AK-47s to be made in America; sanctions don’t apply to U.S.-made Kalashnikovs

The iconic Kalashnikov rifle of America’s enemy form more than half a centtury — from Vietnam to Afghanistan — will now be made right here in the U.S.A.

An American gun company has found a way to deal with the dearth of new AK-47s on the market since U.S. imposed sanctions on Russia went into effect in July: make them in Pennsylvania.

Thomas McCrossin, CEO of the Tullytown-based RWC, was forced to stop importing the famous rifles, but he does have the rights to make Kalashnikov brand rifles in the U.S.

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“We are not permitted to pick up the phone and to talk to [Kalashnikov Concern],” Mr. McCrossin told CNN Tuesday. “In the second quarter of this year we are going to start manufacturing here in the U.S. What I’m manufacturing are our own AK-47s and shotguns under the Kalashnikov brand,” he added.

Due to sanctions imposed on Russia after its annexation of Crimea and its ongoing support for pro-Russian separatists along Ukraine’s eastern border, Mr. McCrossin is only allowed to sell items he purchased prior to the new regulations’ implementation.

In July, the U.S. Department of Treasury released the following statement to American AK-47 owners:

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• If a U.S. person is in possession of a Kalashnikov Concern product that was bought and fully paid for prior to the date of designation (i.e., no payment remains due to Kalashnikov Concern), then that product is not blocked and OFAC sanctions would not prohibit the U.S. person from keeping or selling the product in the secondary market so long as Kalashnikov Concern has no interest in the transaction. New transactions by U.S. persons with Kalashnikov Concern are prohibited, however, and any property in which Kalashnikov Concern has an interest is blocked pursuant to OFAC’s designation of Kalashnikov Concern on July 16, 2014. If a U.S. person has an inventory of Kalashnikov Concern products in which Kalashnikov Concern has an interest (for example, the products are not fully paid for or are being sold on consignment), we advise that U.S. person to contact OFAC for further guidance on handling of the inventory. [7-16-2014]

• If a U.S. person has an inventory of Kalashnikov Concern products in which Kalashnikov Concern has an interest (for example, the products are not fully paid for or are being sold on consignment), we advise that U.S. person to contact OFAC for further guidance on handling of the inventory. [7-16-2014]

Mr. McCrossin told CNN that he has started looking for a new factory to manufacture the American-made AK-47s and is exploring how many new employees RWC will have to hire for the project.