Two Russian-born American citizens were arrested on Tuesday for attempting to illegally export $500,000 worth of snowmachines from the US to Russia via China, circumventing US export controls amid Russia's invasion of Ukraine. 

2 Russian-Born American Citizens Get Charged With Alleged Illegal Exporting Snowmachines

In a press release on Wednesday, the US Attorney's Office District of Alaska said Sergey Nefedov, 40, of Anchorage, Alaska, and Mark Shumovich, 35, of Bellevue, Washington, were facing multiple charges, including conspiracy to unlawfully export goods from the US, smuggling and conspiracy to commit international money laundering.

The two men reportedly face a maximum of 20 years in prison. The indictment alleged that between March 2022 and May 2023, Nefedov and Shumovich allegedly conspired with associates in Russia and Hong Kong to evade export restrictions imposed on luxury goods to Russia under Executive Order 14068 following Russia's invasion of Ukraine.

The plan reportedly involved routing snowmachines and parts through a Hong Kong intermediary before reaching Russia. Authorities reported seizing all 17 snowmachines involved.

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Nearly $1 Million Worth of Goods

Nefedov and Shumovich allegedly collaborated with a Russian national who owned a snowmachine business in Russia and another in Hong Kong.

They used these connections to obtain nearly $1 million worth of goods by allegedly making false invoices and misleading a freight forwarder by saying that the goods needed to be transited to "a third country" from the US because equipment deliveries to Russia "have been stopped."

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