As Western sanctions complicate payments to Russian companies and workers, a Lithuania-registered platform founded by two Russian citizens has quietly enabled tens of millions of euros to flow into Russia, helping businesses sidestep restrictions.
The company, EasyStaff, set up in Vilnius in late 2020 by Russian nationals Vitaly Mikhailov and Evgeny Fedorov, acts as an intermediary that allows firms – many based in the EU or US – to hire and pay Russian freelancers. Official statistics show that over €50 million was routed to Russia via EasyStaff in 2023 alone, making up the bulk of a sudden spike in Lithuania’s import of IT services from Russia.
While European Union and US sanctions have largely cut Russian banks off from the global SWIFT payment system, EasyStaff enables clients to bypass these barriers by offering alternative methods, including card payments, PayPal, Skrill, and cryptocurrency.
Authorities caught off guard
According to data from Lithuania’s State Data Agency, the import of computer services from Russia surged from €2.64 million in 2023 to more than €56 million in 2024 – nearly double pre-pandemic levels.
Yet no state institution could initially explain the increase when approached by the LRT Investigations Team. The Bank of Lithuania referred inquiries to the national statistics office, which said it could not disclose which companies were involved. Meanwhile, the Ministry of the Economy and Innovation praised the overall decline in trade with Russia, without commenting on the specifics.
Technology experts were equally perplexed. Some suspected the data was flawed; others were baffled as to why Lithuanian firms would turn to Russian IT services while cutting off all business ties because of the war in Ukraine.
Eventually, the LRT Investigations Team found that one company – EasyStaff – accounted for the vast majority of the €56 million total.
Helping Russian businesses stay global
EasyStaff describes itself as a global platform that helps companies hire and pay freelancers across borders. In practice, it serves as a bridge for businesses in the EU and US that wish to employ Russian workers without dealing directly with sanctioned banks.
While Mikhailov insists the company primarily targets global markets and denies that its core clientele is Russian, EasyStaff’s own promotional material tells a different story. Many of its “success story” clients are run by Russian nationals, and company employees listed on LinkedIn are mostly Russian speakers.
In a 2024 interview published on the company’s website, Mikhailov described how “Russian-speaking businesses still prefer to hire Russian-speaking staff” and how EasyStaff helps make that possible: “The modern world makes this quite easy. I’m convinced that not just EasyStaff but any growing American and European company operates under the same logic.”
Asked by LRT whether their platform helps Russian businesses navigate sanctions, Mikhailov replied in writing that the company does not violate any sanctions, works only with banks that are not subject to sanctions. In addition, EasyStaff is advised by two law firms to ensure full compliance.
He also said clients choose EasyStaff not for evasion but for efficiency: “Clients don’t know which banks are sanctioned. They don’t want to control that, but they want to be compliant. Moreover, it is complicated now, most banks refuse transfers to Russia altogether, regardless of actual sanctions.”
A legal grey zone?
Because EasyStaff is not licensed as a payment institution in Lithuania, it is not regulated by the Bank of Lithuania. A spokesperson for the central bank said EasyStaff likely operates as a marketplace that facilitates service agreements rather than executing payments itself.
However, the Financial Crime Investigation Service (FNTT) confirmed that it had knowledge of the company, which is registered as a credit and financial intermediary due to cross-border transactions exceeding €100,000 annually. FNTT said it did not identify any threats in EasyStaff’s operations.
Critics say that’s exactly the problem.
“This is a possible loophole to get around sanctions,” said Mindaugas Ubartas, former head of Lithuania’s InfoBalt tech association. “Who can stop me from claiming I’m hiring an IT expert, while I’m really paying for microchips someone smuggled tucked into their wallet, underwear or a bra?”
He also noted the financial impact: “We cheer on social media when a drone destroys a tank worth €3 million. But €50 million in transfers? That’s 15 tanks.”
Lack of oversight
Despite thousands of invoices filed with Lithuania’s tax authority and matching transfers to Russian bank accounts, no red flags were raised by regulatory bodies until LRT began asking questions.
The Ministry of Foreign Affairs, which coordinates Lithuania’s sanctions policy, declined to comment specifically but emphasised that facilitating access to resources for sanctioned entities – directly or indirectly – is considered a violation.
The Ministry of the Economy reiterated its position that businesses should not maintain any ties with Russia and cited several ongoing criminal investigations into sanctions evasion as proof the system is working.
Still, Ubartas remains sceptical.
“This hands-off attitude – ‘It’s not in our business, we didn’t see anything’ – is a systemic flaw,” he said. “Institutions only follow the rules, and if something is not spelled out, they say it’s not their responsibility, they cannot do anything.”
Newsletter
Every Friday morning.
