Netherlands arrests 3 in international smuggling ring in violation of Russia sanctions

An international investigation led by the Netherlands in connection with the shipment of technological components to Russia since the outbreak of war in Ukraine led to raids in several locations in the Netherlands, Canada, Estonia, Germany and Latvia. Two men from Diemen, aged 56 and 57, and a 54-year-old woman from The Hague were arrested in for allegedly violating sanctions against Russia, financial crimes inspectorate FIOD wrote in a statement.

"The suspicion is that, in violation of the trade restrictions as a result of the sanctions, they may have supplied technological and laboratory goods to Russia that could also be used for military purposes," FIOD said on Tuesday. "The two suspected men were both directors of the company at the time the sanctions legislation was in force," the statement continued. "The arrested woman was probably also involved in circumventing rules, and performed work for the suspect company."

The investigation was launched by FIOD following a report by Nieuwsuur that the Russian-owned Dutch company, ETW-Tekhnologiya, sent eight shipments last August including electronics components which could be used in Russian weapons systems. The company, based in Voorschoten, allegedly sent another 135 shipments worth over 1.2 million euros which may also have violated sanctions, as well as thousands of other shipments of technological goods which were not on sanctions lists.

The broadcaster said that former ETW-Tekhnologiya CEOs Freek S. and Hans D. were both arrested, as well as an employee. Dutch authorities were also looking for ETW-Tekhnologiya founder Mikhail Volovik, who has not yet been arrested. He and his wife also have connections to several organizations on European sanctions lists, including subsidiaries of State oil firms Rosneft and Gazprom, and arms company Rostec. The former executives who were charged both said previously that they never suspected the company was doing anything illegal.

ETW-Tekhnologiya's bank account was seized, NOS reported. The raids and arrests all took place on January 9, and authorities seized company administration documents, data storage devices, and various goods. FIOD conducted the investigation with authorities in the four other countries where raids took place, as well as Eurojust and Europol. Up until Tuesday, a gag order was in place on the case, and the suspects were kept in restricted custody and only allowed contact with attorneys.

According to Nieuwsuur, the questionable goods included carbon dioxide sensors, hydrometers, electrical resistors, and glass casings. Allegedly, those goods were sent to Volovik's warehouse in Latvia where they were smuggled into Russia. ETW-Tekhnologiya also allegedly sent products via Russia to destinations in Hong Kong and Dubai, but the material never actually left Russia.

Someone with Volovik's name was also found in the Panama Papers investigation into offshore company holdings. That person has an address in Moscow, and was the shareholder of a logistics company and finance firm registered in the British Virgin Islands.