Crimea – European Sanctions Enforcement

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.

April 5, 2024April 5, 2024 by Mark Handley

Germany – Ministry of Economic Affairs calls for investigation into alleged sanctions breaches relating to Mariupol reconstruction

The German Ministry of Economic Affairs and Climate Change is being quoted in the press as having called for an investigation by the relevant authorities into allegations that two German companies may be breaching the EU’s sanctions by providing material for the rebuilding of the occupied city of Mariupol.

The companies, Knauf and WKB Systems GmbH have both issued statements saying they comply with relevant sanctions.

The call for an investigation follows reports of the supply of construction material first published in Monitor.

March 29, 2024 by Mark Handley

Germany – five charged in relation to the export of Siemens’ gas turbines to Crimea

It is being reported that the Hamburg Public Prosecutor’s Office (which does not publish press releases online) has charged five individuals on suspicion of exporting gas turbines to Crimea in breach of EU sanctions.

The gas turbines were manufactured by Siemens.

Of the five individuals, who have been under investigation since at least 2021 (see our earlier post), one remains an employee of Siemens. Four are German nationals and one is Swiss.

It is alleged that they were aware that the gas turbines being exported to Russia (then not prohibited) were destined for export and installation in Crimea in breach of the EU’s Crimea-specific sanctions.

October 13, 2023January 11, 2024 by Mark Handley

Dutch fine four companies for sanctions breaches

The Dutch authorities have today secured settlement against four companies and eight individuals for breaching the EU’s Russian sanctions concerning Crimea through involvement in the export and machinery used in the construction of the Kerch Bridge.

The eight people were sentenced to community service ranging from 20 to 60 hours while the four companies paid fines totalling €160,000, with profits of €71,000 confiscated from one of the companies.

The case was resolved without a trial. The investigation commenced in 2017 after press reporting, and initially involved investigation into the activities of seven companies.

The names of the companies have not been published.

March 16, 2023January 11, 2024 by Mark Handley

Germany – company fined €1.3m for export of machinery to Russia

It has been reported today that a German company from Schleswig-Holstein has been convicted of breaching the EU’s sanctions against Russia for the illegal export of machinery that was used to help build the Kerch bridge.

The equipment was a hydraulic hammer used for driving in the piles for the bridge. The fine was imposed by the District Court in Kiel.

December 18, 2021March 29, 2024 by Mark Handley

Germany – five being investigated in relation to export of gas turbines to Crimea

It is being reported today that the Hamburg Public Prosecutor’s Office is currently investigating five individuals in relation to the export from Germany to Crimea of gas turbines manufactured by Siemens.

The broader investigation into the export of these turbines has been ongoing since 2018. See our earlier post.

Four of the individuals being investigated are German nationals, three of whom worked for Siemens in Russia, and the fifth is a Swiss national.

June 5, 2021January 11, 2024 by Mark Handley

Denmark – authorities investigating possible breaches with pump exports to Russia

It has been reported today in the German press that the Danish authorities are investigating allegations that the Danish company Grundfos may have exported pump equipment and machinery for use in the Crimea in breach of the EU’s sanctions.

August 14, 2019January 11, 2024 by Mark Handley

Lithuania – investigation ends into possible Crimean sanctions breaches

We reported in an earlier post that the Lithuanian authorities had commenced an investigation into three companies suspected of breaching the EU’s Crimean sanctions.

The Prosecutor’s Office has today announced the conclusion of the investigation with no charges being brought.

November 29, 2018January 10, 2024 by Mark Handley

Germany – investigation into alleged export of turbines to Crimea

The Hamburg Public Prosecutor has confirmed that it is currently investigating three Russian-based employees of Siemens in relation to alleged export of turbines to Crimea in breach of EU sanctions.

Siemens has confirmed that it is cooperating with the investigation, and stated that it exported the turbines for use in Russia and not in Crimea, and that the turbines were re-exported to Crimea without its knowledge.

July 7, 2018January 10, 2024 by Mark Handley

Germany – Hamburg Prosecutor investigates possible exports to Crimea

It has been reported that the Hamburg Prosecutor has commenced investigations into exports of titanium by Hansa Heavy Lift GmbH and Heinz Corleis KG.

The shipments are alleged to have been made to Crimea in breach of EU sanctions, although the original destination for the shipments was the port of Kavkaz in the Kerch Strait.