Lithuania – Customs Department launches investigation into exports to Russia

Following press reporting into allegations that the Viciūnai Group of companies were exporting sanctioned goods to Russia, it is now being reported that the Lithuanian Customs Department has commenced a pre-trial investigation.

The allegations include that dual use and “battlefield” goods were being exported to a factory in Kaliningrad operated by a related company.

It is reported that the company has confirmed the fact of the exports, but claims that it was not aware that the goods in question (which includes ball bearings, semi-conductors, electrical components and other goods) were subject to sanctions.

 

United Kingdom – charges to two further individuals added to existing prosecution

Further to our earlier post, regarding the UK’s National Crime Agency charging Dmitry Ovsyannikov with multiple counts of breaching the UK’s Russian sanctions, following a hearing in London it is now apparent that the National Crime Agency has also charged Ekaterina Ovsiannikova (the first defendant’s wife) and Alexei Owsjanikow, (the second defendant’s brother).

As per Spotlight on Corruption, a further hearing is listed for 28 June to hear application by the defendants to dismiss the charges.

The hearing, as reported by Global Investigations Review (behind a paywall), on Monday was largely procedural and dealt with issues like bail terms. The defendants have yet to enter a plea.

 

Germany – Ministry of Economic Affairs calls for investigation into alleged sanctions breaches relating to Mariupol reconstruction

The German Ministry of Economic Affairs and Climate Change is being quoted in the press as having called for an investigation by the relevant authorities into allegations that two German companies may be breaching the EU’s sanctions by providing material for the rebuilding of the occupied city of Mariupol.

The companies, Knauf and WKB Systems GmbH have both issued statements saying they comply with relevant sanctions.

The call for an investigation follows reports of the supply of construction material first published in Monitor.

Cyprus – sanctions investigation into purported share transfer by Mordashov in the “final stages”

Further to our earlier post there has been an ongoing investigation in Cyprus in relation to the alleged transfer of over $1 billion in shares by Alexey Mordashov in breach of the asset freeze imposed upon him by the European Union.

It is now being reported that the Cypriot investigation has reached its “final stages”.

The report gives no indication of the outcome of the investigation.

The allegations relate to transfers of the shares in the tourism operator Tui.

Ireland – investigation launched into alleged breaches of EU and UN Libyan sanctions

The Irish Department of Enterprise, Trade and Employment has launched an investigation into alleged breaches of both UN and EU sanctions against Libya first reported in the Irish Times.

It is alleged that former members of the Irish Defence Forces provided military training and material to forces of Khalifa Haftar’s Libyan National Army in breach of relevant arms embargoes.

It is alleged that the initial contract was entered into by an Irish company co-owned by Danny Cluskey, Darren Kelly and Nigel McCormack, and that the contract was then switched to a Dubai-based company (SOF Training).

 

United Kingdom – Gambling Commission fines two operators citing sanctions compliance failings

The UK’s regulator for the gambling sector, the Gambling Commission has issued a press release recording fines of £343,035 against Hillside (UK) Gaming ENC and £239,085 against Hillside (UK Sports) ENC.

Both companies operate under the Bet365 brand.

The fines in part relate to social responsibility failings, and partly to financial crime compliance failings including “failing to undertake financial sanctions checks on new customers prior to their first deposits”.

Latvia – criminal investigation into helicopter sale discontinued

It is being reported that the Latvian State Security Service (the VDD) has discontinued a criminal investigation started in November 2023 into the sale of a helicopter by a company indirectly co-owned by the designated person Petr Aven .

The sale had been reported to the VDD by a court-appointed bailiff on suspicion that the sale (which took place as part of an insolvency proceeding of the helicopter owning company) may be being used as a tool to circumvent the relevant asset freezes imposed by the EU.

The investigation included the questioning of a number of witnesses, and the freezing of the sale proceeds.

The VDD has concluded that the insolvency was proper, that the loan agreement which funded the helicopter purchase pre-dated the imposition of sanctions, and that the debts of the company could be discharged from the sale proceeds

United Kingdom – joint sanctions investigation with US into $20 billion crypto transactions

It is being reported that the UK and the US are undertaking a joint investigation into $20 billion in crypto currency transactions said to be in breach of Russian sanctions.

The payments under scrutiny flowed through the Moscow-based Garantex crypto exchange, utilizing the dollar-pegged stablecoin Tether.

The original story was published by Bloomberg, behind a paywall.

It is also being reported that the National Crime Agency and HM Treasury have provided no comment in relation to the investigation.

Germany – five charged in relation to the export of Siemens’ gas turbines to Crimea

It is being reported that the Hamburg Public Prosecutor’s Office (which does not publish press releases online) has charged five individuals on suspicion of exporting gas turbines to Crimea in breach of EU sanctions.

The gas turbines were manufactured by Siemens.

Of the five individuals, who have been under investigation since at least 2021 (see our earlier post), one remains an employee of Siemens. Four are German nationals and one is Swiss.

It is alleged that they were aware that the gas turbines being exported to Russia (then not prohibited) were destined for export and installation in Crimea in breach of the EU’s Crimea-specific sanctions.

Latvia – arrest on suspicion of breaching US sanctions

The US Department of Justice has issued a press release confirming that the Latvian authorities have arrested a 55-year old, Oleg Chistyakov.

He has been charged with multiple counts of breaching US sanctions and other offences as part of an alleged wider conspiracy with two other also-charged individuals to supply avionics materials to Russia in breach of US sanctions.

The man was arrested near Riga on 19 March pending proceedings for extradition to the United States.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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