It is being reported that the Munich Prosecutor’s Office is investigating a number of businesses suspected of exporting 50 luxury cars to Russia in breach of the EU’s sanctions.
The cars are said to be valued at €10 million, including one car fitted with armour valued at €650,000.
The report alleges that the exports were done via third countries including Kazakhstan.
The website containing published judgments from the Estonian courts has published a number of judgments relating to convictions for sanctions offences.
1. Conviction of Adilov Mubariz on 23 July 2025
Decision: https://www.riigiteataja.ee/kohtulahendid/detailid.html?id=413740161
This individual was convicted of importing a few hundred Russian cigarettes into Estonia in breach of Article 3(i)(1) of EU Regulation 833/2014. This was a second offence.
The man was given a 3-month jail term, suspended for a 12-month probation period, and ordered to pay €798.42.
2. Conviction of Alus Grupp OÜ and Taras Potapov on 18 September 2025
Decision: https://www.riigiteataja.ee/kohtulahendid/detailid.html?id=419399125
Mr Popatov was convicted of aiding and abetting the provision of a service related to a prohibited strategic good, namely resonance testing machines used in the aviation and aerospace industries. These are dual use goods
The company Alus Grupp is a freight forwarder and Mr Popatov was one of its directors.
Another Estonian company and its director purchased the equipment from a supplier in Switzerland and sold them to Russian customers. The invoices showed that the intended ultimate customer was a Russian company. Alus Grupp and its director, being aware of the ultimate customer, on multiple occasions transported the goods to Kazakhstan. On other occasions an intermediary based in the UAE was inserted.
Mr Popatov was convicted. At the time of his conviction he had already served 5 months in jail. Pursuant to an agreement with the prosecution, the remainder of his 5-year sentence was suspended subject to a 5-year probation period. He was also ordered to pay a penalty of €2,215.
The company was also convicted and given a fine of €100,000 with a further €200,000 suspended for a 5-year probation period.
The judgment gives a detailed account of the exporting arrangements. It appears that other prosecutions of the actual exporting parties are ongoing.
3. Conviction of Anna Shmeljova on 14 October 2025
Decision: https://www.riigiteataja.ee/kohtulahendid/detailid.html?id=422536761
Ms Shmeljova was convicted of multiple offences including exporting luxury goods to Russia, namely clothing and hockey skates, and importing cigarettes.
She was ordered to pay €2,215, and given a five-month jail sentence suspended for a one year probation period.
4. Conviction of Marine Technics Baltia OÜ and Daniil Haitin on 5 November 2025
Decision: https://www.riigiteataja.ee/kohtulahendid/detailid.html?id=424933869
Mr Haitin was convicted of four offences and sentenced to 4 years and eleven months in jail. This sentence was suspended for a 5 year probation period. He was ordered to pay €2,215.
The company Marine Technics was convicted of two offences and ordered to pay €160,000, as well as €13,251.65.
The offences related to exports of gas generators, alternators, propulsion systems, thermal cameras and other equipment to Russia, including to military end-users such as Kalashnikov Concern, and the Russian Ministry of Defence.
False end-user certificates were prepared showing purported customers in Turkey.
The offending had taken place between 2017 and 2019.
The judgment notes that the court had prevented the merger or winding up of Marine Technics Baltia OÜ for the duration of the investigation in order to be able to secure a conviction and penalty.
The judgment gives a detailed account of the exporting arrangements.
It is being reported that seven residential and commercial premises in the Steinfurt area were raided on 20 November by Customs officers from Essen, Münster and Osnabrück.
The raids relate to allegations that three individuals (aged 57, 32 and 27) were involved in the export of 346 luxury cars to Russia via third countries in breach of the EU’s sanctions.
The exports are said to have taken place between 2022 and 2024 and have totalled approximately €20m in value.
The report adds that assets (including real estate, cars and bank accounts) valued at €20m have been seized as part of the investigation.
The trial has commenced in Berlin of Evgeniya P., Wladimir K. and Ekaterina M. Only Evgeniya P. is before the court, the others are being tried in absentia.
The three are alleged to have exported 257 luxury cars to Russia in breach of the EU’s sanctions with a value of €28.2m.
The exports are reported to have been completed via Belarus, Kyrgyzstan, Kazakhstan or Turkey.
Latvia’s FIU has announced the successful appeal of an earlier acquittal resulting in the conviction of an individual and company for providing services related to the tourism sector in Crimea – i.e. organizing tourist trips to Crimea.
The case remains subject to further appeal.
The company was fined €10,500 and the individual sentenced to 100 hours of community service.
The Regional State Administrative Agency for Southern Finland has issued a €540,000 fine to online retailer Verkkokauppa.com for failings under the Anti-Money Laundering Act. As one of the compliance requirements under the act is compliance with EU and UN sanctions, some of the compliance failings identified included a lack of sanctions screening for customers, including high risk customers seeking to pay cash.
The full Decision is here.
My thanks to Aleksi Pursiainen for mentioning this case on the most recent monthly sanctions webinar hosted by the Network for Financial Crime Prevention.
This story is actually from September 2024, and was previously missed by this blog.
Three individuals were convicted of 430 separate violations of the German Foreign Trade Act by way of exports of nearly 500 luxury cars to Russia in breach of sanctions.
The individuals falsely declared the exports were for Belarus.
Two of the individuals were each sentenced to 6 years in jail, and the third to 4 years.
In addition €30m in the gross proceeds of the sales were confiscated.
German Customs has issued a 16 July Press release relating to raids and an investigation into alleged exports of luxury cars worth €3.4m to Russia.
The investigation was prompted by a suspicious activity report made to Germany’s FIU.
The investigation involves Hamburg Customs Investigation Office and the Hanover Public Prosecutor’s Office.
It is alleged that the exporter made false customs declarations purporting to indicate that the cars were destined for non-sanctioned countries, while the investigators determined that the cars were all subsequently registered in Russia.
It is being reported, that after pleading guilty to charges of exporting dual-use goods to Russian in breach of the EU’s sanctions, a 20-year old student has been given a 14-month suspended sentence.
The student exported dual-use drones, laptops, computer processors, smartphones and laser rangefinders valued at nearly €74,000.
Further to our earlier post, two other accomplices were also arrested in May 2024 and have been investigated for exports valued at another €70,000.
As well as pleading guilty the student is said to have co-operated with the investigation. The outcome relating to the other two defendants is not yet known.
It has been reported (here, behind a paywall), that CONSOB (the Italian stock exchange regulator) has been investigating comments made by luxury goods manufacturer Brunello Cucinelli in relation to the company’s compliance with the EU’s Russian sanctions.
Last week several short sellers of Brunello Cucinelli stock issued reports alleging that the company’s stores remained open in Russia and continued to sell prohibited luxury goods. Despite denials from the company, these reports led to a sharp reduction in the price of the shares and trading in the stock was suspended.
The CONSOB investigation is primarily focussed on the question of whether the company has misled the market in its public comments and denials.
