The American technology company Extreme Networks, which produces computer network equipment for IT systems, supplied its products to the Russian state-owned Moscow Machine-Building Plant "Avangard" — it has been under US sanctions since 2014.
The Reuters agency, citing e-mails and sources, writes that the equipment of Extreme Networks, most likely, was used in the production of missile systems S-400 and in the construction of warships.
Extreme said that based on Reuters data, they believe their equipment may have been sold to Avangard through a shell company scheme in which distributors played a key role. They actually helped circumvent sanctions.
According to journalists, Avangard purchased high-speed switches and software from Extreme from 2017 to 2021. Operations were carried out, in particular, through the distributor RRC, whose parent company, BD Enterprise Networking, is registered in Cyprus. The plant itself was disguised in documents under the name DEMZ.
At times, Extreme employees were suspicious of DEMZʼs ties to a Russian defense contractor, but ultimately the sale of the equipment was agreed upon.
In addition, according to journalists, Extreme sold equipment to the United Shipbuilding Corporation, which operates Russian shipyards that build frigates, submarines, etc. The Morinformsystem-Agat concern, a manufacturer of radars and military electronics systems, also bought equipment from Extreme. They are also under US sanctions and likely used similar schemes to circumvent the restrictions.