On Second Anniversary of Russia’s Further Invasion of Ukraine and Following the Death of Aleksey Navalny, Treasury Sanctions Hundreds of Targets in Russia and Globally

February 23, 2024

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WASHINGTON — Today, marking Russia’s two years of unprovoked and unlawful full-scale war against Ukraine and in response to the death of opposition politician and anticorruption activist Aleksey Navalny, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning almost 300 individuals and entities. 

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ALABUGA UAV PROCUREMENT NETWORK

Today’s action also targets the network through which Russia has acquired and produced deadly unmanned aerial vehicles (UAVs). Russia and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) have cooperated to finance and produce Iranian-designed one-way attack UAVs, also known as kamikaze drones, at a newly established a facility in Russia. State is also designating MODAFL pursuant to E.O. 14024 today. This network has facilitated shipments, conducted financial transactions, and engaged in industrial production in support of this cooperation between Russian and Iran to produce one-way attack UAVs for use by the Russian military in Ukraine, including against critical infrastructure and other civilian targets. For more information on these targets, please see Annex 1.

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Annex 1

ALABUGA SPECIAL ECONOMIC ZONE

Russia-based Joint Stock Company Special Economic Zone of Industrial Production Alabuga (SEZ Alabuga) maintains a contract with the Russian military to assemble Geran-2 UAVs that were shipped from Iran, while increasing domestic production capability to produce many of the components for the Iranian-designed UAVs in Russia. SEZ Alabuga is expected to ramp up production under their contract to produce thousands of UAVs through 2025. SEZ Alabuga is owned and controlled by the Government of the Republic of Tatarstan. SEZ Alabuga has exploited underage students from an affiliated polytechnic university as laborers to assemble these attack UAVs in exploitative conditions. 

Albatros OOO (Albatros) is a Russia-based UAV manufacturer that produces the “Albatross M5” UAV that has been operated by the Russian military for reconnaissance against Ukrainian forces. Albatros has partnered with SEZ Alabuga to expand their manufacturing capability through a new facility at SEZ Alabuga.

Limited Liability Company Drake (Drake) is a Russia-based company contracted to receive UAV parts, components, and raw materials from Iran for use in Iranian-designed, Russian-manufactured UAVs. Drake is also involved in a scheme with SEZ Alabuga and Russia-based Alabuga Development OOO to procure commercial UAVs that would be modernized and weaponized for use by the Russian military.

SEZ Alabuga, Albatros, and Drake were designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.

SEZ Alabuga Officials

Russia national Timur Nailevich Shagivaleev (Shagivaleev) is the General Director and member of the Board of Directors for SEZ Alabuga who is involved in the efforts by SEZ Alabuga to increase the manufacturing of UAVs, including efforts to conduct reverse engineering and import substitution to localize production. Shagivaleev has been named in connection with the exploitation of underage students to assemble these UAVs.

Russia national Sergey Sergeyevich Alekseyev (Alekseyev) is the Deputy Chief Executive Officer of SEZ Alabuga and has been involved in the transshipment of materials from Iran to Russia, related to the production of UAVs at SEZ Alabuga.

Russia national Ildar Rashitovich Tazutdinov (Tazutdinov) is the Deputy Director General of Corporate Affairs for SEZ Alabuga and was involved in the transshipment and importation of materials and disassembled UAVs from Iran to Russia related to SEZ Alabuga’s UAV production activity.

Russia national Artem Alexandrovich Snitko (Snitko) is an SEZ Alabuga official involved in the production of Iranian-designed UAVs, such as the Shahed-136, and its Russian version, the Geran-2. Snitko was also involved in the transshipment of materials from Iran to Russia related to SEZ Alabuga’s UAV production activity.

Shagivaleev, Alekseyev, Tazutdinov, and Snitko were designated pursuant to E.O. 14024 for being or having been leaders, officials, senior executive officers, or members of the board of directors of SEZ Alabuga.

Albatros Officials

Russia national Aleksei Vadimovich Florov (Florov) is the General Director of Albatros who is involved with both Albatros’ production expansion to SEZ Alabuga, as well as the effort to localize the production of the Iranian-designed Geran-2.

Russia national Ilya Vladimirovich Voronkov (Voronkov) is a director and shareholder of Albatros.

Florov and Voronkov were designated pursuant to E.O. 14024 for being or having been leaders, officials, senior executive officers, or members of the board of directors of Albatros.

SEZ Alabuga Subsidiaries and Financial Facilitators

Russia-based Limited Liability Company Alabuga Machinery (Alabuga Machinery) is a subsidiary of SEZ Alabuga, via its controlling shareholders Alabuga Development and Russia-based GEA OOO, which is itself a subsidiary of Alabuga Development and SEZ Alabuga. Alabuga Machinery has been used to facilitate financial transactions and trade on behalf of its ultimate beneficial owner SEZ Alabuga to the Iranian government for UAV parts, components, and raw materials.

Alabuga Development OOO (Alabuga Development) is a subsidiary of SEZ Alabuga. Alabuga Development is also involved in a scheme with SEZ Alabuga and Drake to procure commercial UAVs that would be modernized and weaponized for use by the Russian military.

Alabuga Machinery, Alabuga Development, and GEA OOO were designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, SEZ Alabuga.

Russia-based LLC Alabuga Exim (Alabuga Exim), Limited Liability Company NR-DEL (NR-DEL), and Limited Liability Company Specialized Developer Alabuga South Park (Alabuga South Park) are subsidiaries of Alabuga Development.

Russia-based Limited Liability Company Zimens Yokogawa (Zimens Yokogawa) is a subsidiary of Alabuga Development. Zimens Yokogawa has been used to facilitate financial transactions with Iranian front companies.

Alabuga Exim, NR-DEL, Alabuga South Park, and Zimens Yokogawa were designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Alabuga Development.

Iranian Financial Facilitation

Iran’s MODAFL has used a United Arab Emirates-based (UAE-based) front company, Generation Trading FZE, to facilitate the sale of sample UAV models, UAV parts, and related ground stations to SEZ Alabuga to support UAV production in Russia. Generation Trading FZE has received millions of dollars’ worth of payments from SEZ Alabuga and its subsidiaries in support of MODAFL’s contract, which is worth hundreds of millions of dollars.

Generation Trading FZE was designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, MODAFL.

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