Russian firm uses US subsidiary Copper Mountain Technologies (CMT) to evade Western sanctions

More than 2000 microelectronics for Sukhoi-made aircraft come from Europe, Asia and America.

As Western sanctions continue to pressure Russia’s defense industry, evidence has emerged that Russian company Planar is using its U.S.-based subsidiary, Copper Mountain Technologies (CMT), to bypass these restrictions and supply advanced technology to American markets.

This investigation draws on findings from hacktivists “Cyber Resistance” and reveals new details on how Planar, a leading manufacturer of microwave electronics, operates to support Russia’s military ambitions.

Planar, headquartered in Chelyabinsk, Russia, with production facilities in Tomsk, has played a significant role in supplying advanced electronics for Russia’s defense sector. Among its clients are key military projects, including drones like “Inokhodets” and “Orlan-10” as well as electronic warfare systems like “Svet-KU” and “Leer-3.”

Despite being targeted by sanctions from the U.S., UK, Switzerland, and Germany, Planar’s U.S. subsidiary, Copper Mountain Technologies, has largely escaped these restrictions, allowing it to continue operating on American soil. This has raised concerns about the flow of technology between the companies and their potential to circumvent export controls.

Planar’s history in the global market is extensive, once holding a 10% share in microwave electronics production worldwide before 2022. For the Russian defense industry, Planar has supplied critical components, including parts for the Su-57 fighter jet through its collaboration with JSC “Microwave Plant,” an enterprise facing production issues due to a lack of Western components.

Through Copper Mountain Technologies, Planar has been able to continue acquiring Western electronic parts crucial for Russian military hardware. The equipment produced by CMT, including vector network analyzers like the C1209, bears a striking resemblance to those developed by Planar, differing only in branding and minor design elements.

Further evidence of this connection was uncovered when it was revealed that calibration for CMT products is still conducted at Planar’s facilities in Chelyabinsk. Additionally, both companies share identical patents for their technology in both the U.S. and Russia, highlighting the close ties between them. These patents list Sergey Zaostrovyakh, the director of Planar, as the inventor, and they also involve Planar’s partner company, NPK TAIR.

The role of Planar’s U.S. subsidiary extends beyond mere production. It acts as a logistical hub for facilitating technology transfers between Russia and the United States, with offices strategically placed in Paphos, Cyprus, to handle the flow of goods between Europe and America. Alexey Surkov, a former head of Planar’s software partner SYNECTA in Tomsk, now serves as the general manager of CMT’s European branch, emphasizing the deep-rooted ties between these entities.

CMT’s presence in the U.S. defense industry is notable. The company has provided technology to American firms like Pacific Antenna Systems LLC (PAS), which has secured contracts with the U.S. Department of Defense for producing satellite communication systems. Other clients include the U.S. Air Force Research Laboratory, NASA, and various defense contractors engaged in developing advanced military technologies.

As the links between Planar and Copper Mountain Technologies continue to surface, it becomes increasingly clear that this setup may be used to funnel Western components into Russia’s defense manufacturing pipeline. The products being supplied through CMT could end up enhancing Russia’s military capabilities despite the sanctions designed to cripple its defense sector.

Given these revelations, there is a pressing need for U.S. authorities to scrutinize Copper Mountain Technologies’ operations and ensure compliance with export controls. As Russia’s military remains engaged in its conflict with Ukraine, the use of these components in weapon systems raises critical concerns about the effectiveness of international sanctions aimed at curtailing Moscow’s war capabilities.

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