Photo: Depositphotos
German technology company Kontron, which has operations in the EU, the UK, and the US, exported sensitive telecommunications technology worth more than €3.5 million to Russia at the end of 2023, despite European Union sanctions imposed over Russia’s invasion of Ukraine. This is according to a POLITICO investigation.
According to export records, 11 shipments were sent by Slovenian subsidiary Kontron d.o.o. to its Russian subsidiary Iskra Technologies between July and November 2023, following the introduction of the 11th EU sanctions package in June 2023, which aimed to restrict the export of advanced and dual-use technologies to Russia. The exported goods included the SI3000 dual-use product, which can be used to monitor and intercept communications.
Kontron claims that these shipments were part of previously approved orders authorised by export licences issued by the Slovenian government. The company said it stopped all new shipments after the sanctions were imposed in June 2023, delivering only goods under already approved licences, in line with the current EU sanctions.
Despite Kontron’s announcement that it would reduce its operations in Russia following the invasion of Ukraine, the company has retained full control of Iskra Technologies, which itself was added to the EU sanctions list in December 2024. According to the latest financial statements, Kontron, through its Slovenian subsidiary, owns 48.4% of Iskra Technologies and has de facto control through a call option on the remaining shares.
The case has raised new questions about Russia’s ability to access critical technologies despite restrictions and has raised calls for a stronger global sanctions regime. Roderich Kiesewetter, a CDU member of the Bundestag and former NATO officer, told POLITICO that Russia’s continued access to surveillance and telecommunications technology “supports Putin’s war machine and weakens European security”. He stressed that the lack of Western technology is a serious blow to Russia’s military economy, and Russia has repeatedly tried to circumvent sanctions through sophisticated schemes.
The European Commission and the German Central Customs Office have not announced the launch of an investigation into Kontron. However, the case highlights the need for closer supervision of the implementation of sanctions, especially in relation to dual-use goods that could be used for military purposes.
Source: POLITICO
