Commodity Destabilisation and General Awareness

AT11 Slide 1

“Fuel, fund or facilitate conflict”

Destabilising Commodities

AT11 Slide 2

Destabilising Commodities

Destabilizing commodities, directly or indirectly, are perceived to contribute to violence and social/ political insecurity

AT11 Slide 3

War Economies

War economy: economic activities organised to finance war

“The perpetuation of war can become an end in itself, providing and justifying the use of violent means to create or sustain economic profits and political power”

ODI Network Paper 33, July 2000

AT11 Slide 4

War Economy Examples

Angola, 1992 - 2002:• UNITA (National Union for Total Independence of

Angola• During 1997-97 UNITA estimated to have exported

diamonds worth nearly $2bn

DRC, 1997 – To Date:• 80% of cassiterite from conflict zones transported

by air• Strong link between coltan and arms transport

AT11 Slide 5

Embargoed armed groups

Arms brokers

Mining

Narcotics

Refineries

Underworld markets

Air Transport – Key Link in the Chain

AT11 Slide 6

Embargoed armed groups

Arms brokers

Mining

Narcotics

Refineries

Underworld markets

Air Transport – Key Link in the Chain

Airport records

Transfer documentation

AWACS/ Land/Maritime Radar

Aircraft ownership databases

Airport traffic control records

AT11 Slide 7

Avoiding Detection

Re-register companies listed on “watch lists” under a different name

Switch aircraft between countries Complex business structures Operate in countries with lax controls

AT11 Slide 8

Jet Line International company address: an apartment in Kiev with no visible company sign

Company Registration

AT11 Slide 9

Air Cargo Carrier Characteristics

What qualities do arms traffickers look for in an air transport provider?

What qualities do humanitarian organizations look for in an air transport provider?

AT11 Slide 10

Blue Bird

Badr Airlines

Aerolift

Carriers that Raise Ethical Issues

AT11 Slide 11

Characteristics / Warning Signs

AT11 Slide 12

Bangkok Case Study (1 of 8)

Between 1997 and 2009 this aircraft operated under at least eight different companies which have been named in open source arms trafficking reports.

AT11 Slide 13

Bangkok Case Study (2 of 8)

AT11 Slide 14

Ilyushin IL 76 – seized in Bangkok, 12 Dec 2009

Weapons Consignment(“Oil industry parts”)

Crew4 Kazakhs, 1 Belarusian, normally work for Zykov

Plane leased from Union Top Management Ltd (UTM), formed Nov 2009 in Hong Kong.

Bangkok Case Study (3 of 8)

AT11 Slide 15

Weapons Consignment(“Oil industry parts”)

Aerotrack Ltd, Ukraine:Consignee (unknown company)

Korean General Trading Corporation, North Korea:

Shipper (unknown company)

Bangkok Case Study (4 of 8)

AT11 Slide 16

Crew4 Kazakhs, 1 Belarusian, normally work for Zykov

Alexander Zykov(Owner, East Wing)

East Wing (ex GST Aero), Kazakhstan, menitoned in UN

Sanctions Reports 2008/09

Bangkok Case Study (5 of 8)

AT11 Slide 17

Plane leased from Union Top Management Ltd (UTM), formed Nov 2009 in Hong Kong.

Plane provided to UTM by SP Trading.SP Trading formed Jul/Nov 2009, New Zealand

Dario Cabreros Garmendia(Unknown founder of UTM,

based in Barcelona)

Bangkok Case Study (6 of 8)

AT11 Slide 18

Dario Cabreros Garmendia(Unknown founder of UTM,

based in Barcelona)

Acoto Ltd, a ‘secretary firm’: provides board members and company registration service for UTM

Easytime Development Ltd – incorporates UTM in Hong Kong

Global King Ventures Ltd (BVI) – shareholder in Easytime

Bangkok Case Study (7 of 8)

AT11 Slide 19

Plane provided by SP Trading to UTM.SP Trading formed Jul/Nov 2009, New Zealand

Yury Lunyov(Founder, SP Trading)

Lu Zhang(Sole director, provides incorporation service

Plane provided to SP Trading by

Air West, Georgia

Levan Kakabadze(Owner, Air West)

Plane actually owned byOverseas Cargo FZE, UAE

Svetlana Zykov(Owner, Overseas Cargo)

Business Associate

Bangkok Case Study (8 of 8)

AT11 Slide 20

Ilyushin IL 76 – seized in Bangkok, 12 Dec 2009

Weapons Consignment(“Oil industry parts”)

CrewAlexander Zykov,

East Wing

Plane leased from UTM Dario Cabreros Garmendia, UTM

SP Trading provides plane to UTM.

Yury Lunyov,SP Trading)

Air West provide Plane to SP Trading

Levan Kakabadze, Air West

Plane owned byOverseas Cargo

Svetlana Zykov,Overseas Cargo

Business Associate

Married

Commission Regulation (EC) No 1144/2009 of 26 November 2009

Report of the Panel of Experts Pursuant to Resolution 1533 (2004) concerning the DRC S/2009/603

Commission Regulation (EC) No 331/2008 of 11 April 2008

Report of the Panel of Experts Pursuant to Resolution 1533 (2004) concerning the DRC S/2008/773

Commission Regulation (EC) No 235/2007 of 5 March 2007

Commission Regulation (EC) No 474/2006 of 22 March 2006

Security Council letter pursuant to resolution 1533 (2004) concerning the DRC S/2006/53

Hewa Bora Case Study

AT11 Slide 21

Initiatives to Address the Problem

European Union

EthicalCargo

AT11 Slide 22

EU Air Safety Regulations

AT11 Slide 23

EthicalCargo.org

AT11 Slide 24

Questions

AT11 Slide 25