In the heart of Europe, a company is feeding Russia’s war with technology, Politico reports.
Russia is currently the most sanctioned country in the world. Moscow has lost at least $150 billion due to restrictions but still manages to maintain its military power.
Despite EU sanctions, the German-based company Kontron continued supplying Russia with dual-use equipment that can be employed for military purposes.
Kontron, while now owned by Austrian-based S&T since 2017, remains widely recognized as a German-based company due to its origins, major German operations, and regulatory oversight by German authorities.
Kontron used its Slovenian subsidiary, Kontron doo, to bypass sanctions and deliver the SI3000 telecommunications platform — a system capable of intercepting communications — to Russia’s Iskra Technologies. The total exports exceeded €3.5 million between July and November 2023.
Although Kontron claims it was fulfilling legacy contracts, EU regulations clearly prohibit the export of such sensitive technology except for exceptional purposes, such as medicine, cybersecurity, or emergency services.
Despite publicly condemning Russia’s invasion, announcing its withdrawal from the Russian market, and scaling back its presence, Kontron has effectively continued cooperating with entities linked to the FSB, the Russian Ministry of Defense, and Rostelecom. Iskra Technologies not only remains operational but has even received awards in Russia for its “import substitution” efforts.
Moreover, following the imposition of EU sanctions in 2023, Kontron exported about 50 shipments of equipment to Kazakhstan, a country that has refused to support the sanctions regime against Russia. This transit through a third country is a textbook example of secondary sanctions evasion.
Despite extensive evidence, neither the European Commission nor the German authorities has launched a formal investigation so far. However, several Members of the European Parliament are already demanding immediate intervention and tighter enforcement of sanctions.
Kontron owns nearly 50% of Russia’s Iskra Technologies and holds the right to acquire the remaining shares. The identity of the other stakeholder remains unknown.
