German Tech Firm Accused of Bypassing EU Sanctions to Supply Russia via Slovenia
The German technology firm Kontron may have circumvented EU sanctions to supply advanced telecommunications equipment to Russia through its Slovenian subsidiary.
The Gaze reports on this with reference to Politico’s investigation.
Despite the European Union’s 11th sanctions package, adopted in June 2023 to block the export of sensitive technologies and dual-use goods to Russia, documents reviewed by Politico show that Kontron’s Slovenian branch shipped over €3.5 million worth of telecommunications equipment to its Russian subsidiary, Iskra Technologies, between July and November 2023.
Kontron insists the deliveries were made under valid Slovenian government export licenses and were part of pre-existing contracts signed before the sanctions took effect. The company claims that all new shipments ceased following the June 2023 sanctions package.
Notably, Kontron had publicly distanced itself from the Russian market in the wake of the full-scale invasion of Ukraine, stating it would cease investments in Russia and decrying the “tremendous human suffering” caused by the war. However, the company maintained its Russian presence via Iskra Technologies, which was only added to the EU sanctions list in December 2024. According to Kontron’s 2023 annual report, the German firm still controls 48.4% of Iskra’s shares through its Slovenian entity.
The ownership of the remaining 51.6% remains unclear, with Kontron only describing it as held by a “non-state Russian entity.”
Further scrutiny reveals that Kontron’s Slovenian division also sent at least 49 shipments of SI3000 components and systems to Kazakhstan after the June 2023 sanctions came into force – a pattern that raises questions about potential rerouting of sensitive goods to Russia via third countries.
This developing story adds pressure on Brussels to scrutinize the enforcement mechanisms of its sanctions regime and assess the effectiveness of export controls in curbing Russian access to sensitive technologies.
As The Gaze reported earlier, on May 20, the European Union approved a new package of sanctions against Russia, the 17th in a row since the start of the full-scale invasion of Ukraine.