German authorities uncover sanctions-evasion network supplying Russia with dual-use goods via Turkey
German prosecutors have uncovered a large sanctions-evasion network that allegedly supplied Russia's military industry with European dual-use technology via Turkey and shell companies. Police arrested a 39-year-old businessman identified as Nikita S. during raids linked to a four-year investigation. Prosecutors believe the network handled around 16,000 shipments worth more than €30 million ($35 million).
German authorities have uncovered a large sanctions-evasion network that allegedly supplied Russia's military industry with European dual-use technology via Turkey and shell companies, prosecutors said.
Police arrested a 39-year-old businessman identified as Nikita S. during raids linked to a four-year investigation. Prosecutors allege the network illegally exported European dual-use goods to Russia in violation of Germany's Foreign Trade Act.
A Lübeck-based trading firm, Global Trade, allegedly functioned as a covert procurement arm for Russian industry after Moscow's full-scale invasion of Ukraine, according to investigative files reviewed by Politico and German outlet Bild. The network shipped microcontrollers, sensors, converters, ball bearings, oscilloscopes, and other electronic and mechanical components with both civilian and military applications. Some shipments were allegedly traced to Russian defense-linked entities and nuclear research institutes.
The scheme relied on Turkish intermediaries and German shell companies to disguise the final Russian recipients, investigators said. A Turkish company, MR Global, allegedly acted as a transit hub, while Russian company Kolovrat – also known as Siderius – allegedly coordinated the procurement operation from Moscow. Shipments reportedly reached Russia within 5 to 10 days of leaving the EU.
Germany's foreign intelligence service, the BND, gained access to internal documents, invoices, correspondence, and order lists connected to the operation. Prosecutors said investigators later matched European export records with Russian import data and tracked payments through intermediary firms. One internal message allegedly instructed associates: "Make it look clean. No Russian reference anywhere." Another reportedly read: "We need a different consignee – Turkey works."
Prosecutors believe the network handled around 16,000 shipments worth more than €30 million ($35 million). Several suspects remain in custody as authorities continue building criminal cases related to sanctions evasion and export control violations.