Breaking News: German Man Faces Charges for Selling Equipment to Russian Arms Manufacturer
A German businessman is under investigation following allegations that he sold machine tools to a Russian weapons manufacturer, despite EU trade restrictions imposed after the annexation of Crimea. The Federal Public Prosecutor's Office has charged the managing director, based in Baden-Württemberg, with several breaches of the Foreign Trade and Payments Act before the State Security Senate of the Stuttgart Higher Regional Court.
The man's company specializes in the production and trade of modern machine tools, and it maintained a long-standing business relationship with Russian arms manufacturers. Despite EU-imposed trade restrictions in 2014, the man reportedly signed three contracts with the Russian weapons manufacturer in spring 2015, totaling approximately €2 million in machine tools and accessories.
To evade detection, the man concealed these transactions through other companies he founded and employed the services of third-party firms in Switzerland and Lithuania for deliveries. To further dodge the embargo, he falsified the purchase contract, making it appear as if the agreement had been made before the embargo.
Additionally, the man illegally imported four sniper rifles from his Russian business partner through his company at €22,000 each, for test purposes. The real purchase date was postdated to circumvent the embargo.
In August 2023, the German managing director was arrested in France based on an European arrest warrant and is now in custody in Germany.
While these specific details aren't extensively covered in the original source, it's important to note that Germany has strict regulations regarding foreign direct investments (FDI) and has been enforcing sanctions measures more aggressively in recent years.
Germany's Ministry for Economic Affairs and Energy (MoE) has screening processes that can block potentially problematic transactions based on competition issues or security concerns. Furthermore, Germany implemented stricter sanctions enforcement measures, such as the First Sanctions Enforcement Bill, aimed at enhancing asset identification and seizure capabilities. Infractions can result in significant fines, as demonstrated by companies like Microsoft who were penalized for breaching U.S. sanctions on Crimea.
