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Russian Firm Sanctioned for Missile-Related Transfers By Mike Nartker WASHINGTON — The United States today imposed sanctions against a Russian entity for allegedly engaging in missile proliferation activities (see GSN, April 5). A decision was made last month to penalize the Federal Research and Production Complex Altay for violating the U.S. Arms Export Control Act and the Export Administration Act of 1979. The company, described as a “state unitary enterprise” on its Web site, was sanctioned for transferring an item listed in Category 2 of the Missile Technology Control Regime annex to a non-MTCR country, a U.S. State Department official said today, refusing to provide further details. Category 2 items cover a wide range of dual-use items and technologies capable of being used to develop ballistic missiles. The sanctions, which are set expire in two years, prevent U.S. companies from exporting items controlled by the regime and U.S. control lists to the Russian company. In addition, the company would be prevented from entering into contracts with the U.S. government for items listed on the MTCR annex. The State Department official said that a separate penalty could also have been imposed that would have prevented the Russian company from exporting any items to the United States for two years. Such sanctions were not imposed, though, because no determination was made that the alleged transfer made the required “substantial contribution” to a missile program, the official said. This is the first time that the United States has sanctioned the Federal Research and Production Complex Altay for alleged missile proliferation activities, the State Department official said. The United States last imposed sanctions against Russian entities in April, when the Baranov Engine Building Association Overhaul Facility and Russian national Vadim Vorobey were among 13 entities from seven countries penalized for alleged WMD- and missile-related transfers to Iran. The United States continues to have “long-standing concerns” about the ability of would-be proliferators to obtain items and technologies from Russian entities, the State Department official said. Russian officials have been notified of today’s sanctions but have yet to issue a reaction, the State Department official said. A spokesman for the Russian Embassy in Washington refused to comment on today’s sanctions. Russia, however, believes that unilaterally imposed sanctions are “counterproductive,” embassy spokesman Yevgeniy Khorishko said, adding that the United States has yet to provide “proof” that Russian entities have violated international nonproliferation regimes.
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