Major American defense contractor sold confidential technologies to China, Russia, and Iran
Illustrative photo (Getty Images)
American defense contractor RTX Corp. has agreed to pay a $200 million fine to settle US government allegations that it violated export controls by transferring sensitive technologies to adversaries of the country, including China, Russia, and Iran, reports Bloomberg.
The settlement, announced Friday by the State Department, follows RTX's voluntary disclosure of violations, which it attributed to improper classification of defense articles under the International Traffic in Arms Regulations (ITAR).
RTX's subsidiaries’ non-compliance with US export controls resulted in sensitive technology reaching China and, in some instances, returning to the US, where it was included in military aviation systems such as Air Force One.
The violations primarily occurred at Rockwell Collins Inc., an aerospace manufacturer that was later acquired by RTX’s predecessor, United Technologies Corp. Half of the settlement is suspended on the condition that RTX uses the funds to enhance its compliance programs.
In a July earnings report, the company disclosed it had allocated nearly $1 billion to address the outcomes of three federal investigations.
Russia relies on its partners China, Iran, and North Korea to circumvent sanctions and obtain components for weapon production. For instance, Russian air-to-surface missiles, such as the Kh-59, have been found to contain 42 foreign-manufactured parts and components, while North Korean missiles used by Russia in strikes against Ukraine include components from American and European companies.
