**US Tech Company Fined Millions for Exporting Restricted Technologies to Russia**
A California-based company, Integra Technologies Inc., has been ordered to pay millions of dollars in fines for violating export regulations. The US Department of Commerce’s Bureau of Industry and Security (BIS) imposed a civil penalty of $3.3 million on the company.
**What happened?**
Integra Technologies exported transistors and related products to Russia, which can be used for avionics or radar systems in the war with Ukraine. The company shipped these items through third-party distributors between February and October 2023. The exported goods were designated as Common High Priority List (CHPL) products, which are sought after by Russia for its defense industrial base and weapons programs.
**Russia’s evasion of sanctions**
The US has imposed export controls aimed at cutting off Russia’s access to high-tech components since the full-scale invasion of Ukraine in February 2022. However, Russia finds ways to evade these sanctions, often through third-party jurisdictions.
**Integra’s cooperation**
Integra Technologies voluntarily disclosed the violations and cooperated with investigators. As a result, the company received a significant reduction in the penalty. The fine has been suspended at $1.5 million due to Integra’s limited ability to pay. However, by the end of September 2027, the company must pay $1.8 million.
**Lessons learned**
The BIS noted that Integra’s export compliance program lacked procedures for regular review of Export Administration Regulations updates. This led to the company failing to recognize that these items required a license for export to Russia as of February 2023. The company maintained it believed the products were suitable only for civilian use.
**Ukraine welcomes the fine**
Vladyslav Vlasiuk, Ukraine’s President’s Commissioner for Sanctions Policy, welcomed the fine and hoped there would be more cases where manufacturers are held accountable for non-compliance with export control rules.
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