U.S. Defense Firm Hit with $200 Million Fine Over Unauthorized Exports to Russia

Written by Kathrine Frich

Aug.31 - 2024 10:27 AM CET

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Photo: Shutterstock
Photo: Shutterstock
The penalty arises from 750 documented infractions,

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Raytheon Technologies, a leading American defense contractor, has been fined $200 million by the U.S. Department of State for a series of export regulation violations, including the unauthorized sale of defense articles.

750 Documented Infractions

The penalty, one of the largest of its kind, arises from 750 documented infractions, many linked to the actions of Rockwell Collins, a company that Raytheon acquired, according to WP.

The violations involve the unauthorized export of sensitive defense equipment, some of which were subject to strict confidentiality agreements.

These exports reportedly included sales to Russia, despite ongoing international sanctions and growing geopolitical tensions.

Raytheon’s full cooperation with the investigation was noted, but the U.S. government has nonetheless imposed severe financial penalties to ensure compliance with export laws.

Half Could be Suspended

Of the $200 million fine, half could be suspended if Raytheon directs those funds towards strengthening its internal compliance procedures.

This measure is intended to prevent future violations and ensure that the company adheres to stringent U.S. export controls, particularly regarding defense-related technologies.

Raytheon is a cornerstone of the U.S. defense industry, producing critical military systems such as the MIM-104 Patriot missile defense system, anti-ballistic and hypersonic weapons, and various radar systems.

These include radars for the F/A-18 Hornet, F-15, and the B-2 Spirit stealth bomber. The company also manufactures BGM-109 Tomahawk cruise missiles and FGM-148 Javelin anti-tank missiles, both of which are used by U.S. allies, including Poland.

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