Germany – European Sanctions Enforcement

December 5, 2024December 5, 2024 by Mark Handley

Germany – sanctions investigation into alleged exports to Belarus by politician’s company

It is being reported that a German customs investigation has been commenced into the business affairs Jörg Dornau who is an MP in the Saxon state parliament.

It is alleged that he arranged for the export of machinery to Belarus in breach of EU trade sanctions.

It is alleged that the goods were first sent to Kazakhstan before then being on-shipped to a company in which the politician has interests in Belarus called Zybulka-Bel.

The press article mentions that before any prosecution could be brought the MP’s immunity would need to first be lifted.

November 25, 2024November 25, 2024 by Mark Handley

Germany – three individuals in custody for exporting nearly 100 cars to Russia in breach of sanctions

It is being reported that the Mannheim Public Prosecutor’s Office has three people in custody on suspicion of exporting luxury cars to Russia in breach of EU sanctions.

A car manufacturer made a suspicious activity report regarding the exporter, which led to the investigation.

The three individuals are a married couple who run two car dealerships and a third person who was an employee.

It is alleged that they exported nearly 100 cars to Russia via third countries with a total value of nearly €15 million.

As part of the raids, the prosecutors also secured the freezing of €1.3 million.

November 21, 2024 by Mark Handley

Germany – prosecution of two individuals for attempted exports of luxury goods

The Stuttgart Customs Investigation Office has commenced criminal proceedings against two women aged 64 and 25 for suspected attempts to export luxury goods to Russia.

The women were stopped at Stuttgart Airport on their way to Russia and had €114,000 worth of luxury goods in their luggage.

Further investigation revealed that the two had sipped 7 consignments of goods to Russia, and one of those was stopped with a further €12,000 worth of luxury goods.

The goods have been seized and the women were required to agree to a bond of €105,000 before being allowed to continue their travel.

November 15, 2024November 28, 2024 by Mark Handley

European sanctions enforcement: the custodial sentences

Although one of the filters on this blog is “custodial sentence”, I thought it might be helpful to collect all the examples in one place.

As such, here is the full list of custodial sentences that have been imposed across Europe for sanctions offences since 2017. Please note this excludes suspended sentences.

2017:

Netherlands – 2 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2017/03/14/netherlands-two-year-sentence-for-breach-of-al-qaida-sanctions/
Netherlands – 19 years (although this sentence included numerous other offences): https://blogs.duanemorris.com/europeansanctionsenforcement/2017/04/21/netherlands-19-year-jail-term-upheld-on-appeal/
Italy – 2 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2017/05/03/italy-two-year-sentence-for-arms-exports-to-libya-and-iran/
Italy – two individuals given 3 years and 8 months and 3 years and 6 months respectively: https://blogs.duanemorris.com/europeansanctionsenforcement/2017/07/13/italy-sentences-for-arms-exports-to-iran-and-libya/
Netherlands – 16 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2017/09/04/netherlands-fine-and-custodial-sentence-imposed-for-breach-of-iran-sanctions/

2018:

United Kingdom – 2.5 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2018/11/22/uk-three-convicted-of-exporting-military-goods-to-iran/

2019:

Belgium – 12 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2019/02/07/belgium-convictions-for-breaching-syrian-sanctions/
Netherlands – two individuals given 1 month each: https://blogs.duanemorris.com/europeansanctionsenforcement/2019/02/18/netherlands-two-companies-and-three-individuals-convicted-of-iran-exports/
Netherlands – 12 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2019/11/05/netherlands-conviction-for-breach-of-isis-sanctions-2/

2020:

Germany – 7 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2020/01/09/germany-seven-year-sentence-for/

2021:

Germany – 3 years and 9 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2021/03/04/germany-convictions-and-fines-for-russian-exports/

2022:

Netherlands – 6 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2022/02/04/netherlands-6-month-custodial-sentence/
Netherlands – 1 year and six months: https://blogs.duanemorris.com/europeansanctionsenforcement/2022/06/28/netherlands-18-month-sentence-for-exports-to-iran/
Netherlands – 2 years and 6 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2022/08/31/netherlands-30-month-custodial-sentence-for-breach-of-isis-sanctions/
Germany – 1 year and 7 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2022/11/17/germany-conviction-for-importing-timber-from-myanmar-referred-to-cjeu/

2023:

Germany – 5 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2023/08/30/germany-conviction-for-exporting-drone-parts-to-russia/
Netherlands – 1 year and 6 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2023/11/01/netherlands-custodial-sentence-and-corporate-fine/

2024:

Finland – 40 days: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/02/14/finland-conviction-of-russian-national-for-breach-of-the-eu-travel-ban/
Netherlands – 4 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/04/19/netherlands-four-month-prison-sentence-for-breach-of-isis-sanctions/
Germany – 6 years and 9 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/07/18/germany-two-individuals-convicted-of-electronics-exports-to-russia/
Netherlands – 4 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/09/12/netherlands-conviction-for-breach-of-isis-sanctions-upheld-by-court-of-appeal/
Netherlands – 2 years and 8 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/10/07/netherlands-two-years-and-eight-months-sentence-for-exporting-sanctioned-goods-to-russian-airlines/
Germany – 7 years: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/11/08/germany-seven-year-sentence-for-exports-of-military-and-dual-use-goods-to-russia-and-confiscation-of-profits/
Netherlands – 1 year and 3 months: https://blogs.duanemorris.com/europeansanctionsenforcement/2024/11/11/netherlands-conviction-and-confiscation-for-exporting-sanctioned-goods-to-russian-companies/

Overall the figures are dominated by the Netherlands and Germany with approximately 68 of the 80 years of sentences between them. Indeed, as the graph below demonstrates, other than Finland’s 40-day sentence for breaching a travel ban, the Netherlands and Germany are the only European countries to have sent someone to prison for sanctions offences since 2019.

November 8, 2024November 8, 2024 by Mark Handley

Germany – seven year sentence for exports of military and dual-use goods to Russia and confiscation of profits

It is being reported that the Higher Regional Court in Stuttgart has convicted Ulli S, a 56 year old man, of breaches of the EU sanctions against Russia and the German foreign trade law.

As per our earlier posts, the man was arrested in August 2023, and had been charged in November 2023.

The exports were of machinery which can be used for the manufacture of sniper rifles and other weapons. Some of the exports were sent to Russia via Switzerland and others via Lithuania, while the customs data was falsified.

The contracts for the supply of the goods had been entered into in 2015.

The individual is said to have profited by 2.1 million euros, while a Swiss holding company benefitted by roughly 3 million euros. According to Der Spiegel these sums have been confiscated.

The trial lasted several months and is subject to a possible appeal.

October 31, 2024October 31, 2024 by Mark Handley

Germany – raids related to luxury car exports of €10m to Russia

German Customs has issued a press release (actually dated 18 September but not spotted until now) reporting on an investigation and raids of several premises in the Aschaffenburg area.

The investigation by Essen Customs Investigation Office and the Würzburg Public Prosecutor’s Office relates to alleged exports of luxury cars to Russia valued at over €10 million.

As part of the raids evidence was collected, while cars valued at over €1.5m and bank accounts with over €1m were also seized.

October 30, 2024October 31, 2024 by Mark Handley

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.

October 9, 2024October 9, 2024 by Mark Handley

Germany – raids and investigation relating to sanctioned car exports

It is being reported (here and here) that the German authorities have conducted raids on business and residential premises in the town of Königswinter in relation to a criminal investigation into the alleged exports of luxury cars to Russia shipped through third countries.

The raids are said to have taken place in late September and a criminal case has been opened. Cars, cash and evidence were all seized as part of the raids.

The sales are alleged to have totalled more than €4 million.

September 30, 2024 by Mark Handley

Germany – two people arrested for providing access to sanctioned Russian broadcasters

It is being reported that German authorities in the city of Karlsruhe have arrested two individuals. The individuals were husband who is a German national and wife of Ukrainian nationality.

It is alleged that they made available internet access to the sanctioned broadcasting channels Rossiya-1 and Russia Today. EU sanctions prohibit for a person “to broadcast or to enable, facilitate or otherwise contribute to broadcast” of these channels.

Raids on the couple’s home gathered evidence and €40,000. The authorities also obtained a freezing order over a bank account containing €120,000.

September 26, 2024September 26, 2024 by Mark Handley

Germany – seizure of 47 crypto exchanges being used for sanctions circumvention

Germany’s Federal Criminal Police have seized the infrastructure of 47 Russian-language no-KYC cryptocurrency exchanges.

The website announcing the action (called “Operation Final Exchange”) states: “We have found their servers and seized them – development servers, production servers, backup servers. We have their data – and therefore we have your data. Transactions, registration data, IP addresses

Our search for traces begins. See you soon“.

It is being reported that the seizures, while certainly targeting a range of financial crimes, were also driven by the use of these exchanges as a means of circumventing sanctions, particularly by designated Russian banks.

It is likely that this Operation Final Exchange will generate substantive financial intelligence and further enforcement actions.