Company owned by Lithuanian official supplied Western luxury brands to Russia

A company owned by an adviser at Lithuania’s Ministry of Social Security and Labour allegedly exported millions of euros worth of luxury Western-brand clothing to Russia, circumventing sanctions through third countries, according to an investigation published by the investigative journalism centre Siena.

The company, Mėlynšilis, based in the Šalčininkai district, supplied more than $4.5 million (approximately €3.8 million) worth of branded apparel – including items from Nike, Tommy Hilfiger, Puma, Calvin Klein and Adidas – to Russia between early 2023 and spring 2024, Siena reported.

These exports reportedly passed through Turkey and Serbia before reaching Russia, ultimately delivered to Umnyj Import, a company owned by the Russian state-controlled and sanctioned Sberbank.

Under EU sanctions, many Western companies are prohibited from selling goods in Russia, especially luxury brands that have withdrawn from the market following Moscow’s full-scale invasion of Ukraine in 2022.

Mėlynšilis is solely owned by Antonina Miliauskienė, an adviser at the Department of Social Services Supervision, which operates under the Ministry of Social Security and Labour (SADM).

Sberbank | AP

When contacted by Siena, Miliauskienė claimed she was unaware of the company’s export activities and directed inquiries to her son, Mindaugas Miliauskas. He declined to comment on the company’s transactions with Umnyj Import.

According to the report, Mėlynšilis pivoted to freight and shipping services in July 2022 – months after Russia launched its invasion of Ukraine and as international companies began pulling out of the Russian market. Prior to this, the company was engaged in the forestry sector.

The investigation also links Mėlynšilis to the so-called “parallel import” system, a Russian state-authorised scheme that allows unauthorised imports of Western goods into the country without the consent of brand manufacturers, bypassing traditional supply chains and restrictions.

Financial records submitted to Lithuania’s Centre of Registers show that Mėlynšilis saw significant growth in 2023. Its revenues increased nearly eightfold to €468,500, up from €59,600 the previous year. The company posted a modest profit of €2,340 in 2023, after reporting a loss of €312 in 2022.

The Ministry of Social Security and Labour has not yet commented on the report.