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ECONOMIC AND ENERGY SECURITY

Although the scale of international sanctions circumvention remains high, the operating models have not changed

Although the scale of international sanctions circumvention remains high, the operating models have not changed

Russia and its intermediaries use well-established operating models to evade international sanctions. Russian federal authorities are allocating both institutional and financial resources to facilitate this, particularly to ensure the supply of equipment and technologies necessary for the military industry.

Russian entities are increasingly exploiting companies controlled by Belarusian citizens or Russian citizens who are based in the West and who have the possibility to establish contacts with business entities, high-tech equipment manufacturers, and transport sector representatives operating in Western countries. In certain cases, Russian citizens seeking to evade sanctions are attempting to revive businesses that have been inactive for some time.

One example of sanctions evasion is the activity of a company called BK Software, overseen by Kirill Lupandin, a Russian citizen. Intelligence suggests that BK Software established business ties with Asia Pacific Links Limited, a Hong Kong-registered company belonging to Anton Tromifov, a Russian citizen. Asia Pacific Links Limited is subject to EU and US sanctions and is one of the largest suppliers of microelectronic components used in the production of ‘Orlan’ UAVs to Russian companies. It is almost certain that BK Software deliberately cooperated with Asia Pacific Links Limited, knowing that the end users of the equipment were Russian entities. Furthermore, it has been established that Lupandin had connections with an FSB unit responsible for infiltrating foreign computer and telecommunications networks. Following the recommendation from Lithuanian intelligence, the presence of Lupandin in Lithuania was declared as a threat to national security due to his activities.

BK Software specialises in computer programming. The company on its website states that it develops and continuously improves innovative information management systems and provides customers with effective telecommunications solutions. It also assists with the integration of satellite and terrestrial equipment and distributes equipment from various foreign manufacturers.


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