In a significant enforcement of export control laws, Canadian national Nikolay Goltsev, 38, from Montreal, has been sentenced to 40 months in a U.S. prison for orchestrating a multimillion-dollar scheme to illegally export electronics to Russia.
These components were later discovered in Russian military equipment deployed in Ukraine, underscoring the scheme’s impact on global security.
Goltsev utilized two Brooklyn-based companies, SH Brothers Inc. and SN Electronics Inc., to procure and ship dual-use electronics from U.S. manufacturers to sanctioned Russian entities.
These shipments, valued at over $7 million, included integrated circuits and other components critical to Russia’s precision-guided weapons systems.
Investigations revealed that some of these components were found in Russian weapons platforms and signals intelligence equipment seized in Ukraine.
To evade detection, Goltsev and his co-conspirators routed the shipments through intermediary front companies in countries such as Turkey, Hong Kong, India, China, and the United Arab Emirates before redirecting them to Russia.
This complex network was designed to circumvent U.S. export control laws and international sanctions imposed following Russia’s actions in Ukraine.
Communications between Goltsev and his associates indicate a clear awareness of the illegal nature of their activities and their support for Russia’s military objectives.
In a text exchange dated May 30, 2023, Goltsev and his wife, co-defendant Kristina Puzyreva, expressed strong pro-Russian sentiments and hostility towards Ukraine.
Such exchanges highlight the defendants’ motivations and disregard for international law.
The U.S. Department of Justice has emphasized the significance of this sentencing. Attorney General Merrick B. Garland stated, “The Justice Department is sparing no effort to ensure that those who violate America’s export controls to feed Russia’s war machine answer for their crimes in American courtrooms.”
This case exemplifies the U.S. government’s commitment to enforcing export controls and preventing the unlawful acquisition of U.S. technology by adversarial nations.
Goltsev’s sentencing follows the earlier sentencing of his wife, Kristina Puzyreva, who received a 24-month prison term for conspiracy to launder the proceeds of the export scheme.
Another co-defendant, Salimdzhon Nasriddinov, is awaiting sentencing. The investigation, led by the Bureau of Industry and Security (BIS), Homeland Security Investigations (HSI), and the Federal Bureau of Investigation (FBI), underscores the collaborative efforts of various agencies to uphold national security.
This case also highlights the challenges in preventing the illicit procurement of dual-use technologies—items that have both civilian and military applications.
The use of front companies and complex international shipping routes illustrates the lengths to which individuals and entities will go to circumvent export controls.
It underscores the need for vigilance and robust enforcement mechanisms to protect sensitive technologies from being diverted to unauthorized end-users.
The sentencing of Goltsev serves as a deterrent to others who might consider engaging in similar activities.
As stated by U.S. Attorney Breon Peace for the Eastern District of New York, “Today’s sentence goes a long way in preventing Russia’s access to U.S. electronics for use in the unlawful war against Ukraine.”
It reaffirms the United States’ commitment to enforcing export controls and supporting international efforts to hold accountable those who contribute to global conflicts through illegal means.