Bloomberg exposes Armenia's duplicity

Bloomberg has exposed the activities of Armenia, hidden from prying eyes, aimed at helping Russia to circumvent sanctions. Yerevan already got in the crosshairs of the US and the EU relevant services in November 2022, when it was suspected of transporting prohibited goods to Russia.

The former director of Milandr, Mikhail Pavlyuk, who fled Russia in summer 2022, was sanctioned by the US government for his alleged role in an international crime ring that purchased, transshipped and sold semiconductors to Russia via a constellation of Taiwanese, Armenian and Swiss shell companies, Caliber.Az reports, citing Bloomberg.

The US government alleges that Pavlyuk assisted in smuggling the chips from Taiwan to Russia through the Armenian company Milur Electronics LLC, which was formed two months after the Russian invasion of Ukraine began.

This year, US and European officials have stepped up pressure on the Armenian government to restrict the re-export of semiconductors and other dual-use items. Indeed, after the start of the war, Armenia unexpectedly became the world's fourth largest exporter of semiconductors to Russia.

In April, Deputy Secretary of the Treasury Wally Adeyemo visited Armenia to persuade its leaders to crack down on Russian sanctions evasion. Since then, the Armenian government has tightened its export regulations and imposed new controls on semiconductors and other dual-use goods.

The EU is also cracking down on wartime smugglers by increasing penalties for governments that turn a blind eye to international sanctions evasion. In June, the European Commission announced its 11th sanctions package, which empowers EU member states to restrict their exports to countries that are being used to transship sanctioned goods into Russia.

A coordinated political and economic pressure campaign represents a potent threat for Armenia and other former Soviet states, many of which rely on a steady stream of imported US and European goods to support their economies.