Owner of Armalit, a key supplier to Russia’s navy, Russian businessman Oleg Volkov, is living a luxurious life in the United States while his company continues to support Russia’s war against Ukraine, according to an investigation by Trap Aggressor, a project investigating Russian sanctions evasion schemes.
Armalit, established in the late 19th century, has become one of three manufacturers fully meeting Russia’s defense requirements for marine valves. The company participated in Fleet-2024, the main Russian exhibition of shipbuilding and new armaments, held in June 2024 in Kronstadt, a suburb of Saint Petersburg.
In 2023, Armalit secured a federal budget subsidy of 500 million rubles ($5.2 million) through the Russian Ministry of Industry and Trade’s import substitution program. The company’s experts are developing marine valves, including those with remote control, crucial for Russian warships.
Trap Aggressor reports that Volkov owns significant real estate in the United States. He and his wife, Veronika Volkova, jointly own a 908-square-meter mansion in a prestigious area of Atlanta, Georgia, valued at approximately $5 million. Another property registered to Veronika Volkova in Sandy Springs, north of Atlanta, is estimated to be worth about $1 million.
The investigation reveals that Volkov’s children are enjoying privileged lives in the West. His youngest daughter, Varvara, graduated from a private school in Sandy Springs and is now studying at Northeastern University in Boston. The eldest son, Vladimir, is the CEO of Overon Estate Investment, a company selling real estate to Russian clients in Thailand.
Despite Armalit’s involvement in Russia’s defense industry, supplying components to sanctioned Russian shipyards like Yantar plant, Zvezdochka Ship Repair Center JSC, and Baltic Shipyard LLC, Volkov and his company have not been subject to Western sanctions.
Kristofer Harrison, a financial and political risk consultant and co-founder of The Dekleptocracy Project, emphasized to Trap Aggressor the importance of imposing US sanctions not only on Volkov’s Russian companies but also on him personally. “In this case, he will be restricted in his business activities in both Russia and the United States,” Harrison stated.
The investigation also uncovered Volkov’s business activities in Türkiye. In June 2022, Volkov and his business partner Alexander Kuznetsov founded Overon Group İthalat İhracat Danişmanlik Mühendislik Ticaret Anonim Şirketi in Istanbul. Russian customs data indicates that in 2023, this company supplied sanctioned goods to Russian enterprises, including a CNC machining center worth about $1 million and Siemens power grid protection devices.
When contacted by Trap Aggressor, Siemens stated it does not have a business relationship with the Turkish supplier and promptly investigates any indications of sanctions circumvention. The Italian manufacturer Trevisan Macchine Utensili SpA also denied ties to the Turkish Overon but confirmed selling a CNC machine to Armalit in 2008.
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- ISW: Russia relies on India, Serbia, China to evade sanctions
