Daily Compliance Brief — OFAC Penalizes Extreme Networks $1.53 Million for Russia Sanctions Violations

October 28, 2026

Signal

On October 27, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a settlement of $1,529,685 with Extreme Networks, Inc. over nine exports of networking equipment and related services to a blocked Russian defense manufacturer between September 2018 and March 2022. According to OFAC’s official enforcement notice, the recipient, Joint Stock Company Moskovskiy Mashinostroitelniy Zavod Avangard, was blocked by operation of law and majority-owned by designated JSC Concern Almaz-Antey.

OFAC characterized the apparent violations as egregious, while noting that the company voluntarily disclosed them. The case demonstrates how sanctions exposure can arise through the end user and ownership structure of a transaction, even when the immediate product is commercial networking equipment.

Why it matters

Export compliance and sanctions screening processes should assess end users, beneficial ownership and indirect links to blocked entities, rather than relying solely on direct customer screening. Controls should connect export documentation, distributor relationships and customer due diligence to sanctions review before goods or services are provided.

The case also highlights the importance of identifying red flags across historical transactions and documenting escalation decisions. Voluntary disclosure was noted by OFAC, but did not prevent a substantial settlement, reinforcing the need for effective preventive controls and timely remediation.