October 4, 2012 / 3:00 PM / 7 years ago

UPDATE 3-Russia dismisses talk of new spy scandal with U.S.

* U.S. says it has uncovered smuggling network

* Russians charged in United States over the case

* Deputy minister says intelligence gathering not involved

By Nastassia Astrasheuskaya and Maria Tsvetkova

MOSCOW, Oct 4 (Reuters) - Russia said on Thursday the Kremlin had nothing to do with a network alleged by the United States to be smuggling military technology to Moscow.

The U.S. Justice Department said on Wednesday it had broken up an elaborate network aimed at illegally acquiring U.S.-made microelectronic components for Russian military and spy agencies. It charged 11 people with taking part.

The Russian Foreign Ministry expressed surprise at the allegations.

“The charges are of a criminal nature and have nothing to do with intelligence activity,” Deputy Foreign Minister Sergei Ryabkov told Russian news agencies.

Foreign Ministry spokesman Alexander Lukashevich said Washington had informed Moscow that the charges were criminal and unrelated to espionage.

“We will look into this situation and what really happened, and what charges are being imposed on our citizens,” he said.

Lukashevich said U.S. authorities had “not properly informed” Russia of the arrest of its citizens. Russian diplomats were seeking access to them and a consul had met one in a courtroom, he said.

Foreign Minister Sergei Lavrov said in an interview this week that Moscow and Washington must do more to strengthen relations.

Republican candidate Mitt Romney has accused U.S. President Barack Obama of being soft on Moscow during his four-year term and described Russia as the United States’ “number one geopolitical foe”.

In 2010, the United States arrested 10 suspected Russian agents who were later sent back to Russia in the biggest spy swap since the Cold War.


The U.S. Justice Department said 11 people, and companies based in Houston, Texas and Moscow, had been accused on Wednesday of illegally exporting high-tech components to Russian security agencies. The U.S. companies from whom the components were bought were not identified.

A U.S. official said Alexander Fishenko, a Kazakhstan native who migrated to the United States in 1994 and has frequently travelled to Russia, had been charged with operating in the United States as an unregistered agent of the Russian government. He was being held in custody with seven others in Houston.

The Justice Department said three others were in Russia including Sergei Klinov, identified as CEO of Apex System, which it said served as a certified supplier of military equipment to Russia’s government, working through subsidiaries.

Klinov, reached by telephone in his office in Moscow, said he had learned about the accusations from media reports.

“Honestly, I am very upset. I just don’t know what to say. Everyone has his own truth and it is somewhere in the middle,” he told Reuters.

Asked whether he worked either for the security services or for the Defence Ministry, he said: “I am floored by this. I don’t know what I’m supposed to say.”

Russia’s Federal Security Service (FSB), successor of the KGB, and the Defence Ministry denied immediate comment.

FSB chief Alexander Bortnikov later told Russian news agencies he had ordered the security services to look into the matter and that it would be premature to comment.

Another person facing accusations was named as Yuri Savin and described as the marketing director of Russia-based company Atrilor. The company denied having an employee of that name.

Four of the eight arrested are Russian citizens and three of those also have U.S. citizenship, Interfax reported. It said the others were citizens of Azerbaijan, Ukraine and Kazakhstan.

“To me, this is ordinary - through maybe risky - business. Many companies and people did business this way in Soviet times,” said Andrei Soldatov, head of the Agentura think tank.

“Many tycoons made their first money this way. To say they were all spies would be wrong,” said Soldatov, whose organisation monitors security and intelligence agencies.

He said however that Russian military institutes, whose work on developing technology lags that of their U.S. counterparts, may have tried to acquire new technology this way.

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