The Belarusian companies Open Joint Stock Company Management Holding Company Amkodor (Amkodor) and the Belavtomaz Holding Management Company (Belavtomaz) — along with their owners — which will supply the Nicaraguan Army and Police with more than 250 vehicles and machines, were sanctioned by the U.S. Department of the Treasury in 2023 due to their direct ties to the authoritarian regime of Aleksandr Lukashenko and their complicity in Russia’s invasion of Ukraine.
On March 24, 2023, the U.S. Treasury Department added the Minsk Automobile Plant (MAZ) — operator of Belavtomaz — to its Specially Designated Nationals (SDN) list. On December 5 of the same year, Amkodor was included on a list of 11 entities and seven individuals, among them its owner Aliaksandr Shakutsin, a businessman close to Lukashenko, considered part of his inner circle and one of his main financiers.
On Wednesday, July 2, lawmakers in Nicaragua’s National Assembly approved two loan agreements. The first, totaling $25.53 million, will be allocated to the Nicaraguan Army for the purchase of vehicles and machinery from the company Amkodor. The acquisition includes 205 vehicles in total, such as off-road trucks, dump trucks, tankers, and construction equipment including loaders, excavators, tractors, and others. The purchase also covers spare parts to extend the service life of the acquired vehicles.
A second credit agreement, worth $4.82 million, will enable the National Police to acquire 50 off-road and urban vehicles. The sales contract for these vehicles was signed by the deputy commercial director of Belavtomaz, the company that will supply the contract.
Amkodor and Shakutsin Sanctioned by OFAC
According to the U.S. Department of the Treasury, Shakutsin has benefited from state contracts, privatizations, and public loans in exchange for his loyalty to the Belarusian regime.
“Shakutsin has been one of Lukashenko’s closest supporters and one of his ‘wallets,’ providing funds to Lukashenko and his regime in exchange for preferential treatment and benefits,” stated OFAC in its justification for the sanctions.
It went on to detail that in 2020, the businessman—considered an oligarch—“openly supported Lukashenko following the widely condemned fraudulent elections and denounced pro-democracy protesters amid a brutal crackdown on civil liberties.”
OFAC stated that Shakutsin, who has already been sanctioned by numerous U.S. allies, “continues to attempt to evade sanctions through front companies in Europe and the Middle East and regularly violates import bans on machinery to Belarus and Russia.”
OFAC further indicated that through Amkodor, Shakutsin controls a significant portion of Belarus’s construction machinery industry, and revealed that since at least 2021 he has offered his company’s services to the Belarusian Ministry of Defense and has developed projects to manufacture attack drones and artillery systems intended for export.
“Shakutsin has personally offered Amkodor’s services as a defense technology developer to Lukashenko and the Belarusian Armed Forces. Amkodor is developing and planning to produce attack drones and artillery fire systems, which representatives of Amkodor and the Belarusian military have described as having high export potential,” stated OFAC.
It went on to note that despite recording deficits for years, Amkodor has managed to stay afloat thanks to Lukashenko’s personal favors, which have included state loans and other benefits at the public’s expense. “Amkodor has relied on Shakutsin’s personal relationship with Lukashenko to secure highly favorable loans and other forms of public support at the expense of the average Belarusian,” OFAC said.
Furthermore, the company has expanded its presence in the Russian market following the exit of Western firms as a result of the war in Ukraine. According to its official website, Amkodor encompasses 30 legal entities and 22 plants in Belarus, Russia, and other Commonwealth of Independent States (CIS) countries. It was founded in 1927, with its core being the Udarnik factory in Minsk, which was privatized by Shakutsin in 2001.
MAZ, the operator of Belautomaz and its owner
Belautomaz, through its subsidiary MAZ, is subject to severe international sanctions. OFAC argued in March 2023 that the Minsk Automobile Plant (MAZ)—the operator of Belautomaz—is one of the largest automobile manufacturers in Belarus and a major source of revenue for the Lukashenko regime.
«MAZ employees who participated in peaceful strikes and protests following the fraudulent August 2020 presidential elections in Belarus were intimidated and subsequently fired by the company’s management,» OFAC stated.
The director of MAZ is Valery Valerievich Ivankovich; both he and MAZ were previously designated by the European Union (EU) and Canada for sanctions. OFAC designated the plant pursuant to Executive Order 14038 for being owned or controlled; or for having acted or purported to act for or on behalf of, directly or indirectly, the Government.
While Ivankovich was designated under Executive Order 14038 for being or having been a leader or official of the Government.
Belavtomaz’s headquarters is the Minsk Automobile Plant (MAZ), founded in 1944, which produces a variety of trucks including tractors, dump trucks, chassis for municipal equipment, as well as buses, electric motor coaches, and trolleybuses for urban transport. It comprises around 12 companies, employs more than 21,000 workers, and has an extensive network of over 160 distributors.
According to MAZ’s website, Belavtomaz exports to more than 40 countries, including Russia, Kazakhstan, Uzbekistan, the Middle East, Africa, and South America.
Scope of the Designations
Although Belavtomaz and Amkodor operate independently within the Belarusian industrial sector, both are involved in the manufacturing of specialized vehicles and equipment. Belavtomaz focuses on heavy machinery such as shovels, loaders, motor graders, and forestry equipment; meanwhile, Belavtomaz produces vehicles based on chassis for both civilian and military applications, including transport trucks and special units.
For this reason, in export projects such as those carried out in Nicaragua, it is common for Amkodor to supply the heavy machinery, while Belavtomaz provides transport and heavy logistics vehicles, functioning in a complementary manner.
The United States sanctioned Amkodor and MAZ under Executive Order 14038, which authorizes penalties against those operating in Belarus’s construction sector, in this case for contributing to the economic and military apparatus of a regime allied with Moscow.
As a result of this designation, all assets and interests of Amkodor and MAZ, as well as their owners—Shakutsin and Ivankovich—within the United States are blocked, and any transactions with U.S. citizens or companies are prohibited unless specially authorized by OFAC.
Sanctions could also extend to third countries or financial institutions that maintain relationships with the designated entities.
“Financial institutions and other persons engaging in certain transactions or activities with the sanctioned entities and individuals may be subject to sanctions or enforcement actions. The prohibitions include making any contribution or providing funds, goods, or services to, from, or for the benefit of any designated person, or receiving any contribution or provision of funds, goods, or services from such a person,” emphasized OFAC.
