How a Russian arms maker targets unknowing Canadian companies to get around sanctions

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EXFO is a Montreal-based telecommunications company and government contractor.

At the outset of Russia’s invasion of Ukraine in 2022, countries including Canada immediately imposed extensive sanctions against the Russian military industrial complex. A recent hack of one Russian arms maker provides insights into how they pursue technology used to make weapons from unknowing Canadian companies.

According to a senior officer in the Ukrainian military with direct knowledge of the hacked materials, the hackers provided them with the information from STC. Considered one of Russia's most important military assets, the Orlan-10 model made by STC, is capable of cellular jamming enemy troops and gathering targeting and geolocation data for artillery barrages and missile strikes.

A series of 2022 emails with a sales representative at Compel, a Moscow-based semiconductor company, shows the same STC employee buying 10 Aimtec DC-DC converters, using the arms manufacturer's front company, SMT-iLogic. "Aimtec mandates all its distributors to respect U.S.-Canada Trade Compliance Regulations," said the company in a statement, adding that it strictly follows all U.S. and Canadian national security export regimes.

Global Affairs Canada spokesperson Jason Kung maintained that Ottawa had already imposed heavy sanctions against Russia since the full-scale invasion began in February 2022, noting that new bans were made on all microelectronics that qualify as "military and dual-use goods and technology." She told CBC News the supply chain also greatly benefits from an emboldened China aiding its Russian ally.Special Technology Center is a Russian defence contractor that makes the Orlan-10 drone, one of the Russian military’s most important weapons.

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