A German technology firm is under scrutiny after a report by Politico revealed it may have circumvented European Union sanctions to export sensitive technologies to Russia through its Slovenian subsidiary.
The investigation found that Kontron, which operates in the EU, the UK, and the US, facilitated the shipment of over €3.5 million worth of telecommunications equipment to its Russian affiliate, Iskra Technologies, in late 2023. This activity took place despite the EU’s 11th sanctions package, enacted in June 2023, which specifically restricted the export of high-tech and dual-use goods to Russia.
According to export records reviewed by Politico, Kontron’s Slovenian branch sent 11 shipments to Iskra Technologies between July and November 2023 — after the new sanctions were in effect. The shipments included dual-use technologies such as the SI3000 system, which can be used to monitor and intercept telecom traffic.
The company defended the transactions, saying: “After the introduction of the 11th sanctions package, we ceased the export of new goods and only fulfilled deliveries under already approved export licenses in accordance with current EU sanctions.” Kontron added that these exports were conducted under valid permits issued by the Slovenian government and were linked to pre-existing contracts.
Despite publicly announcing its exit from the Russian market and condemning the invasion of Ukraine, Kontron reportedly continues to maintain a presence in Russia through Iskra Technologies. The subsidiary was added to the EU sanctions list in December 2024. Kontron retains a 48.4% stake in Iskra via its Slovenian unit, though it declined to disclose the identity of the majority shareholder, describing it only as a “Russian entity not affiliated with state-owned companies.”
Further details in the investigation revealed that Kontron’s Slovenian branch also sent at least 49 shipments of the SI3000 system and spare parts to Kazakhstan after June 2023. In addition, Iskra Technologies merged in August 2023 with Russian firm RTSoft, which had held an FSB-issued license for handling classified information since 2016 — a license Kontron claims was revoked in April 2022.
Slovenian financial records show Kontron d.o.o. had a €3.546 million loan to Iskra Technologies due by 2027, and wrote off another €6.393 million in 2022. While EU sanctions ban financial support to blacklisted entities, Kontron asserts that the loans have undergone sanctions compliance checks and remain in force.
