U.S. Sanctions Slovak Man for Attempted Arms Deals between N.Korea and Russia

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a Slovak man for attempting to facilitate arms deals between Russia and the Democratic People’s Republic of Korea (DPRK).

Between the end of 2022 and early 2023, the man, Ashot Mkrtychev (Mkrtychev), worked with DPRK officials to obtain over two dozen kinds of weapons and munitions for Russia in exchange for materials ranging from commercial aircraft, raw materials, and commodities to be sent to the DPRK.

Sanctions and export controls imposed by a coalition of over 30 countries have constrained Russia’s ability to replace lost military equipment and supplies with modern technology. At the same time, the United States and its partners are continuing to provide Ukraine with advanced weapons to defend itself against Russia’s brutal war of choice.

“Russia has lost over 9,000 pieces of heavy military equipment since the start of the war, and thanks in part to multilateral sanctions and export controls, Putin has become increasingly desperate to replace them,” said Secretary of the Treasury Janet L. Yellen. “Schemes like the arms deal pursued by this individual show that Putin is turning to suppliers of last resort like Iran and the DPRK. We remain committed to degrading Russia’s military-industrial capabilities, as well as exposing and countering Russian attempts to evade sanctions and obtain military equipment from the DPRK or any other state that is prepared to support its war in Ukraine.”

Mkrtychev’s negotiations with DPRK and Russian officials detailed mutually beneficial cooperation between North Korea and Russia to include financial payments and barter arrangements. He confirmed Russia’s readiness to receive military equipment from the DPRK with senior Russian officials.

Mkrtychev also provided DPRK officials with information from Russian officials, likely connected to his attempts to obtain military equipment for Russia from DPRK. Lastly, Mkrtychev worked with a Russian individual to locate commercial aircraft suitable for delivery to the DPRK.

As a result of today’s action, all property and interests in property of Mkrtychev that are in the United States, or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50% or more by one or more blocked person are also blocked. 

In addition, persons that engage in certain transactions with the individual designated today may themselves be exposed to designation. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for the individual designated today could be subject to U.S. correspondent or payable-through account sanctions.