Mark Handley – Page 3 – European Sanctions Enforcement

March 4, 2026March 4, 2026 by Mark Handley

Germany – convictions, €20m confiscation and 6 years in jail for luxury car exports to Russia

German Customs has announced the result in a criminal prosecution of two individuals charged with exporting 111 luxury cars to Russia in breach of EU sanctions.

See our earlier post relating to the raids conducted in 2024.

The vehicles were armored and classified as luxury under the EU sanctions.

One defendant pleaded guilty ahead of the trial, Inna W, and was given a 2-year suspended sentence. The main defendant, Andreas M, pleaded guilty mid way through the trial. He was given a six year jail term and has been in detention since his arrest in November 2024.

The defendants had further plans for the export of another 400 cars valued at €40m.

The evidence indicated an extensive procurement network of shell companies for purchasing the vehicles before export. Customers for the vehicles included various Russian state agencies and state-owned corporations.

The sentence included the confiscation of “approximately €20m” as the proceeds of crime said to be from the individuals and the companies involved.

March 2, 2026March 2, 2026 by Mark Handley

Denmark – container vessel detained for unclear flag status

The Danish Maritime Authority detained the container vessel the Nora on 20 February.

When the vessel first dropped anchor in Danish waters it was flying a Comorian flag. It is reported that upon investigations by the Danish government the Comorros registry then denied that the vessel was flagged there, leading to the Danish detention of the vessel.

The vessel, sanctioned by the US under its Iran sanctions and formerly named the Cerus, is reported to now be flying the flag of Iran. The same vessel is sanctioned by Ukraine under its Russian sanctions

March 2, 2026March 2, 2026 by Mark Handley

Belgium – criminal investigation opened after North Sea seizure of tanker “Ethera”

On Saturday night a combined operation of the Belgian and French military (see here and here) saw the seizure of the sanctioned “shadow fleet” tanker the Ethera in the North Sea.

The tanker has since been brought to Zeebrugge .

It is being reported that a criminal investigation has been opened, and it is alleged that the vessel was falsely claiming to have a Guinea flag.

The vessel’s captain, reported as a Russian national, has been questioned.

March 2, 2026March 2, 2026 by Mark Handley

Portugal – Public Prosecutor opens 26 investigations into Russian sanctions breaches

It is being reported that the Portuguese Public Prosecutor’s Office has opened 26 criminal investigations into possible Russian sanctions breaches since the start of the full-scale war in Ukraine.

No further information is provided as to the nature of the alleged offending or the current state of progress of those investigations.

It is also reported that the Security Intelligence Service (SIS) has “been monitoring and assessing presence in Portugal of elements connected, directly or indirectly with Vladimir Putin’s regime”.

March 2, 2026March 2, 2026 by Mark Handley

Switzerland – FINMA revokes licence of merchant bank for AML and sanctions compliance failures

The Swiss financial services regulator has put out a press release announcing its decision, taken several weeks ago, to revoke the licence of MBaer Merchant Bank AG for AML and sanctions compliance failings.

Initially the bank appealed this decision.

In the wake of the US regulator FinCEN announcing that it proposed to name the bank as a “financial institution of primary money laundering concern”, the bank has withdrawn the appeal against FINMA’s decision, and a liquidator has now been appointed to oversee the bank’s liquidation.

February 27, 2026February 27, 2026 by Mark Handley

United Kingdom – Office of Trade Sanctions Implementation has “about five cases close to conclusion”

In oral evidence given yesterday to the UK Parliament’s Business and Trade Subcommittee on Economic Security and Export Controls, the Minister for Trade stated (at around 16:18 in the video) in relation to the enforcement efforts at the Office of Trade Sanctions Implementation:

“We have got about five cases which are quite close to conclusion and could lead to substantial measures being taken. … Significant numbers of cases have been either closed because there is nothing to pursue, or have been referred directly to HMRC or soe other government departments to be able to take further action. … I think we have got pretty effective enforcement of our sanctions regime. I would argue that its more effective than any other country that I have yet seen. …

We’ve had 185 potential breaches that were reported, 5 as I say are at a late stage, 117 closed, 57 reported to HMRC“.

HMRC gave evidence that in 2025 it had had 42 referrals from OTSI, of which 19 are still under review, 8 concluded with no further action taken, 9 cases were linked to pre-existing HMRC investigations, 1 case was referred to the National Crime Agency, and 5 cases that were subject to a “de-confliction” process between OTSI and HMRC to work through enforcement responsibility.

HMRC also stated that it currently had 21 live criminal investigations for export control offences (note that as per an earlier previous post HMRC very recently stated it had 51 investigations in 2024/2025).

February 26, 2026February 26, 2026 by Mark Handley

Belgium – trial of three individuals for dual-use exports to Russia

Further to our post from last week regarding the prosecution of a Russian national in Belgium, for Russian sanctions breaches, it is now being reported that the prosecution is targeting three individuals.

The second suspect is the son of Viktor Labin (the first defendant). He is said to be currently living in Russia and the subject of an international arrest warrant.

The third suspect is currently out in bail.

The dual-use goods said to have been exported to Russia include iron, alumina, yttrium oxide, and explosive propagation detectors.

February 25, 2026February 25, 2026 by Mark Handley

Poland – six individuals charged with exporting drone-making machinery to Russia

Poland’s Internal Security Agency has issued a press release announcing that six individuals have been charged on suspicion of exporting machinery for the manufacture of drones to Russia, via Belarus, in breach of the EU’s sanctions.

The charges follow raids conducted on 18 February.

The individuals include 4 Belarus nationals and two Poles, and the machinery is described as a device for the production of integrated circuits.

Three of the suspects have been ordered to remain in custody, while the other three were released on bail subject to supervision and a ban on leaving Poland.

February 25, 2026February 25, 2026 by Mark Handley

France – in absentia trial of shadow tanker’s captain to start on Monday

Further to our earlier post on the French seizure of the “shadow fleet” tanker “Boracay” off western France in September 2025, it is now being reported that the trial of the captain is due to commence on Monday.

The trial is taking place in absentia, with the captain Chen Zhangjie – a Chinese national – not attending the trial in the town of Brest.

The charges allege that the Captain refused to comply with a lawful order from the French Navy to allow the inspection of the vessel.

Mr Zhangjie is represented in the trial, and it is being reported that the defence will include arguments that French law and French jurisdiction do not apply.

February 23, 2026February 24, 2026 by Mark Handley

Sweden – closed criminal investigation into alleged Russian funds transfers

Press reporting of a civil dispute between Sweden’s SEB Bank and certain Russian customers associated with Olga Pavlova, the Vice-Chair of Gazprom, and relating to attempts to transfer SEK 60 million, has revealed that the same transfers had been the subject of now-concluded a preliminary criminal investigation in Sweden.

It is unclear when the investigation took place, or the basis for the conclusion that no crime had been committed.