UK firm defies sanctions, sells $1.2bln worth of electronics to Russia

By Al Mayadeen English
Source: The Financial Times
8 Apr 2023 00:26
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The Financial Times claims that the advanced tech was either sold to Russia directly or through entities in other countries mainly China.

Plastic letters arranged to read "Sanctions" are placed in front of the Union Jack and Russian flag colors in this illustration taken February 28, 2022. (Reuters)

A London-registered business has sold $1.2 billion worth of electronics that reached Russia after the beginning of the war in Ukraine, despite the UK's sanctions on Moscow, the Financial Times reported on Friday.

According to a list of goods sold obtained by the newspaper, at least $982 million of the products sold by Mykines Corporation LLP, ranging from brands such as Huawei and Intel, AMD, to Apple and Samsung, including semiconductors, servers, laptops, computer parts, telecoms network hardware, and consumer electronics, were shipped to Russian entities or individuals or entities in other countries - mainly China - where they were eventually shipped to Russia.

The company's shipments are also listed on Russian records, and despite being actively trading with the country before the start of the war, the record shows that sales exponentially increased a year later.

This incident significantly questions the ability to prevent Russia through sanctions and restrictions from obtaining critical technology that can be used for military purposes, the report added.

A British government spokesperson said, “All businesses registered in the UK are bound by law to comply with the Russia sanctions regime. We take potential breaches very seriously, but do not discuss the details of how we enforce trade sanctions for specific cases.”

The shipments also urge questions about the effectiveness of the UK's secrecy jurisdictions, given that Mykines’ account records from the previous year reveal that the corporation transferred its profits to two unknown entities in the British Virgin Islands.

The majority of the 10,600 records of goods sold went to Marsala, a Moscow-based firm.

According to Russian records, the overwhelming majority of Marsala's imports are from Mykines. The report claims that the firm is strongly linked to Merlion, a large tech distributor in Russia.

Russian official listings show that Marsala stated that Microcontract - a firm that owns a joint venture with Novgorod State University Engineering Center - is one of its counterparties.

The report said the center was launched in collaboration with Rostec - a state-owned military company - and lists its area of expertise in drones, aviation, and microchips in addition to sensors.

Upon visiting the house in Southgate, Enfield - owned by Savvas Themistocleous - where Mykines is registered, the FT found that there is another active company registered to the house as well.

Themistocleous told the newspaper that in 2013, he established “Russian Trading Company Ltd" as the sole owner, but currently, a 53-year-old Ukrainian residing in Ukraine has "significant control” over Mykines, and Themistocleous promised the newspaper he would pass on their questions to him.

Denirello LLP, the other company listed at the address, also did business with Russia before the war, but after sanctions were introduced, records show that sales to Russia stopped altogether.

The firm described itself as “a dynamic diversified company distributing medical, industrial and IT equipment in Russia and CIS [Commonwealth of Independent States]."