Germany uncovers large scale scheme to supply dual use technology to Russia

At the center of the smuggling scheme was the German trading company Global Trade, based in Lübeck. After Russia launched its full-scale invasion of Ukraine, the company was headed by a 39-year-old businessman named “Nikita S.,” according to Politico.

In reality, the company was run by the Russian firm “Kolovrat,” which is subject to sanctions and serves the Russian defense-industrial complex. Russian supervisors had direct access to the German firm’s email. They ordered goods across Europe under fictitious names, mimicking the activities of a legitimate German business.

Since direct exports to Russia had become difficult due to Western sanctions, the criminal network began routing shipments through other countries, most often through Turkey. According to the investigation, the time between export from the EU and import into Russia was often just five to ten days.

According to customs records and intelligence reports contained in the case file, the Russians were buying up microcontrollers, electronic components, sensors, transducers, ball bearings, mechanical parts, oscilloscopes, and other measuring equipment on a massive scale. These dual-use goods were sent directly to Russian military enterprises. In particular, the equipment was received by the All-Russian Scientific Research Institute of Automation, which is linked to the nuclear weapons program.

In total, approximately 16,000 shipments worth over 30 million euros passed through this network. The German Federal Intelligence Service (BND) was able to expose the smugglers. German intelligence agents managed to infiltrate the internal network of the Russian company “Kolovrat” and track the transactions from within.

“Nikita S.” and several of his accomplices were arrested after a lengthy surveillance operation. They are accused of systematically violating export controls and large-scale evasion of sanctions. Under German law, those involved in the case face up to 10 years in prison.

Documents indicate that this was not an isolated scheme, but part of a broader system designed to ensure a continuous flow of critical technologies to Russia, despite Western sanctions. In one of its assessments, the BND notes that another Russian company—Rokem Services—attempted to obtain sanctioned equipment from a German firm through intermediaries, including Global Trade, a Turkish state-owned entity, and Kolovrat.

“It is assumed that this equipment consists of components for seawater desalination plants, which can also be used for military purposes, particularly on nuclear submarines,” noted a BND investigator.

Photo: atr.ua.