- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2025-01-07T16:26:00
Nearly three years after Russia invaded Ukraine, numerous U.S. sanctions imposed on Russia-based companies connected to the war effort have made doing business in the country fraught with unseen risks, as one U.S. airplane parts distributor learned recently.
New York-based SkyGeek Logistics allegedly violated U.S. sanctions on Russia six times, according to an enforcement order released Dec. 31 by the Treasury Department’s Office of Foreign Assets Control (OFAC). SkyGeek was conducting business legally with two Russian companies until they were sanctioned by the U.S. in 2023. The violations occurred when SkyGeek shipped products and attempted to provide refunds to Flavic FZE and Mirage Air Craft Services approximately 56 days and 25 days, respectively, after U.S. sanctions were imposed on the two Russian firms.
In both cases, U.S.-based partner banks flagged refund payments as violating U.S. sanctions.
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