German company used Slovenia to evade sanctions and deliver tech to Russia – Politico

According to the outlet, Kontron, which has offices in the EU, the UK, and the US, used its Slovenian subsidiary to export sensitive telecommunications technology worth over €3.5 million to its Russian division at the end of 2023. The exports circumvented several waves of EU sanctions that took effect that year.

Export records reviewed by Politico show that between July and November 2023, Kontron’s Slovenian subsidiary, Kontron doo, sent 11 shipments to its Russian affiliate, Iskra Technologies.

The products included dual-use goods – the SI3000 telecommunications platform, which can monitor and intercept communication traffic.

The company explained that the deliveries of goods banned by sanctions, including dual-use technologies and equipment, were related to old orders and were authorized by Slovenian authorities through previously issued licenses.

"After the implementation of the 11th package of sanctions, we stopped exporting any new goods and only delivered already approved exports in compliance with issued export licences, in accordance with the EU sanctions in force," the company said.

However, EU regulations prohibit the export of such goods even under existing contracts, although exceptions are possible, for example, for cybersecurity, medicine, or emergencies, if the government of the country where the company is based grants an order execution permit.

Politico notes that neither the European Commission nor Germany's Central Customs Authority has reported that an investigation into Kontron is underway or planned.

Earlier, Kontron had pledged to exit the Russian market, condemned the Russian invasion, stated it would not invest in the country, and promised to reduce its Russian staff from nearly 600 to 240.

However, Kontron remains present on the Russian market through its subsidiary Iskra Technologies. The EU imposed sanctions against Iskra Technologies in December 2024. Kontron owns nearly half of the shares in Russia's Iskra Technologies and effectively controls it, as it has the right to buy the remaining shares. It is unknown who owns the other half of Iskra Technologies' shares.

Although Kontron has declared its exit from Russia, its subsidiary Iskra Technologies still operates in the Russian market, receives awards for import substitution, manufactures 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 claims that these ties are in the past.

In addition, Kontron, specifically its Slovenian branch, sent nearly 50 shipments of SI3000 telecommunications equipment to Kazakhstan after the EU sanctions in 2023. The company claims all the equipment is for local use, but Kazakhstan is an ally of Russia and has openly stated it does not intend to comply with the sanctions.

It is noted that this may violate EU sanctions. Some European lawmakers are calling for an immediate investigation, emphasizing that Germany is weak in reviewing and implementing sanctions.

We previously reported that South Korean company DN Solutions' machines were found at Russian plants producing Lancet combat drones and Iskander missile launchers.