In federal court in Portland, a 57-year-old man entered a not guilty plea to an indictment alleging that he attempted to export a flight control and air navigation system from Oregon to Russia via his native India.
According to the indictment, Sanjay Kaushik allegedly colluded with others to purchase technology and aerospace products in India with the intention of shipping them to Russia while claiming that the purchases were for his company.
The U.S. Department of Commerce enforced additional license requirements on shipments to Russia following Russia’s 2022 invasion of Ukraine.
According to agent Matthew Peterson of the U.S. Department of Commerce’s Bureau of Industry and Security, Russian procurement agents have responded by looking for individuals and businesses in nations with better trade relations with the United States, like India, the United Arab Emirates, and some European nations, to purchase technology on their behalf. Peterson is employed at the department’s Portland Office of Export Enforcement.
“Kaushik’s arrest was part of a federal investigation into an alleged conspiracy involving Markus Kaltenegger, an Austrian citizen and owner of the Austrian company Yoracraft, Kaushik, an Indian citizen and managing partner of Arezo Aviation Services Limited, also known as AREZO, and others to procure export-controlled aerospace technology on behalf of Russia in violation of U.S. smuggling laws,” Peterson said.
In September 2023, when purchasing $72,000 from an unnamed U.S. corporation in Oregon, Kaushik signed a paper committing him to not export, reexport, or transfer (in country) any goods that are subject to export restrictions to Russia, Ukraine, or Belarus, either directly or indirectly. In a federal affidavit, Kaushik stated that the equipment will be utilized in a civilian helicopter.
In order to export the equipment to India, the U.S. corporation requested for a license.
However, the indictment stated that federal investigators quickly stepped in and stopped the transaction after learning that Arezo Aviation had shipped 53 cargo totaling over $6 million to a Moscow, Russia-based corporation since July 2023. According to Peterson’s affidavit, the majority of the items were equipment or parts for aircraft.
According to the accusation, Kaltenegger, the Austrian, is accused of arranging the transaction on Kaushik’s behalf. Kaltenegger has not yet been charged in an Oregon federal court. Whether he has been arrested elsewhere is unknown.
According to the affidavit, Peterson obtained warrants to search through the emails of Kaushik and Kaltenegger. He discovered that the two men planned to ship aviation equipment and technology from the United States for Russian use, and they divided the profits with alleged Russian brokers involved in the illicit procurement.
According to the affidavit, Kaushik seemed to be pursuing aviation business in Russia in spite of warnings about international limits in an email he sent to Kaltenegger.
On October 17, Kaushik was taken into custody in Miami on a warrant and taken to Oregon to face the indictment. On Friday, he appeared in federal court for the first time in Portland.
On Kaushik’s behalf, Assistant Federal Public Defender Suman Malempati pled not guilty to charges of attempting to illegally export a navigation and flight control system from Oregon to Russia via India, making false statements in connection with an export, and conspiring to export controlled aviation components with dual civilian and military applications to Russian companies.
In anticipation of his trial, which is currently scheduled for January 21, Kaushik is still being held at the federal detention facility in Sheridan.
— Maxine Bernstein writes about criminal justice and federal courts. You may contact her at [email protected], 503-221-8212, or follow her on LinkedIn or X@maxoregonian.
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