On September 28, the U.S. Commerce Department, Bureau of Industry and Security (BIS) announced that it has imposed a civil penalty fine and denial of export privileges against Vorago Technologies (Vorago) for the unauthorized export of controlled commodities to Russia.
Vorago is a U.S. manufacturer of integrated circuits for use in environments with high radiation levels and extreme temperatures. The company’s products are particularly well suited for use in space. BIS is the primary U.S. government agency that administers and enforces U.S. export controls on commercial items, including particularly strict licensing requirements on items that can be used with weapons of mass destruction or conventional weapons.
According to BIS, Vorago engaged in a conspiracy with a Russian company, Cosmos Complect (Cosmos), to circumvent U.S. export controls. To settle the matter, Vorago agreed to the following:
- A penalty of $497,000, and
- Denial of export privileges until September 2023.
The denial of export privileges, and roughly half of the penalty, will be suspended as long as Vorago complies with the terms of the settlement.