German technology company Kontron exported limited technology to Russia even as the European Union imposed a new round of sanctions against the Russian Federation.
This is stated in the Politico investigation.
Kontron used a Slovenian subsidiary to export more than €3.5 million worth of confidential telecommunications technology to its Russian unit in late 2023. This happened while circumventing several waves of EU sanctions that came into effect in 2023.
Slovenian subsidiary Kontron doo shipped 11 batches of products to Russian subsidiary Iskra Technologies between July and November 2023.
The products included a dual-purpose product — the SI3000 telecommunications platform, which can monitor and intercept communication traffic.
The company explained that the supplies of goods prohibited by sanctions, including dual-use technologies and equipment, related to old orders and were permitted by the Slovenian authorities through previously issued licenses. After the 11th package of sanctions in June 2023, the company, as they claim, stopped all new supplies.
However, the EU has rules that prohibit the export of such goods even under contracts already concluded, but exceptions are possible, for example, for cybersecurity, medicine, or emergencies, if there is permission from the government of the country where the company is located.
Even earlier, Kontron promised to abandon work in Russia, condemned the Russian invasion, stated that it would not invest in this country and would reduce the number of employees in Russia from almost 600 to 240.
However, Kontron is still present on the Russian market through its subsidiary Iskra Technologies. The EU imposed sanctions on the latter in December 2024. Kontron owns almost half of the shares of the Russian Iskra Technologies and effectively controls it, as it has the right to buy out the remaining shares. It is not known who exactly owns the other half of the shares of Iskra Technologies.
Although Kontron announced its withdrawal from Russia, its “daughter” Iskra Technologies still operates in the Russian market, receives awards for “import substitution”, produces equipment for Rostelecom, and its systems are already called “Russian”. In 2023, Iskra merged with RTSoft, a company with an FSB license and experience working with the Russian Ministry of Defense. Kontron assures that these ties are in the past.
In addition, Kontron, namely its Slovenian division, sent almost 50 batches of SI3000 telecom equipment to Kazakhstan after EU sanctions in 2023. The company says that everything is for local use, but Kazakhstan is an ally of Russia, and they directly stated that they were not going to comply with the sanctions.
This could violate EU sanctions. Some MEPs are calling for an immediate investigation into the matter, stressing that Germany is weak in reviewing and implementing sanctions.
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