Czech Republic Intensifies Efforts Against Companies Violating EU Sanctions on Russia

The Czech government is stepping up its efforts to combat companies that violate EU sanctions against Russia by exporting and importing goods through third countries. As reported by Radio Prague International, the Czech customs administration has identified approximately 40 cases of sanctions violations, often through Turkey or post-Soviet republics.

One of the cases currently under investigation involves the illegal export of automobiles to Russia. The police are also investigating the Czech company Labara, which sent machine tools through Turkey to its subsidiary in Russia that could potentially be used for weapon production.

The fight against Russian evasion of sanctions through Czech companies has been ongoing for some time. In the summer, a Czech company with Russian capital, Kovosvit MAS, came under investigation for suspected EU sanctions violations by exporting heavy machinery to Russia, which could also be used for weapon production. In this case, the export of dual-use goods was also carried out through Turkey. According to the Czech counterintelligence service BIS, the large lathe machines actually passed through a Turkish front company and ended up in Russia.

Recall that in September, the Czech Security Information Service (BIS) identified one of the Russian agents who had lived in the Czech Republic for years and organized campaigns to spread Russian propaganda about the war in Ukraine. According to law enforcement officials, the Russian agent coordinated his actions with Russian intelligence services and "paid thousands of euros" to individual journalists who, in turn, promoted Russian narratives. The agent also funded foreign trips for journalists creating propaganda stories.

At the end of the summer, the National Anti-Terrorism Center of the Czech Republic initiated an investigation into the activities of the Austrian Raiffeisen Bank International in connection with the activities of its subsidiary in Russia. The Association for the Protection of Citizens' and Entrepreneurs' Rights filed a complaint against Raiffeisen Bank with law enforcement agencies. The organization claims that the Austrian company, by continuing its business in Russia, effectively finances the invasion of Ukraine.