Lithuania cracks down on sophisticated Russian sanctions evasion scheme

Lithuanian authorities have dismantled on 24 August a sophisticated scheme to bypass EU sanctions on Russia, detaining 11 individuals linked to a Kaunas-based company.

The operation, led by the Customs Criminal Service (CCS), uncovered attempts to export industrial water-treatment equipment from Lithuania to a fictitious recipient in Portugal, with shipments routed through Bulgaria and Turkey to ultimately reach Russia.

The CCS, in collaboration with Portuguese and Bulgarian law enforcement, Eurojust and Europol, conducted raids targeting the Kaunas company. The firm allegedly posed as a legitimate supplier to a Portuguese entity while orchestrating deliveries to Russia. Investigations revealed the company’s deep ties to Russian enterprises, including a petrochemical conglomerate.

Searches yielded several tons of equipment valued at approximately €2 million, intended for Russian industrial projects, particularly in the oil sector. Two trucks were intercepted – one in Kaunas and another near the Lithuanian-Polish border – while a third shipment was seized at a Bulgarian freight terminal. Additional raids in Portugal targeted the premises of the fictitious recipient, and a warehouse in Bulgaria linked to the Kaunas firm was also searched.

The 11 detained individuals, including company executives and drivers from Bulgaria and Moldova, were questioned and subsequently released. Two face travel restrictions as the investigation continues. The Kaunas District Prosecutor’s Office is leading a pre-trial probe into violations of international sanctions.

EUalive asked the Bulgarian authorities to comment, but received no response by the time of publication of this article.

Broader context of sanctions enforcement

The EU has imposed stringent sanctions on Russia since its 2014 annexation of Crimea, with measures escalating significantly after the full-scale invasion of Ukraine on 24 February, 2022. These include bans on exporting goods and technologies that could bolster Russia’s military or industrial capabilities, as well as criminal penalties for sanctions evasion.

This case follows similar enforcement actions across the region. In August, Latvian prosecutors charged executives of SIA Arta-F for supplying €6 million in materials for Russian military uniforms. In May, Polish authorities detained three individuals for breaching sanctions on Russia and Belarus.

In April, Lithuania uncovered a large-scale scheme to circumvent international sanctions, facilitating the illegal supply of prohibited goods, including weapons, to Russia and Belarus. The operation centered around a Vilnius-based company that provided logistics, transportation, and forwarding services for these illicit shipments.

On 10 April, law enforcement conducted raids at the company’s offices, as well as at the residences of its key personnel. The operation involved officers from the European Anti-Fraud Office (OLAF). During the raids, authorities seized two trucks potentially carrying sanctioned goods, €100,000 in cash, along with weapons, ammunition, and explosives.

The investigation continues

The Kaunas scheme highlights the challenges of enforcing sanctions amid complex supply chains. By routing equipment through multiple countries, the company exploited gaps in oversight, underscoring the need for robust international cooperation. The involvement of Eurojust and Europol was critical to unraveling the network, which relied on intermediaries in Portugal, Bulgaria, and Turkey to obscure the final destination of the equipment.

Lithuanian authorities continue to investigate the full scope of the company’s activities, focusing on its ties to Russian oil and petrochemical industries.

Caption: A Lithuanian police car. [Lithuanian Police Force]