It is being reported that he Lithuanian Customs Authority has today prevented the attempted export of two Tesla Cybertrucks valued at over €400,000 and has commenced a preliminary criminal investigation into the case.
The vehicles were being exported to Belarus, but the Customs Authority suspected that Russia was the intended final destination.
The drivers have been questioned and subsequently released.
It is being reported that the Irish authorities have barred the vessel, the Sarah M, from loading a cargo of livestock after the authorities became aware that the vessel was registered with the Russian Maritime Register of Shipping.
Under article 3ea of Regulation 833/2014, any vessel certified via the Russian Maritime Register of Shipping was, after 8 April 2023, barred from entry to EU ports.
On 24 April the Cologne District Court convicted a unnamed 52-year old individual of breaching the EU’s Russian sanctions by exporting 38 luxury cars and two motorcycles to Russia.
The cars were said to have totaled €4.7m in value, and were largely shipped to Russia via Belarus (where the goods are not prohibited exports). The prosecution was able to show through invoice addresses, the origins of payments and the ultimate Russian registrations of the vehicles that the individual was knowingly exporting to Russia.
The man was given a suspended two-year prison sentence, ordered to pay €20,000 and ordered to do 200 hours of community work.
It is unclear if the proceeds of the sales will be the subject of confiscation proceedings.
In terms of the sentence the court accepted as mitigating factors: i) that a previously legitimate business was made unlawful almost overnight; and ii) that the goods in question were not military or dual use. Given that these factors would be present in very many cases it is unclear why they were considered as mitigating.
LHV Pank in Estonia has today issued a press release to say that it intends to challenge a fine of €300,000 imposed on it by the FIU for breaching EU sanctions.
According to the press release the fines were imposed in relation to three incidents (two in 2022 and one in 2023) where the bank is accused of insufficiently rigorous due diligence and of permitting a transaction in breach of sanctions.
The press release does not state which sanctions regime the conduct relates to.
The bank says it takes regulatory compliance seriously and will challenge the fine in court.
It is being reported that on Friday three Russian nationals, aged 25, 25 and 18, were arrested in Finland on suspicion of the export of dual-use goods to Russia in breach of the EU’s sanctions.
The goods are reported to be electronic components such as sensors and lasers.
Further to our earlier post about the laying of charges against three individuals accused of exporting drones and drone parts to Russia in breach of the EU’s sanctions, the criminal trial of these individuals started on Friday.
The three are, between them, accused of 54 counts of breaching sanctions.
The conduct is alleged to have included exports to front companies in Kazakhstan, Kyrgyzstan, Hong Kong, Turkey and the United Arab Emirates, and of deceiving component suppliers based in the US by saying that Germany was to be the final destination of the products.
Following prominent reporting in Lithuania (e.g. here), the Lithuanian Customs Department has confirmed that it has commenced an investigation into the alleged activities of the company UAB Vilpra.
It is alleged that the company exported nearly €1m in air conditioning units to Belarus via Kyrgyzstan in breach of the EU’s sanctions.
The company is reported to deny the allegations and to have stated that it complies with all sanctions.
Malta’s Sanctions Monitoring Board (the “SMB”) has, for the first time , imposed a fine for breach of EU sanctions.
The company in question was ArabMillionaire Limited. The SMB publishes the names of all company’s fined more than €800, but the size of the fine is otherwise unspecified.
Also unspecified is the conduct giving rise to the fine, but it was said to have been identified “at the time of supervisory examination conducted between June and August 2020”.
It is unclear when the fine was issued as this information is not specified on the website and the Sanctions Monitoring Board has confirmed that such information is confidential.
ArabMillionaire operated as an online casino (trading as Playfooz.com) based in Dubai. It’s licence from the Malta Gaming Authority was suspended in October 2022, and then cancelled in October 2023.
It has been reported that alongside other regulatory failings part of the reason for these actions by the Malta Gaming Authority was non-compliance with money laundering and counter terrorist financing.
His Majesty’s Revenue and Customs, the body empowered to enforce export controls and trade sanctions in the UK, has today published two Notices to Exporters setting out compound penalties in relation to Russian sanctions and export control violations.
The first Notice, in relation to an unnamed company, relates to a penalty of £1,058,781.79 imposed for breaches of the UK’s Russian sanctions regulation.
No information is given as to the nature of the conduct, the value of the goods, or why a criminal prosecution was not brought. There is no mention of a confiscation of the proceeds of crime.
The second Notice relates to export control violations that are not described as breaches of the UK’s sanction. Again no information is given as to the names of the companies, the nature of the violations, or an indication given as to the confiscation of the proceeds of crime.
To quote the Notice:
“The 6 settlements made by UK companies were:
It is being reported today that the Berlin public prosecutor’s office is investigating whether the operations of the “Russian House” in Berlin are in breach of the EU’s Russian sanctions.
The “Russian House” is a scientific and cultural centre that was founded in the 1980s. It is being reported that the Zentralstelle für Sanktionsdurchsetzung (Central Office for Sanctions Enforcement) has concluded that is a “dependent branch” of the government body Rossotrudnichestvo, which has been designated in the EU since July 2022.
