Ukrainian Citizen Sentenced for Smuggling Export-Controlled Machinery to Russia
Stanislav Romanyuk, a 39-year-old Ukrainian national who last lived in Estonia, has been sentenced to 33 months in prison with an additional three years of supervised release. This sentence follows his involvement in a scheme to bypass U.S. export laws by attempting to smuggle a dual-use export-controlled item to Russia.
According to court records, Romanyuk, who operated the Estonia-based company BY Trade OÜ, conspired with Latvian citizens Vadims Ananics and Eriks Mamonovs, who ran the Latvia-based corporation CNC Weld. Together, they worked with individuals and a company in Russia to illegally transport a 500 Series CPWZ Precision Jig Grinder manufactured in Connecticut to Russia.
The jig grinder, a high-precision machine, requires a license for export to Russia due to its potential use in nuclear and defense applications. Despite this, Romanyuk and his accomplices did not obtain the necessary authorization from the U.S. Department of Commerce, violating the Export Control Reform Act of 2018 and the Export Administration Regulations (EAR).
In April 2019, Romanyuk facilitated the sale of the jig grinder to a Russian firm, with funds transferred from the Russian company to purchase the grinder via Sapphire Universal LLP in Latvia. Sapphire Universal, known for sourcing dual-use items in the U.S. for Russian buyers, used CNC Weld as the supposed recipient to circumvent export licensing requirements to Latvia. In August 2019, Ananics traveled to Connecticut to finalize the purchase, falsely claiming CNC Weld as the end-user. Romanyuk later provided false information to Estonian authorities in September 2021 to hide his involvement.
U.S. and Latvian authorities intercepted the jig grinder in Riga, Latvia, before it could be sent to Russia. Approximately $826,000 involved in the transaction was forfeited, with a significant portion of these funds allocated to aid Ukraine.
Romanyuk was arrested in Estonia on June 13, 2022, and pleaded guilty to international money laundering conspiracy on May 23. He has been in custody since his arrest. Ananics and Mamonovs have also pleaded guilty to related offenses.
The case announcement was made by several U.S. officials, including Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security.
The investigation was a collaborative effort involving multiple agencies, including the Homeland Security Investigation (HSI) Field Offices in New Haven and The Hague, the U.S. Department of Commerce’s Office of Export Enforcement, the FBI, and the IRS Criminal Investigation. Latvian and Estonian authorities also significantly contributed to the investigation.
The prosecution was handled by Assistant U.S. Attorneys Konstantin Lantsman, Stephanie Levick, and Daniel George, along with Trial Attorney Brendan Geary. The Justice Department’s Office of International Affairs provided crucial support.
This case was prosecuted as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which focuses on disrupting and dismantling criminal organizations. More information about OCDETF can be found on their official website.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency task force dedicated to enforcing sanctions and export controls in response to Russia’s military actions in Ukraine.
