Ilya Pankov faces 12 federal charges accusing him of routing restricted equipment to Russian companies through Turkey, South Korea and Kazakhstan.
SEATTLE, Wash. — A Seattle man faces 12 federal charges accusing him of evading U.S. sanctions against Russia by routing restricted mining and construction equipment through companies in Turkey, South Korea and Kazakhstan.
Federal authorities arrested Ilya Pankov, 53, on Oct. 27, following an indictment alleging he conspired to ship export-controlled goods to Russian companies without the required licenses after Russia invaded Ukraine.
“The 12 counts in this indictment are wide ranging, but all tied into our core mission of investigating the illegal movement of people, goods, money, contraband, weapons and sensitive technology into, out of and through the United States. We will continue to investigate anyone who chooses to circumvent the laws of the United States in these areas.”
— April Miller, Acting HSI Seattle Special Agent in Charge
Pankov pleaded not guilty during his initial appearance in U.S. District Court in Seattle on Tuesday. U.S. District Judge Tana Lin scheduled his trial for Jan. 4, 2027, according to the U.S. Attorney’s Office for the Western District of Washington.
Acting U.S. Attorney Charles Neil Floyd announced the arrest.
“As alleged in the indictment, Mr. Pankov conspired with others to find ways to send restricted items to a variety of companies in Russia, and then lied about it to export regulators.”
— Charles Neil Floyd, Acting U.S. Attorney
Indictment Alleges Shipments Through Third Countries
According to the indictment, Pankov worked as a principal of Pacific Route Inc., also known as Pacific Terminals, a Washington-incorporated procurement company established in 2008 that exports construction and mining equipment.
Prosecutors allege that Pankov and others began using companies in Turkey, South Korea and Kazakhstan to route shipments to Russian businesses after the United States tightened export restrictions in February and March 2022.
The indictment identifies four shipments in 2023 and 2024 that prosecutors allege violated U.S. export controls.
Authorities also accuse Pankov of filing false Electronic Export Information and misrepresenting whether shipments required export licenses.
In two communications with U.S. Customs and Border Protection in 2024, Pankov allegedly claimed that a South Korean buyer would use the equipment. Prosecutors say he knew the goods would ultimately reach Russian companies through South Korea.
“The email exchanges capture in real time the ways they worked to subvert the export control system while they openly discussed using these third-party businesses in other countries to break the law.”
— Charles Neil Floyd, Acting U.S. Attorney
The indictment further alleges that authorities seized two shipments because of sanctions violations.
Prosecutors Allege $225,000 in Money Laundering
Federal prosecutors allege that at least $225,000 in proceeds from the illegal sales passed through bank accounts associated with Pacific Route.
The indictment charges Pankov with conspiracy, unlawful export of controlled goods, smuggling goods from the United States, making false statements and conspiracy to commit money laundering.
The potential maximum penalties vary by charge. Conspiracy carries up to five years in prison, while unlawful exports carry up to 20 years. Smuggling goods carries up to 10 years, and making false statements carries up to five years. Money laundering conspiracy carries up to 20 years.
These are statutory maximums, not predictions of any sentence Pankov might receive if convicted.
Homeland Security Investigations is investigating the case. Assistant U.S. Attorney Rachel Yemini is prosecuting it in collaboration with the Justice Department’s Counterintelligence and Export Control Section.
The charges remain allegations. Pankov is presumed innocent unless prosecutors prove his guilt beyond a reasonable doubt in court.
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