Extreme Networks Agrees to $1,529,685 Settlement Over Exports to Blocked Russian Defense Manufacturer

What happened

The Office of Foreign Assets Control (OFAC), part of the U.S. Department of the Treasury, announced a $1,529,685 settlement with Extreme Networks, Inc., a cloud networking solutions provider headquartered in North Carolina ^[1]. OFAC says that between September 2018 and March 2022, the company exported networking equipment and related services from the United States on nine occasions to Joint Stock Company (JSC) Moskovskiy Mashinostroitelniy Zavod Avangard, a Russian defense manufacturer ^[1].

OFAC says that buyer was blocked by operation of law and majority owned by designated JSC Concern Almaz Antey ^[1].

OFAC says the settlement amount reflects its finding that the apparent violations were voluntarily self-disclosed and egregious ^[1]. The full Enforcement Release and Settlement Agreement are posted with the announcement ^[1][2][3].

How it affects Americans

The shipments started in the United States, and the sanctions in question are U.S. rules that apply to American companies ^[1]. A firm based in North Carolina sent equipment and services to a Russian defense manufacturer for more than three years, according to OFAC ^[1]. American companies that sell overseas can read OFAC's own account of how the exports happened in the Enforcement Release ^[1][2].

The Veil Press view

Sanctions on Russian defense firms only work if American suppliers know who they are selling to. OFAC describes the buyer here as a Russian defense manufacturer, and it says the exports took place on nine occasions from September 2018 to March 2022 ^[1]. OFAC says the settlement amount of $1,529,685 reflects its finding that the apparent violations were voluntarily self-disclosed and egregious ^[1]. The Enforcement Release and Settlement Agreement give OFAC's full account of the case for readers who want the detail ^[1][2][3].

What we know

Confirmed

• Extreme Networks, Inc. agreed to a $1,529,685 settlement with OFAC ^[1].
• OFAC says the company exported networking equipment and related services from the United States on nine occasions between September 2018 and March 2022 ^[1].
• OFAC says the buyer, Joint Stock Company (JSC) Moskovskiy Mashinostroitelniy Zavod Avangard, was blocked by operation of law and majority owned by designated JSC Concern Almaz Antey ^[1].
• OFAC found the apparent violations voluntarily self-disclosed and egregious ^[1].

Still being reported

• None.