Infrastructure and Transport (including energy) – European Sanctions Enforcement

August 23, 2024 by Mark Handley

United Kingdom – 12 oil price cap investigations by OFSI

It is being reported (here albeit behind a paywall), that as of April 2024 the UK’s Office of Financial Sanctions Implementation (OFSI) had twelve ongoing investigations relating to possible breaches of the oil price cap imposed as part of the UK’s sanctions against Russia.

The information comes from a Freedom of Information Act request made by the publication Trade Winds. The response is not available on OFSI’s website.

OFSI is also reported to have confirmed that 9 of the twelve investigations were discontinued in April 2024 with no further action taken.

No information was provided on the current status of the other three investigations that were live in April, or whether any further investigations have been commenced since April.

As noted in our previous post from May, at that stage HM Treasury had stated that it “a number of investigations” then ongoing into alleged oil price cap breaches.

August 16, 2024 by Mark Handley

Lithuania – company fined over €1.2m for importing Russian coal and rubber from designated persons

The Customs Office of Lithuania has issued a press release confirming that it has imposed a fine of €1,274,960 on an unnamed Lithuanian company for the importation of both coal and rubber from Russia in breach of EU sanctions.

The Russian suppliers are themselves said to be the subject of sanctions, but have not been named.

The enforcement action was conducted by the Business Entity Inspections Department of the Kaunas Region.

August 14, 2024 by Mark Handley

Germany – raids in Berlin as part of sanctions investigations

It is being reported (and here) that on Tuesday the Zentralstelle für Sanktionsdurchsetzung (Central Office for Sanctions Enforcement) conducted raids with 100 officers to enforce a District Court judgment on premises in the Tempelhof-Schöneberg region of Berlin.

The reports also state that the subjects of the raids were two logistics companies, said to be from Russia.

No details of the alleged conduct or Russian sanctions breaches giving rise to the raids has been released.

August 14, 2024 by Mark Handley

European Public Prosecutor’s Office conducts Russian sanctions-related raid in Bulgaria

It is being reported (here and here) that the European Public Prosecutor’s Office has conducted a raid on the premises of Bulgartransgaz in Bulgaria.

The investigation is said to concern whether natural gas supplied via the Turkish company Botas may include gas of Russian origin and be being done in circumvention of the EU’s Russian sanctions.

This would be the first public and specific investigation by the European Public Prosecutor’s Office into allegation of sanctions breaches.

August 7, 2024 by Mark Handley

Lithuania – company fined €13.6m for sanctioned exports to Russia

The Lithuanian Customs Service has issued a press release regarding a fine of €13,618,175 imposed on a company.

The company had exported vehicles to Russia through third countries Belarus, Kazakhstan and Turkey.

Six tractor semi-trailers were also confiscated.

Although the Customs press release does not name the company, press reports have identified the company as Biovarda based in Vilnius.

The press release also states, opaquely, that “After the Lithuanian customs started to apply stricter inspection measures, it is not the first time that such sanctions have been applied to companies for violations of the Law on International Sanctions”. No ore detail on these other enforcements was provided.

July 31, 2024 by Mark Handley

UK – investigation by HMRC into potential Airbus violations of export controls

Reuters has reported that Airbus’s most recent half-yearly financial statements include reference to an ongoing investigation by HMRC.

Under the heading “HMRC Export Control Investigation”, the financial company records: “Airbus is fully cooperating with an investigation by the Revenue and Customs Authority of the United Kingdom into possible violations of the United Kingdom’s export control rules. It is not expected that the resolution of this matter will have a material financial impact“.

No further details are provided.

July 15, 2024July 15, 2024 by Mark Handley

Netherlands – corporate fine and confiscation for company’s role in building Kerch bridge

The Dutch Public Prosecution Service has issued a press release relating to a settlement with the company Dieseko Group BV for its role in supplying equipment and expertise for the construction of the Kerch bridge in breach of the EU’s sanctions in relation to Crimea.

The prohibited activities took place during 2015 to 2016 and were uncovered through press reporting in 2017. An investigation was commenced in 2017 (see our earlier post) and then expanded to include Dieseko (see our earlier post).

The company exported equipment and machinery (via Finland but with the knowledge that the goods were to go to Crimea) and supplied staff to the site to provide technical assistance.

The company was given the maximum available fine per each of the three counts with a discount for its cooperation with the investigation for a fine of €180,000. The cooperation includes document production and making staff available for interview.

The company has also had its entire “gain” from its work on the bridge confiscated of €1.6m. It is not entirely clear if this is gross or net profits.

The company has put in place remediation and compliance measures. The senior management of the company were interviewed as part of the investigation but will not be prosecuted as two have since passed away and one is seriously ill.

For the Statement of Facts see here.

For the Settlement Agreement see here (in Dutch).

The Dutch version of the Press Release includes comment that the Dutch intend to prosecute another company and several individuals for their involvement in the building of the Kerch bridge.

July 11, 2024July 12, 2024 by Mark Handley

France – Russian vessel barred from entering the port of Brest

It is being reported that the French port of Brest has barred the Russian vessel Shtandart from entering thereby enforcing the EU’s prohibition on Russian vessel entering EU ports.

The vessel has been re-flagged to the Cook Islands but remains operated by Russians. It is a modern replica of a frigate of Tsar Peter the Great which was sailing to Brest to take part in the Maritime Festival.

The same report notes that the vessel had previously been in another French port at La Rochelle.

July 4, 2024 by Mark Handley

Germany – fine for the captain of distressed vessel which took Russian timber into German port

Further to our earlier posts about the detention and subsequent release of the vessel the Atlantic Navigator II which carried, amongst other cargo, birch timber of Russian origin into the German port of Rostock.

It is now being reported that the Captain of the vessel has received a fine which he was directed by the Public Prosecutor’s Office to pay to the charity Human Rights Watch.

The fine was €8,000, which no doubt reflects the fact that the vessel only entered German waters after experiencing technical difficulties.

July 1, 2024July 10, 2024 by Mark Handley

Germany – raids and arrests for suspected exports of luxury cars to Russia in breach of sanctions

On Friday the Customs office in Frankfurt raided and searched 24 residential and business premises mostly in Offenbach am Main and Aschaffenburg although Customs said the network extended across Germany. Four individuals were arrested. The actions were part of an investigation into the suspected export of luxury cars to Russia in breach of EU sanctions.

The individuals arrested were aged between 39 and 44 with one woman and three men.

The allegation is that 170 luxury cars had been exported since 2022.

Five cars were seized as part of the raids along with evidence and €300,000 in cash. In addition a freezing order was obtained over €13.3m in bank accounts said to be the profits from the enterprise.

The German authorities have been particularly active in enforcement related to luxury cars of late: