Netherlands – two sanctions judgments: i) individual given 3 years prison sentence; and ii) confiscation of €1m in unlawful profits

The Dutch courts have published two sanctions judgments.

In the first case, the District court of Rotterdam has sentenced an individual to three years in jail.

The individual was convicted for providing technical assistance to a person in Russia or for use in Russia of different computer files containing information on the manufacture of microchips. The files were shares by Google Drive and Telegram between January 2023 and August 2024.

The defendant was acquitted of charges of physically taking similar files to Russia on USB sticks.

On sentencing the judgment stated:

Providing advice to and sharing technology with Russia is extremely serious. It can contribute to strengthening military or strategic capabilities of that country, which has an impact on Ukraine and can indirectly affect international security and stability. It is therefore a serious offence. … The nature and seriousness of the facts justify a prison sentence of considerable duration. The fact that the files would contain outdated information is irrelevant because this information can be of great value to a country with a (much) lower level of knowledge. It must be prevented that a country at war can benefit in any way from advanced technological knowledge. After all, for that reason, an extensive package of sanctions has also been agreed against Russia, among others“.

In the second case, the District Court of Amsterdam has issued an order confiscating €1,013,956.00.

The unnamed corporate defendant had been provided goods and services in relation to the construction of the Kirch Bridge, and had been convicted on 28 November 2024 (our previous post here), with a fine of €120,000 imposed.

The court calculated that the gross revenue obtained in breach of sanctions was €2,711,085, but allowed certain costs including internal time incurred and the cost of insurance resulting in a final confiscation of €1,013,956.

The effect of this is that revenue of nearly €1.7m obtained in breach of the EU’s sanctions was retained by the convicted company.

Finland – Customs investigation into suspected electronics exports to Russia

On Thursday Finland’s Customs announced details of an ongoing investigation into a suspected aggravated offence of breaching the EU’s sanctions. This is the most serious category of offence under Finnish law.

Customs are investigating a company from eastern Finland alleged to have sold electronic parts and components (semiconductors, microchips, processors and connectors) to Russia valued at approximately €2.7m.

The two main suspects are a father and son, with the son currently serving in the Russian army.

The products are alleged to have been shipped via several different routes including via other EU countries, Hong Kong, direct to Russia, and others seemingly collected in Finland.

A tax investigation is also under way.

Prior to 2022 the company’s business is said to have been dedicated to tourism and the sale of art.

France – TV regulator orders satellite provider to stop broadcasting sanctioned Russian channels

The French media regulator, Arcom, has issued an order to Eutelsat ordering it to cease the broadcasting of two channels owned or controlled by JSC National Media Group which is a designated person under the EU’s Russian sanctions.

The channels are STS and Kanal 5.

Earlier reports had suggested that Arcom might impose a fine on Eutelsat, but no fine was imposed.

Latvia – prosecutions brought against four for exports to Russia

It is being reported that Latvia’s State Security Service has referred four individuals for prosecution for alleged exports of satellite communications equipment for the Russian military in breach of EU sanctions and other Latvian laws.

The investigation is ongoing and it is reported that other individuals are suspected of being involved.

The goods exported were Starlink Mini satellite communication systems.

Netherlands – company and director suspected of exporting computing equipment to Russia

The Dutch FIOD has issued a press release stating that a 57-year old man has been arrested and that the individual and a company are suspected of exporting US$24 million in computer motherboards and graphics cards to Russian customers in breach of the EU’s sanctions against Russia.

Residential and commercial premises were raided, and bank accounts seized.

The exports are alleged to have been done through Hong Kong, the United Arab Emirates and Cyprus

Lithuania – raids and 10 arrested for suspected prohibited exports to Russia

Lithuania’s State Security Department has issued a press release detailing raids and arrests carried out on 14 January of this year involving ten suspects.

The investigation was said to have been a collaborative effort also involving Estonia and Latvia.

The principal suspect is a Russian national who is alleged to have orchestrated the supply of high-tech equipment manufactured in Lithuania to Russian customers related to the Russian defence and security industry. He remains in custody. The other suspects have been released subject to conditions.

A pre-trial investigation has been commenced by the Vilnius Regional Prosecutor’s Office in relation to the suspects.

Netherlands – prosecution of Russian national

It is being reported that a Russian national, who was formerly an employee of chip manufacturer ASML, and of Mapper Lithography, is being prosecuted for both breach of EU sanctions and for theft of trade secrets.

The man is currently in custody. As part of the prosecution the individual has been banned from travel to the Netherlands for 20 years.

The man is alleged to have stolen documents, such as microchip manuals and passed those to Russian recipients to aid microchip production.

Latvia – 2-year jail sentence for breaching designated person’s asset freeze

It is being reported that the Kurzeme District Court has sentenced the Latvian citizen Valentins Rozencovs, to 2 years in jail.

The sentence was that sought by the prosecution, although the case is subject to appeal.

Rozencovs was the editor-in-chief of Sputnik Latvija which is the Latvian branch of Sputnik which operates under the umbrella of a Russian state-owned media company Rossiya Segodnya.

The Director General of Rossiya Segodnya is a designated person (Dmitry Kiselyov), and the prosecution was based on the premise that the provision of services by Valentins Rozencovs was making economic resources available to a designated person, and that Sputnik Latvija was “owned or controlled” by Kiselyov.

This is the latest in a series of prosecutions relating to Rossiya Segodnya – see our earlier posts, here and here.

Netherlands – conviction and confiscation for exporting sanctioned goods to Russian companies

The Rotterdam District Court has issued two judgments relating to the conviction and sentencing of an individual for exporting computer goods and software destined for Russian companies via intermediaries in Kazakhstan, Kyrgyzstan and Uzbekistan.

According to the judgment convicting the individual, the man had been selling computer equipment to two Russian companies prior to 2022. After the goods in questions became sanctioned, a fact he was made aware of by his customs agent, the man directed the exports to affiliates of his Russian customers in Kazakhstan, Kyrgyzstan and Uzbekistan. All the communications, however, remained with the Russian companies.

In an attempt to cover his tracks the man forged a contract between his company and the central Asian entities and provided this in response to questions from his bank.

The court convicted him of the charges, including forgery, holding that the EU Regulations did not require proof that the goods were actually delivered to Russia.

The exports in question were of thousands of items which were either dual-use or luxury goods and were predominantly computer equipment and software.

At sentencing the court made a number of comments:

  • firstly that “the court looked at penalties imposed in comparable cases, although there is not much comparative material”; and
  • the court’s aim in sentencing was to “give the suspect a good rap on the knuckles”, but not to hinder the man’s ability to continue operating his business.

The man was given a custodial sentence equivalent to the length of his time served in pre-trial detention (450 days), a suspended sentence of just over 11 months, suspended for two years, and a community service order of 240 hours.

Goods which had been seized during the investigation were returned to him.

The second judgment related to confiscation of the proceeds of crime from the man.

The court calculated that the gross proceeds of the crimes were €1,924,579, from which the court deducted €1,626,269 in what it described as “deductible costs”, leaving a final figure for confiscation of €298,310 which the court considered to be the company’s “profit”. This was the amount the man was ordered to pay by way of confiscation order.

The judgment does not record the Court (or the prosecution) giving consideration to the recent CJEU judgment which upheld a confiscation of the gross proceeds of crime.

Germany – arrest and raids for alleged exports to Russia

It is being reported that a 55-year old man has been arrested in Germany on suspicion of violating the Foreign Trade Act and EU sanctions against Russia.

Six properties were raided and searched in Nuremberg, Frankfurt am Main, Gross-Umstadt and at Frankfurt-Hahn Airport by the Essen Customs and the Frankfurt Public Prosecutor’s Office.

The man, who is a German and Russian national, is alleged to have procured and exported to Russia satellite antennas and sonars for deep-sea use through a company in Germany.

The press release from Essen Customs is here.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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