German technology company Kontron found a legal loophole that allowed it to continue exporting products to Russia even after the latest round of European Union sanctions over the invasion of Ukraine, Politico reports.
According to an investigation, between July and November 2023, Kontron’s Slovenian subsidiary shipped 49 deliveries worth over €3.5 million to a Russian company. Although EU sanctions were already in effect at the time, the equipment was initially sent to Kazakhstan—a close Russian ally—before being redirected to Moscow.
In an official statement, Kontron claimed it had ceased exporting new products following the EU’s 11th sanctions package in June 2023, and insisted that all shipments were made under existing licenses and in compliance with EU regulations.
Politico reports that the exported goods included dual-use technology, specifically the SI3000 system, which enables surveillance and interception of communications.
While neither the European Commission nor Germany’s customs authority has launched a formal investigation, the case highlights how the Kremlin continues to bypass international restrictions by using intermediary countries and allies to access critical technology—fueling a war that has now entered its third year.
Although Kontron had previously announced its withdrawal from the Russian market and condemned the invasion, its business ties to Russia were never fully severed. The company still operates through its subsidiary Iskra Technologies, which was placed under EU sanctions in December 2024. As a result, the firm’s workforce was reduced from 600 to 240 employees.
According to Politico, Kontron retains a 48.4% stake in Iskra Technologies through its Slovenian branch, Kontron d.o.o. Iskra has played a key role in President Vladimir Putin’s plan to reduce dependence on Western suppliers, serving as a conduit for importing sensitive technology into Russia.
Notably, the company received a Russian state award for advancing technological self-sufficiency in telecommunications in June and invested $500,000 the following month to expand router production for Rostelecom, Russia’s state-owned telecom giant.
German politicians responded with outrage. Green Party member Konstantin von Notz called for a thorough investigation and sanctions against all European firms engaging in backdoor dealings with Russia. CDU lawmaker Roderich Kiesewetter emphasized that denying Russia access to Western technology remains one of the most effective blows to its war machinery.
