Israeli CEO Gal Haimovich Guilty of Violating US Sanctions on Russia

In a significant legal development, Gal Haimovich, the Israeli owner and CEO of the international freight company CTi TLV, has pleaded guilty to conspiracy to violate United States sanctions on Russia. This case highlights the ongoing efforts by the US Department of Justice (DOJ) to enforce sanctions and curb illicit exports to Russia, as reported on justice.gov.

Haimovich admitted to facilitating the export of aviation parts from the United States to Russia by circumventing US sanctions. Between March 2022 and March 2023, he orchestrated approximately 160 shipments of sanctioned goods, leveraging transshipment routes through the United Arab Emirates (UAE) and the Maldives. These actions were part of a broader scheme to support Russian interests by supplying aviation components with potential military applications.

The DOJ allegations reveal that Haimovich deceived US companies by misrepresenting the true destination of the exported goods. He submitted falsified documentation to US authorities, masking the final delivery to Russian clients. This deceptive practice not only violated US sanctions but also undermined international efforts to restrict the flow of sensitive materials to Russia.

Central to the case is the revelation that Haimovich billed Russian customers at least USD 2 million for these sanctions-busting exports. Court documents and email evidence indicate that Haimovich operated with full knowledge of the shipments’ ultimate destination. Russian customers explicitly instructed him to deceive US companies and authorities to ensure that the actual sender remained unaware of the cargo’s final destination in Russia.

Among the Russian clients involved, S7 Airlines, based in Novosibirsk, was identified by name in the DOJ’s filings. S7 Airlines is a major Russian carrier, and its involvement underscores the potential military implications of the exported aviation parts. The DOJ’s investigation highlights the sophisticated methods used to bypass sanctions, including the use of intermediary countries like the UAE and the Maldives to obscure the true end-users of the exported goods.

As part of his guilty plea, Gal Haimovich has agreed to forfeit over USD 2 million in cash and a substantial stockpile of aviation parts. This forfeiture is a significant penalty, reflecting the gravity of his actions in violating US sanctions. The sentencing hearing for Haimovich is scheduled for November 22, where he will face the consequences of his illegal activities.

Haimovich’s logistics firm, CTi TLV, has been at the center of this legal battle. According to his social media profiles, Haimovich has been actively involved in the logistics and freight industry, managing complex international shipments. However, his involvement in sanction violations has tarnished his reputation and raised serious concerns about the integrity of his business operations.

The case against Gal Haimovich serves as a stark reminder of the stringent enforcement measures employed by the US government to uphold international sanctions. It underscores the importance of compliance with trade regulations and the severe repercussions of attempting to evade them. By targeting individuals and companies that facilitate the export of sanctioned goods, the DOJ aims to disrupt networks that support adversarial nations.

As the legal proceedings against Haimovich progress, the case will likely serve as a precedent for future enforcement actions against those who violate US sanctions. It also highlights the need for robust compliance mechanisms within international freight and logistics companies to prevent the illicit export of sensitive materials.

Sources: AirGuide Business airguide.info, bing.com, justice.gov