Consumer Products and Services – Page 4 – European Sanctions Enforcement

March 5, 2024May 3, 2024 by Mark Handley

Germany – investigation into garage company’s alleged circumvention of Belarus sanctions

The German company Hörmann, which manufactures garages doors, gates and other products, is reported to be under investigation by the Public Prosecutor’s office in Germany. Also being investigated are the Hörmann subsidiaries Alutech Group based in Minsk and Eluteck Investments Limited based in Cyprus.

The company is reported to have denied the allegations which were first by WirtschaftsWoche in January 2024.

The allegations relate to the alleged importation of sanctioned goods from Belarus via Russia for the time when the products in question were prohibited from Belarus but were not prohibited imports from Russia.

January 18, 2024 by Mark Handley

Latvia – importer referred to criminal authorities

It has been reported today that the Latvian National Regional Development Agency (the “VRAA”) has referred the Latvian company LLC Lanekss to the criminal authorities for investigation.

The allegations arise out of LLC Lanekss being a seller of products on Latvia’s electronic public procurement sale platform – the EIS.

The Latvian state broadcaster (LTV) purchased tea through the EIS which when delivered was stated to have been manufactured in Russia.

As article 5k of EU regulation 833/2014 prohibits the award of a contract within the scope of the EU’s Public Procurement legislation to a Russian company or individual, or a company more than 50% owned by a Russian company or individual, the VRAA has referred the case to law enforcement for investigation.

December 20, 2023January 10, 2024 by Mark Handley

Germany – prosecutors seek confiscation of €720 million

It has been reported that Federal Prosecutors in Germany have applied to confiscate €720 million in frozen assets belonging to Russia’s National Securities Depository.

After the NSD had been designated it had sought to move the funds and made transfer requests to JP Morgan and Commerzbank which refused to proceed with the transfer. As such the prosecutors are seeking to have the funds treated as the proceeds of crime and so confiscatable under ordinary anti-money laundering rules.

November 14, 2023January 11, 2024 by Mark Handley

Cyprus – investigation into purported divestiture by designated person

Further to our earlier post about the German authorities investigating a share transfer suspected to have been carried out in breach of an asset freeze imposed on Alexei Mordashov, the Cypriot authorities have confirmed that, following a report from the German authorities, they have commenced their own investigation.

November 7, 2023January 11, 2024 by Mark Handley

Lithuania – investigation commenced into car exports

Following a report by the Lithuanian state-owned railway company to the Prosecutor General’s Office, an investigation has been commenced into suspected illegal exports of goods to Russia.

The railway announced the suspension of the transport of luxury cars as part of its efforts to reduce the risk of sanctions breaches.

The report to the Prosecutor was focussed on the activities of four companies and the transshipment of cars to Russia via other neighbouring countries.

October 12, 2023January 11, 2024 by Mark Handley

Belgium – raids seize $1.5m in diamonds

The Antwerp Public Prosecutor’s Office has conducted three raids and seized $1.5m in diamonds suspected to have been the result of circumvention of the EU’s Russian sanctions.

A criminal investigation has been launched and a court-appointed expert been put in place.

September 18, 2023February 27, 2024 by Mark Handley

Latvia – two prosecutions for Russian and Belarusian sanctions breaches

The Latvian State Security Service (VDD) has announced that it has forwarded a case to the Prosecution Service for the initiation of criminal proceedings relating to the export of luxury goods to Russian in breach of EU sanctions.

The luxury good in question was a car.

In another announcement today, the VDD has announced the referral of another case for prosecution relating to the import of iron and steel products from Belarus in breach of EU sanctions.

June 26, 2023January 11, 2024 by Mark Handley

Norway issues first fine for breaching Russian sanctions

It was reported today that the Norwegian authorities have imposed their first fine for breaches of sanctions against Russia.

The fine was NOK 50,000 being the profit from the unlawful sale of a car to a Russian customer in breach of Norway’s sanctions against the export of luxury goods.

September 27, 2022March 15, 2024 by Mark Handley

UK’s OFSI imposes EU Russian sanctions civil penalty

OFSI today announced that it had imposed a civil penalty for breach of the UK’s Russian sanctions.

The penalty notice is available here.

The fine was imposed on Hong Kong International Wine and Spirits Competition Limited (HKIWS), and was just £30,000.

The conduct in question was the receipt of funds and goods from a designated person. The goods in question were wine bottles. HKIWS was also found to have made “economic resources” available to a designated person. This was in the form of publicity, and illustrates OFSI’s wide view of what amounts to the making available of an economic resource.

May 19, 2022March 15, 2024 by Mark Handley

UK’s OFSI imposes fine for breach of Syrian sanctions

OFSI has today announced a civil penalty of £15,000 against Tracerco Limited for a breach of the EU’s Syrian sanctions.

OFSI’s Penalty Notice is available here.

The breaches related to airline tickets valued at £2,956.43 purchased for a Tracerco employee through a travel agency. The airline in question, however, was Syrian Arab Airlines which is designated under the EU’s sanctions.

OFSI, therefore, concluded that purchasing the tickets amounted to making funds available to a designated person. OFSI also commented, in relation to the requirement that it showed Tracerco either knew or had reasonable grounds to suspect that the transactions would breach the regulations, that operating in the region was sufficient to satisfy this requirement.