Some Lithuanian companies are aware that they are helping Russian entities to circumvent sanctions but continue to cooperate with them, Lithuanian intelligence agencies have reported.
Russian entities often involve Russian and Belarusian companies with a long-time presence in Lithuania in schemes to circumvent international sanctions, the State Security Department and the Second Investigation Department under the Defence Ministry said in their annual national security threat assessment report published on Thursday.
They note that many of these companies provide warehousing, transport, and customs clearance services.
Goods exported to Russia include components for the transport sector, metalworking and laboratory equipment, electronics, microelectronics and components, and products for military use, according to the report.
“Russia is making great efforts to circumvent international sanctions by developing new schemes involving Russian intelligence services, using contacts with companies operating in European Union countries, and using Russian and Belarusian nationals,” the agencies said.
Most of the Russian and Belarusian nationals who own companies in Lithuania linked to sanctions-circumvention schemes have direct business contacts in Russia and Belarus. Their firms purchase equipment manufactured in the West and supply it to Russian or Belarusian companies, institutions, and research organisations operating in strategic sectors, according to the report.
Some companies owned by Belarusian citizens in Lithuania also acted for the benefit of entities in Russia, seeking to provide them with equipment to modernise their military forces, and received funding from companies linked to the Russian military industry.
The report says that Russian intelligence services – the Foreign Intelligence Service (SVR), the Main Directorate of the General Staff of the Russian Armed Forces (GRU), and the Federal Security Service (FSB) – are involved in organizing the import of sanctioned goods and equipment into Russia.
“Companies operating in Russia’s strategic industries cooperate with intelligence services and provide them with ‘shopping lists’ containing Western high-tech equipment or components that Russian intelligence services are supposed to acquire,” it reads.
With Russian strategic industries facing difficulties due to sanctions, it is “highly likely that Russian intelligence services will increase their efforts to procure and supply the necessary equipment, production or technological innovation to Russia”, the Lithuanian intelligence believes.
“It is also highly likely that to achieve this goal they will use supply chains, logistics infrastructure or individuals seeking to profit from the sanctions evasion.”
Cases have also been identified where sanctions circumvention schemes have been organised by Russian citizens who have not set up or run businesses in Lithuania but have obtained residence permits. They usually act as intermediaries, trying to establish contacts with Lithuania-based companies that sell or manufacture equipment required by Russia, according to the report.
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