US sanctiones Turkish, Hungarian companies due to co-operation with Russia

US Treasury Department Deputy Secretary Wali Adeyemo said that imposing sanctions represents a continuation of commitments made by US President Joseph Biden and G7 colleagues to cut off the supply chains and payment channels of Russia's military-industrial complex.

Now, for the first time, a Hungarian company has also been found under sanctions. For the needs of Sukhoi aircraft manufacturer and via Russian company Exiton, the Hungarian company Matrix Metal sent integrated electronic keys to Russia. Also, the Hungarian company sends numerous electronic components to Russians via a mediator in Cyprus, writes abcnews.

Sanctions imply freezing assets and funds in the US, which includes companies that are owned by majority or entirely by designated individuals. As reported in Washington, the Treasury Department is aiming at a number of <x0 sub-transitional networks”, including those involved in procurement of ammunition and military equipment for Russia, telegraphy broadcast.

More common forms of the avoidance of sanctions and the assistance of Russia's military-industrial complex are procurement for Russian oligarchs through offline companies, then providing services for the establishment of companies, evasion of sanctions by IT sector companies, cleaning up Russian oligarch gold, and, most importantly, procurement of advanced machinery and electronic components.

In explaining the decision on sanctions in “ammunition procurement”, Italian national Giulia Soflietti and Turkish national Hajiri Tahirbeyoglu are cited as persons involved in the supply with Russia.

The software was involved in a weapons procurement, ammunition and ammunition network worth more than $150m. Tahirbeyoglu has been the mediator in the deal while he is chairman of the Turkish company's Steering Board for ammunition, weapons and military material, “Taha Savunma”.

Soflietti, according to claims by the US Treasury Department, has also worked on procurement of microelectrics and chips for the last Russian-based users.

More than 200 shipments of cargo with dual intentions (civil products that could be used for military purposes) arrived in Russia via Turkey for Promtek company, which deals with network and aircraft cables and electronic connections.

It is also interesting that two Turkish companies supplied Russia with tools that can be used in weapons production. The Turkish company Hidropark, which sells plumbing and pneumatic equipment, supplied CNC (for accurate cutting of various materials) to partners in Russia. The value of the delivery equipment is more than 800 thousand dollars, which exceeds the company's annual revenues.

Also, the Turkish company Feva sent CNC vehicles to Russia and had more than 500 total remittances. This company was established after the war began in Ukraine in April 2022.

Russian citizen Yevgeny Petrov founded several companies in Turkey, which, according to the US Treasury Department, are used to pay off goods sent to Russia and also have links to security structures in Moscow.

As the most common way to supply Russia with raw materials for the military industry, Americans cite Russian civil companies, institutes and research centres. Of the location of companies used to bypass sanctions imposed on Russia by the West, the most mentioned are Hong Kong, Emirates and China.