Finland investigates €2.7 million electronics export scheme to Russia
Finnish customs authorities are investigating a company in the country’s North Karelia region suspected of illegally exporting €2.7 million worth of electronics components to Russia during 2022 and 2023, despite the firm previously focusing on ‘wooden art and tourism’ with no export history.
The exported components included semiconductors, microchips, processors and connectors, Finnish state broadcaster Yle News reported, citing customs officials.
Investigation head Sanna Kuparinen said the components ‘were directly suitable for use by the Russian defence industry and could help the Putin administration’s war efforts in Ukraine,’ according to Yle. Kuparinen said the company had no foreign trade before the start of Russia’s war in Ukraine. Its previous business was completely unrelated to electronics, focusing instead on art and tourism.
The case reflects broader patterns of Russian sanctions evasion, observed Aleksi Pursiainen, founder and CEO of Solid Plan Consulting, Finland’s leading export control and sanctions consultancy.
‘With its long border with Russia, Finland has been a location of interest to illicit actors linked to the Russian Government – both before and after Russia’s full-scale invasion of Ukraine in 2022,’ he told WorldECR. ‘Russian security and intelligence services have maintained a presence in Finland and, increasingly since 2022, sought to establish complex procurement networks with front companies in Finland and across the EU.’
Authorities allege the company bought components from the United States, the EU, China and elsewhere, and resold to several companies with addresses in EU countries and Hong Kong, though some of these consignments ended up in other countries. Items were ‘illegally exported to Russia, mainly via the Vaalimaa border crossing point in Virolahti, southeast Finland,’ YLE reported.
Since late 2023, Finland has closed all land border crossings to Russia, including at Vaalimaa, significantly reducing opportunities for direct unlawful exports from Finland to Russia, Pursiainen noted.
The investigation involves two main suspects, with one believed to be living in Russia and unreachable for questioning. The other, described as a dual citizen of Finland and Russia, has been interviewed multiple times.
‘The individual living in Russia is suspected of making the practical arrangements and in effect managing the operations of a firm based in Finland,’ Yle reported, adding that the son of the suspect who is a dual citizen is believed to be an officer in the Russian military.
‘The son gave the address of a Russian military academy as his address when opening a bank account in Finland,’ the broadcaster reported authorities as saying.
Finland has been particularly active in sanctions enforcement, Pursiainen said.
‘Finnish authorities have been among the most active and effective in detecting and prosecuting sanctions violations. Finnish Customs has initiated nearly a thousand criminal investigations into sanctions violations since the war began, and Finnish Courts have handed down close to a hundred convictions for export-related sanctions violations – among the highest numbers in Europe,’ he said.
Pursiainen noted that the Finnish Ministry for Foreign Affairs and other agencies recently issued a letter to local business leaders warning them of diversion risks, particularly via third countries.
‘A recent report by the Finnish Security and Intelligence Service noted that in response to EU efforts to block circumvention routes, Russia has increasingly expanded its illicit procurement networks within European countries,’ according to Pursiainen. ‘This highlights the need for sustained vigilance not only in cross-border trade but also within the EU internal market.’
Customs authorities are investigating the case as an ‘aggravated regulatory offence and aggravated tax fraud’, with the preliminary investigation to be handed over to the Prosecutor’s Office for consideration of charges once completed.
The company remains in business, though authorities have not revealed its exact location or name, according to the chief investigator.
The Ministry of Foreign Affairs in Moscow did not respond to an email for comment.
