Filenews 1 May 2024 - by Fanis Makrides
A battle with political dimensions and against the backdrop of US sanctions on Russia for the latter's invasion of Ukraine has been taking place since last August in Cyprus. The most recent development of the series took place last Thursday in the Court of Appeal, and there will be a follow-up in the Supreme Court.
The focus is on businessman Artur Petrov, holder of Russian and German citizenship. The latter had been arrested by the Cyprus Police since last August at the request of US law enforcement authorities and since then a legal battle has been ongoing for his extradition or not.
The US alleges that Petrov has committed seven offences between February 2022 and August 2023, namely that he is involved in the supply of microelectronic components, which end users claim are intended to fuel Russia's war machine, in particular to support its military invasion of Ukraine.
Something he rejects. According to the Americans, Petrov falsely pretended that the components in question were intended for commercial use in Cyprus, Latvia and Tajikistan.
The Larnaca District Court rejected his application, approving the objection raised before it by the businessman's lawyer, Elias Stefanou. The legal argument of the latter, which was accepted at first instance, is based on a decision of the Court of Justice of the European Union (Petruchin doctrine), namely that his extradition to a third country (outside the European Union) cannot be accepted without first informing the German authorities. Petrov, as we noted, also has German citizenship. However, the court battles were to continue. The Attorney General appealed the decision and last Thursday the Appellate Judiciary overturned the first instance decision, giving the green light for his extradition.
This verdict is bound to be challenged by his lawyer Elias Stefanou. Initially, the latter will apply for permission to the Supreme Court, stating the reasons for challenging the decision of the Court of Appeal. If and when his request is approved, then the 5-member Higher Judiciary will examine the application.
International implications
The case may not have reached dimensions in Cyprus, but it is approached as an issue with political dimensions. It is indicative of the close coverage by the Russian news agency TASS, which provides updates on all developments, focusing on the political aspect of the whole affair.
Elias Stefanou at TASS
Characteristic is its publication last Thursday, which -among other things- states the following: "Russian Artur Petrov, arrested in Cyprus in August 2023 at the request of US law enforcement authorities, will file an appeal with the Supreme Court. This is what his lawyer told TASS correspondent Elias Stefanou. "After discussion with his lawyers, Artur has decided to file an appeal with the Supreme Court of Cyprus, he will continue to defend himself. The appeal must be filed within 42 days," he added. "We have informed the Prosecutor General of the Republic that Petrov cannot be extradited to the United States until the final decisive word has been given to the Supreme Court of Cyprus."
The Russian version
In the same report of the Russian agency, the Russian version of the whole issue is attributed. It features the positions of experts who spoke to TASS, but also a statement by Petrov himself, who believes that his prosecution is politically motivated. On April 25, the Supreme Court of Cyprus gave its consent to the extradition to the US of Petrov, who is accused by the US side of illegally exporting microelectronics to Russia, thus rejecting the decision of the first instance court in Larnaca. According to experts interviewed by the TASS correspondent, the decision of the Cyprus Court of Appeal, which challenges the decision of the court of first instance, is somewhat unusual. As the Russian businessman said earlier in an interview with the TASS correspondent, filing an appeal to the Supreme Court makes sense if serious legal errors are detected when making the latest decision. Petrov, who in addition to Russian citizenship also holds German citizenship, was arrested in Cyprus on August 26, 2023 at Washington's request on charges of illegally exporting microelectronics to Russia produced in the United States. According to the U.S. Department of Justice, Petrov, 34, "was likely part of a network" that violated U.S. restrictions on deliveries to Russia of some high-tech items. The Ministry argued that this activity took place despite US restrictive measures on imports into Russia of certain high-tech equipment."
Detailed report on November U.S. sanctions
Reason for a Cypriot company-covering Petrov's interests
The case of Artur Petrov took shape after the large-scale sanctions imposed by the US in November 2023, namely the Office of Foreign Capital Control (OFAC) under the US Treasury Department. Specifically, on November 2 last year, it had included a total of 130 entities in a list of restrictions. The reference to Artur Aleksandrovich Petrov, as his full name is, was relatively long. It was noted that on August 31, 2023, he had been charged by the Attorney General's Office of the Southern District of New York "with violations of export control, smuggling, fraud, and money laundering, based on his alleged participation in a United States microelectronics procurement scheme on behalf of a supplier in Russia {...} critical electronic components for manufacturers supplying weapons and other equipment to the Russian military. The Cyprus Police provided critical assistance for Petrov's arrest on August 26, 2023 in the Republic of Cyprus, at the request of the United States."
In the relevant note of the US Treasury, reference is also made to the role that – according to US positions – had a Cypriot cover company: "Petrov first supplied the controlled microelectronics from electronics exporters based in the United States, using a cover company based in Cyprus, Astrafteros Technokosmos LTD (Astrafteros), which he manages. Petrov supplied these sensitive electronic components by falsely presenting to US exporters that Astrafteros was purchasing the items for fire safety systems, among other commercial uses, and that the end users and destinations of the electronics were companies in Cyprus or other third countries – when in fact the components were destined for Elektrokom. Petrov, Elektrokom and Astrafteros were sanctioned under E.O. 14024 for their operation or previous operation in the field of electronics and economy of the Russian Federation."
Elektrokom is a Russia-based supplier of critical electronic components for manufacturers supplying weapons and other equipment to the Russian military.
The decision of the Court of Appeal
On 25/4/2024 the Court of Appeal overturned the decision of the Larnaca District Court. It ruled that the first of a total of three grounds of appeal by the Attorney General "succeeds". The Court of Appeal also considered the ground of cross-appeal before it. From Petrov's point of view, the position was put forward that the offences for which he is being prosecuted fall within the concept of a political offence and therefore his extradition is not permitted under Article 6 of Law 97/70. The cross-appeal was dismissed, as the Court of Appeals held that the respondent's positions "have no basis in the American jurisprudence on which he relies." The continuation of the litigation, as we noted, will concern the Supreme Court.
