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Congressman wants federal probe into Russian-linked gunmaker

Rep. Ted Deutch asks if company violated sanctions.
The website for Kalashnikov USA (screen shot)
Published Apr. 11, 2018
Updated Apr. 12, 2018

WASHINGTON – U.S. Rep. Ted Deutch is asking the Treasury to investigated whether a Florida-based gun maker with Russian ties has violated sanctions.

"Kalashnikov USA is a firearms manufacturer and seller located in my congressional district," the Boca Raton Democrat wrote in a letter to a Treasury official. "Recent media reports have raised questions as to whether Kalashnikov USA, or its parent company RWC Group LLC, may have violated federal sanctions law through illicit business relations with the Russian-owned Kalashnikov Concern JSC ("Kalashnikov Russia").

"According to a statement released by Kalashnikov USA, it relocated to South Florida in 2015. Reports indicate that Kalashnikov USA may have been offered tax incentives as part of Florida Governor Rick Scott's push to lure weapons manufacturers to Florida. According to Kalashnikov USA's own 2015 application for $162,000 in tax incentives, which was approved by Governor Scott's administration, the company planned to assemble its weapons with parts and components imported from Kalashnikov Russia's factory located in Russia.

"As you know, Kalashnikov Russia was sanctioned in 2014 as part of the U.S. response to Vladimir Putin's illegal actions in Ukraine. Given reports of Russia's attempts to illegally fund the National Rifle Association, connections between a US weapons manufacturer and a sanctioned Russian company are even more alarming."

Democrats, including Sen. Bill Nelson, have been angling to make this an issue against Scott, whose administration acknowledges the incentives but says none was given because the contract was terminated.

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