Russia – Page 26 – European Sanctions Enforcement

June 25, 2021March 15, 2024 by Mark Handley

UK: OFSI’s second penalty for the day – Russian sanctions

OFSI has today issued a second penalty for breach of the EU’s Russian sanctions, again using its civil enforcement powers.

The penalty notice is available here.

The penalty, of £36,393.45, was imposed on Clear Junction Limited. The transactions in this case are the same as those relating to TransferGo, although OFSI makes clear that it was Clear Junction which reported the transactions. It is noteworthy that some of the impugned transactions took place after the first report to OFSI.

OFSI’s notice also makes the point that the breach here was of the EU’s Russian sanctions, and that post-Brexit OFSI will continue to investigate breaches of the EU’s regulations that may have taken place before Brexit.

June 25, 2021March 15, 2024 by Mark Handley

UK – OFSI imposes civil penalty for sanctions breaches

Today OFSI announced it had imposed a £50,000 financial penalty on TransferGo in the latest example of the use of its civil enforcement powers.

OFSI’s penalty notice is available here.

The fine was imposed in relation to 16 transactions over nearly 2 years valued at just £7,674.77 through which funds were made available Russian National Commercial Bank, which is a designated person under the EU’s Russian sanctions.

TransferGo did not self report but did cooperate with the investigation.

OFSI’s notice makes clear that the RNCB was not the intended beneficiary of the transactions, rather the recipients of the transfers were accounts held by non-designated persons with RNCB. OFSI has made clear that as funds held in bank accounts are legally held by the banks, that these transfers all amounted to making funds available to RNCB

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.

May 18, 2021March 6, 2024 by Mark Handley

Germany – arrests for dual-use exports to Russia

The Federal Prosecutor’s Office has issued a press release announcing the arrest of an individual Alexander S on charges of exporting dual-use goods to military recipients in Russian in breach of EU sanctions.

Although the press release does not state as much, it is likely that this individual is the same as is already facing charges relating to earlier exports.

The arrest warrant alleges the export of dual-use high-quality machine tools to an end customer in the Russian defence sector.

March 4, 2021January 11, 2024 by Mark Handley

Germany – convictions and fines for Russian exports

Further to our earlier post, it has been reported today that the Higher Regional Court in Hamburg has sentenced two men to prison for supplying machine tools to a Russian arms company.

The first defendant received a sentence of three years and nine months. In addition, almost €8 million in profits from the sale of the machinery will be confiscated

The second defendant was sentenced to two years’ probation for aiding and abetting with a payment of €150,000 to secure that probation. A further €184,000 are to be confiscated.

December 4, 2020January 11, 2024 by Mark Handley

Latvia – raids as part of investigation of seven individuals

It has been reported today that the Latvian authorities have conducted court-ordered raids on premises in Riga and elsewhere as part of the ongoing criminal investigation of seven individuals suspected of breaching the EU’s Russian sanctions.

October 20, 2020March 6, 2024 by Mark Handley

Germany – charges for dual-use exports to Russia

Further to our earlier post, the German Federal Prosecutor’s Office has issued a press release confirming that charges have now been laid against two individuals – Alexander S. and Alexander O.

The allegations relate to the export of machine tool to a Russian state-owned arms company valued at €8 million between January 2016 and January 2018.

The customer is also said to be a designated person under EU regulation 269/2014.

February 18, 2020March 15, 2024 by Mark Handley

UK: OFSI imposes £20.4m civil penalty

Today the UK’s Office of Financial Sanctions Implementation imposed a civil penalty of £20,471,809.83 on Standard Chartered Bank in the latest (and largest) use of its civil enforcement powers. The fine included a 30% reduction to take account of self-reporting and cooperation.

OFSI’s Penalty Report can be found here.

The breaches of the EU’s Russian sanctions regulation 833/2014 arose out of the provision of multiple loans to the non-EU subsidiary of a Russian bank in breach of the restrictions on certain Russian banks accessing the EU’s capital markets. In total 21 loans valued at over £97m were issued during the period after OFSI acquired its civil enforcement powers.

Initially OFSI’s fines were £31.5m, but the fines were reduced after Standard Chartered exercised its right to a ministerial review of the penalties.

February 13, 2020January 11, 2024 by Mark Handley

Germany arrests man for Russian sanctions violation

It has been reported today that customs officials in the Bavarian city of Augsburg have today arrested Alexander S. on suspicion of exporting machinery to Russia in breach of the EU’s trade sanctions.

Premises have been raided in Bavaria, Saxony and Berlin.

The exports are alleged to have valued over €8m and to have taken place between 2016 and 2018 to military end users.

The allegations include the provision of false information to try and optain export permits.

February 5, 2020January 11, 2024 by Mark Handley

Estonia and Latvia conduct joint raids into suspected sanctions breaches

The Latvian security service, the VDD, and the Estonian Internal Security Service, have conducted joint raids in the two countries as part of ongoing criminal investigations.

The raids were on the premises of companies in Riga and Tallinn owned or controlled by designated persons under the EU sanctions.

It is reported that one of the companies raided was Baltic Media Alliance.