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.
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.
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.
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.
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.
Estonia – company owned by designated person required to close
The Estonian branch of Sputnik, controlled by Rossiya Segodnya which has a CEO under EU sanctions, has closed under threat of criminal prosecutions from the Estonian authorities. Staff members were told that continuing employment would amount to providing “economic resources” to a designated person in breach of EU sanctions.
German prosecution for sale of dual-use goods to Russia
On Friday the trial in Germany starts of Vladimir D. who is accused of eight counts of exporting dual use goods (both chemicals and equipment) to Russia and allegedly for a military end user in breach of the EU’s sanctions.
The exports are alleged to have taken place between 2014 and 2018.
The man was arrested in late 2018 and raids conducted in Baden-Württemberg. The value of the exports is reported to be €1.83 million.
Germany – seven year sentence for Russian exports
The Higher Regional Court of Hamburg has today sentenced a man to seven years in jail for exports to Russian in breach of EU sanctions.
Our earlier post had outlined that the man was charged with exports of chemicals and machinery to Russia which could be used in the manufacture of military rockets. False documentation had been created in an attempt to mask the exports.
Latvia – bank fined €1.1m for Russian sanctions compliance failings
The Latvian financial services regulator (the FKTK) has fined SEB Bank €1.8 million, of which €1,121,140 related to shortcomings in the banks sanctions compliance.
The inspections leading to the fine had taken place in 2017 and 2018.
The failings are said to have been specific to the EU’s Russian sanctions in regulation 269/2014 (as amended).
The fine was stated to be for not screening for companies and other assets owned by designated persons.
Latvia – TV channels owned by designated person blocked from broadcasting
It has been reported today that the Latvian authorities have placed a block on the broadcasts of nine Russian television stations owned by a designated person under the EU’s sanctions.
The stations are owned by Yury Kovalchuk.