment at Miami International Airport, alerting the shipper of the action. This detention demonstrates the vigilance of U.S. authorities in enforcing sanctions and preventing the export of sensitive goods to sanctioned entities.
The Larger Investigation
The coordinated effort by the US government to impose export controls and economic sanctions on the Russian Federation in the wake of the invasion of Ukraine includes this forfeiture action. It is crucial to remember that the forfeiture complaint described above is only an accusation. Leading the broader probe into the Russian Federation’s efforts to evade U.S. economic sanctions and export controls are the Bureau of Industry and Security of the Commerce Department and HSI Colorado Springs. The U.S. government’s determination to hold organizations responsible for their deeds and to stop them from evading its penalties is demonstrated by this inquiry.
The Task Force KleptoCapture
The Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing economic sanctions, export restrictions, and economic countermeasures in response to Russia’s military invasion of Ukraine, is in charge of coordinating this case.
Unveiled by the Attorney General on March 2, 2022, the task force will continue to utilize all of the department’s resources to counter attempts to sidestep or undermine the coordinated measures taken by the US government in response to Russian military aggression. Led by the Office of the Deputy Attorney General, the creation and activities of this task group demonstrate the commitment of the US government to a coordinated and all-encompassing response to Russian military aggression.
The Burden of Proof
In forfeiture proceedings, the burden to prove forfeitability is upon the government. This means that the government must provide sufficient evidence to support its claim that the property is subject to forfeiture. The outcome of this case will be closely watched by all parties involved and could have significant implications for future economic sanctions enforcement actions. It underscores the importance of due process in such proceedings and the need for the government to substantiate its allegations.
