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.
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.
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.
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.
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.
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.
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.
Germany – investigation into purported share transfer
The travel company Tui has confirmed that the German authorities are investigating the circumstances behind the alleged transfer of a 34% stake in the company from Alexi Mordashov, now a designated person under the EU’s Russian sanctions, to his wife.
The allegation is that the transfer would be a breach of the asset freeze imposed upon Mordashov.
Dutch seizure of goods destined for North Korea
It was reported today that the Dutch port authorities in Rotterdam have seized 90,000 bottles of vodka allegedly destined for North Korea. The vessel was first to sail to China.
Such an export would be a breach of the EU’s sanctions against North Korea. The Dutch authorities have not commented on the source of the intelligence used to identify the alleged destination of the goods.
UN Panel of Experts investigating German firm re North Korean allegations
It has been reported today that the United Nations Panel of Experts on its North Korean sanctions is investigating possible sanctions breaches by the German company Müller + Partner GmbH.
The allegations relate to the shipment of luxury goods to North Korea and involve transshipment through Singapore.