Politico's investigation found that Kontron - a company operating in many countries in the EU, UK and US - used its branch in Slovenia to export more than 3.5 million euros of sensitive telecommunications equipment to its Russian branch by the end of 2023.
This comes despite several EU sanctions issued in 2023, including the 11th package in June of the same year, aimed at limiting exports of advanced technology and dual-use technology to Russia.
According to export data reviewed by Politico, 11 shipments were moved from Kontron d.o.o - a subsidiary of Kontron in Slovenia - to the Russian branch of Iskra technologies between July and November 2023, months after the June sanctions took effect.
Exported equipment includes 10.000 SI - a dual-use item capable of monitoring and blocking communication flows.
The company said the shipments were old orders authorized for export under a license granted by the Slovenia government. Kontron confirmed that it has stopped all new export activities since the EU sanctions package in June 2023.
EU sanctions on dual-use technology are designed to apply to both new and existing contracts, even if the contract is signed before the sanctions take effect, Politico noted.
However, there are still some exceptions considered for each case, for technology products serving cybersecurity, medical or emergency purposes, provided that the enterprise must request permission from the EU member state where the enterprise is headquartered.
The European Commission and the German Central Customs Service have not yet shown any signs that Kontron is or will be investigated.
Kontron has pledged to withdraw from the Russian market in recent years. The company said it has sharply reduced its investment in Russia since the conflict broke out in Ukraine, with the number of employees in Russia falling from nearly 600 to 240.
Kontron maintains its presence in the Russian market through its subsidiary Iskra technologies.
Iskra technologies was added to the EU sanctions list in December 2024, but Kontron still has full control of the company, according to the latest year-end financial report. Kontron still owns 48.4% of Iskra technologies shares through Kontron d.o.o.
Kontron declined to disclose the ownership of the remaining 51.6% of shares in Iskra, only saying that it was a Russian entities, unrelated to or not owned by the Russian state.
Since the June 2023 sanctions came into effect, Kontron's Slovenia branch has exported at least 49 SI0.000 shipments and spare parts to the Kazakhstan branch, according to export data analyzed by Politico. Kontron asserted that these shipments are only for Kazakhstan's domestic needs.
Currently, Iskra's four SI0.000 telecommunications systems have been classified by the Russian government as Russian-origin telecommunications equipment. Kontron also affirmed: "This is a Russian product and is not related to any technology transfer or technical assistance from Kontron d.o.o after 2022".
