Politico: German company exported restricted technology to Russia despite EU sanctions

A German technology company managed to export banned technologies to Russia even after the European Union imposed a new package of sanctions against the country.

An investigation by Politico alleges that Kontron, a company operating in the EU, the UK, and the US, used its Slovenian subsidiary at the end of 2023 to export sensitive telecommunications technologies worth more than €3.5 million to its Russian branch, Caliber.Az reports.

This occurred despite several waves of EU sanctions taking effect in 2023, including the 11th package introduced in June of that year, specifically aimed at restricting the export of advanced and dual-use technologies to Russia.

Export records reviewed by Politico show that between July and November 2023—months after the June sanctions came into force—Kontron’s Slovenian subsidiary, Kontron doo, shipped 11 batches of goods to its Russian subsidiary, Iskra Technologies.

The exported technology included a dual-use product capable of monitoring and intercepting communication traffic, known as SI3000.

According to the article, Kontron has repeatedly pledged to reduce its involvement in Russia over recent years. In its 2021 annual report, the company denounced the “great human suffering” caused by Russia’s military assault on Ukraine and stated it had “decided not to invest” in the country any more. It further promised in 2022 to “continue decreasing our involvement […] on a continuous but optimised basis.” The firm claimed it has “significantly” reduced its footprint in Russia since 2022, including a reduction in its local workforce from nearly 600 to 240 employees.

Despite these declarations, the investigative article accuses Kontron of still maintaining a foothold in the Russian market through its subsidiary, Iskra Technologies. This entity was sanctioned by the European Union in December 2024, yet Kontron remains in full control of the company, according to its most recent end-of-year financial statements.

The EU foreign ministers approved a 17th round of sanctions against Russia on May 20 that has EU entrepreneurs from doing business with over 45 individuals and entities linked to Russia's military industry. The EU has also imposed further restrictions on a Russian oil company and a shipping business. Additionally, the package doubles the number of banned vessels in Russia’s so-called "shadow fleet"—an ageing group of oil and gas tankers used by Moscow to evade the West’s oil price cap.

EU sanctions targeting dual-use technologies are designed to apply retroactively, covering both new and existing contracts. Although there are limited case-by-case exceptions for cyber, emergency, and medical technology, companies are required to obtain approval from the relevant EU member state to proceed with such transactions.

So far, neither Germany’s Central Customs Authority nor the European Commission have indicated whether Kontron is under investigation. However, the article points out that the situation has sparked renewed concerns over Russia’s continued access to sensitive technology, despite international sanctions, and has led to calls for stricter enforcement.

Konstantin von Notz, a Green Party member of the Bundestag and chair of the Parliamentary Oversight Panel, emphasised the need to prevent any attempts “to undermine sanctions that have been imposed on Russia for very good reasons.” He continued: “The responsible supervisory authorities at both the European and national levels must continue to monitor this situation very closely — and now follow up on relevant leads with real determination.” Von Notz also urged that any loopholes in the EU sanctions regime be closed “without delay.”

Bill Browder, a British-American investor and political advocate known for championing sanctions against Russian human rights violators, echoed these concerns by highlighting that sanctions mean nothing without enforcement.

By Nazrin Sadigova