Swedish parts in Russian drones. The report reveals how companies circumvent sanctions

Companies from Sweden can export goods to Russia through intermediaries in other countries, including: using cryptocurrencies or acting on the inspiration of Russian intelligence – according to a report by the Swedish police and customs services published on Thursday.

The analysis drew attention to the phenomenon of companies that withdrew from the Russian market after February 2022 opening new branches, companies or factories in countries not covered by sanctions and cooperating with Russia.

The list of high-risk countries includes: Belarus, Kazakhstan, Armenia and Kyrgyzstan. However, Serbia and Turkey were considered higher-risk destinations. The others are the United Arab Emirates, India, Iran and China, including Hong Kong and Macau.

Another questionable method is the creation of complex structures of international corporations to hide the target recipients of the goods. Companies can then excuse themselves as being unaware that the expert is going to Russia.

Attention was drawn to the possibility of the Russian arms industry using components from civilian devices, e.g. for the production of drones.

Swedish services suspect the use of cryptocurrencies in transactions to avoid banking systems. The report also mentioned the possibility of Russian intelligence initiating and facilitating key procurement orders for Russia. It was recalled that the authorities in Russia have funds to pay conscious or unconscious intermediaries.

At the same time, the report emphasizes that although exports from Sweden to Russia will begin to decline after 2022, their value to countries neighboring or cooperating with Russia has increased.. Against this background, trade with Turkey increased significantly.

The police emphasized that despite allegations of law breaking, the number of reports of sanctions violations remains very low. – This raises serious concerns – admitted Johan Grenfors from the police National Operations Department (NOA).

The study, co-authored by experts in tax administration, financial supervision and foreign trade, does not provide the names of companies suspected of circumventing sanctions. At the end of September, the Aftonbladet newspaper revealed that ball bearings produced by the Swedish company SKF are used in Russian drones attacking Ukraine. These elements were found in the downed drones by the Ukrainian military.

From Stockholm Daniel Zyśk (PAP)

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