2 men tried to illegally smuggle snowmachines from U.S. to Russia, feds say

S. Lane Tucker, U.S. Attorney for nan District of Alaska, speaks astatine a January 2024 property conference. (Wesley Early/Alaska Public Media)

Two Russian-born American citizens are accused of attempting to nonstop almost $500,000 worthy of snowmachines from nan U.S. to Russia via China, evading U.S. export controls during Russia’s ongoing penetration of Ukraine.

A national indictment against Anchorage resident Sergey Nefedov, 40, and Mark Shumovich, 35, of Bellevue, Wash. was announced Wednesday by U.S. Attorney for Alaska S. Lane Tucker’s office. All 17 snowmachines progressive successful nan strategy were seized by U.S. authorities.

Word of nan lawsuit came conscionable hours aft nan U.S. State Department unveiled sanctions against much than 300 group and entities accused of helping Russia’s warfare effort, immoderate by sending “dual-use” items for illustration engines and electronics recovered successful civilian equipment that tin beryllium repurposed to make subject weapons. Western components proceed to beryllium recovered successful weapons Russia has utilized to onslaught Ukraine, including attack helicopters, air-defense systems and cruise missiles.

“Imports from (China) are filling captious gaps successful Russia’s defense accumulation rhythm to nutrient weapons, ramp up defense production, and bolster its military-industrial base,” State Department officials said successful nan sanctions announcement.

RELATED: Alaska an important Special Operations training ground, arsenic Arctic sees liking from Russia and China

Prosecutors said Nefedov and Shumovich were arrested Tuesday successful Alaska and Washington, respectively. They look a twelve national counts including conspiracy, violating export regulations, smuggling equipment from nan U.S. and world money laundering.

“Violations of export laws transportation important consequences for perpetrators successful nan U.S. and abroad,” Tucker said successful Wednesday’s statement, pledging to activity pinch different national agencies connected nan case.

A spokeswoman for Tucker’s office, Reagan Zimmerman, declined to remark further connected nan lawsuit Wednesday beyond nan nationalist docket.

According to nan 38-page indictment, export controls ordered by President Biden soon aft Russia invaded Ukraine successful February 2022 barroom sending “passenger centrifugal vehicles specifically designed for walking connected snow” to Russia without an export license. Nefedov allegedly owned 2 companies, Absolut Auto Sales and Alaska Sled Tours, utilized to circumvent that requirement.

“At nary clip did Nefedov, Shumovich, Absolut Auto Sales, aliases Alaska Sled Tours use for, receive, aliases person a licence aliases authorization from nan Department of Commerce to export aliases reexport snowfall machines to Russia,” prosecutors wrote.

The defendants’ scheme allegedly called for sending snowmachines to Hong Kong successful China, past connected to Russia. Prosecutors said 2 unnamed criminal conspirators, Russians who worked pinch companies based successful Hong Kong and Russia, helped nan men falsely declare that nan snowmachines were headed for South Korea.

“Nefedov, Shumovich and (the different conspirators) sought to export snowmachines from nan United States to Russia done Hong Kong to conceal that Russia was nan eventual extremity destination,” prosecutors said.

In a May 2022 email to a freight forwarder, nan Russia-based co-conspirator allegedly noted nan cutoff of U.S. snowmachine exports to Russia and suggested a solution.

“If it’s not imaginable to present to Vladivostok, past I propose delivering nan bid successful Hong Kong successful nan sanction of a institution registered successful Hong Kong and from location this institution will nonstop it to Vladivostok,” nan co-conspirator allegedly wrote.

In September 2022, prosecutors said Nefedov placed respective orders for Ski-Doo snowmachines some personally and connected behalf of Alaska Sled Tours, utilizing costs sent by nan Russians’ firms to Absolut Auto Sales. Soon afterward, Shumovich allegedly asked a U.S.-based shipping firm, done which he had sent equipment straight to Russia earlier exports were restricted, for a quote connected sending a instrumentality of snowmachines to China aliases Korea.

“The worker of nan shipping institution refused to vessel nan snowmachines, explaining to Shumovich that companies that had antecedently shipped to Russia and now vessel to China aliases Korea are facing delays and person scrutiny, and that nan worker did not judge nan instrumentality would walk U.S. customs,” prosecutors said.

RELATED: Alaska’s seafood manufacture is successful trouble. Processors and policymakers blasted Russia.

Two months later, prosecutors said a U.S. institution tried to nonstop $475,000 of snowmachines and parts to nan Hong Kong-based conspirator’s institution to fulfill an Alaska Sled Tours order. U.S. customs officials detained nan bid earlier it was shipped, past seized it successful April 2023.

According to Wednesday’s statement, Nefedov and Shumovich each look a maximum condemnation of 20 years successful prison. Prosecutors are besides seeking nan forfeiture of nan seized snowmachines, should nan men beryllium convicted.

Read nan national indictment: