German firm skirts sanctions, ships tech to Russia through Slovenia

Politico reported the information.

An investigation found that Kontron, a company with offices across the EU, the UK, and the U.S., used its Slovenian branch to export over €3.5 million worth of telecommunications technology to its Russian subsidiary at the end of 2023.

This occurred despite several waves of EU sanctions, including the 11th package adopted in June 2023, aimed at restricting the export of advanced technologies and dual-use goods to Russia.

Export documents reviewed by the outlet show that 11 shipments were made from Kontron’s Slovenian branch to its Russian subsidiary, Iskra Technologies, between July and November 2023, after the June sanctions had taken effect.

Among the exported products were dual-use goods, including the SI3000 system, which can track and intercept telecommunications traffic.

The company stated that these shipments were carried out under valid licenses issued by the Slovenian government and were related to previously signed contracts. It also reported that all new shipments were halted after June 2023.

“After the implementation of the 11th package of sanctions, we stopped exporting any new goods and only delivered already approved exports in compliance with issued export licences, in accordance with the EU sanctions in force,” the company said.

According to the report, Kontron had previously announced its withdrawal from operations in Russia. The company condemned the “tremendous human suffering” caused by Russia’s full-scale invasion of Ukraine and declared it would no longer invest in Russia.

However, Kontron still maintains a presence in the Russian market through its subsidiary Iskra Technologies, which was added to the EU sanctions list in December 2024. The year-end report states that Kontron “continues to control Iskra Technologies,” owning 48.4% of its shares through its Slovenian branch.

In response to journalists' inquiries, Kontron did not specify who owns the remaining 51.6% of Iskra’s shares, only stating that it is a "Russian entity not affiliated with state-owned companies."

The investigation also revealed that since June 2023, Kontron’s Slovenian branch has made at least 49 deliveries of SI3000 technology and spare parts to Kazakhstan.

Additionally, it is noted that in August 2023, Iskra Technologies merged with the Russian company RTSoft, which Kontron referred to as its "sister company." Since 2016, RTSoft held a license from the FSB to work with classified Russian information, although Kontron claims this license was revoked in April 2022.

Slovenian documents show that by the end of 2023, Kontron d.o.o. had a loan of €3.546 million to Iskra Technologies, repayable in 2026–2027. In 2022, it also wrote off €6.393 million of the Russian company’s debts.

EU sanctions prohibit providing financial aid or making funds available to sanctioned entities. Kontron stated these loans remain active but have been checked for compliance with sanctions.