A commercial structure created to supply prohibited goods to the Russian Federation has been dismantled

Agents from the National Police and the Tax Agency’s Customs Surveillance Unit, in collaboration with the National Intelligence Center (CNI), have arrested three people for their alleged involvement in a crime of smuggling prohibited goods. The arrests took place on June 10 in the province of Valencia, and the headquarters of a commercial company in the Alicante town of Sant Vicent del Raspeig were searched. Various computer equipment, electronic devices, and documentation were seized and are being analyzed by specialists.

The detainees used a commercial company created for this purpose as a front company to conceal the shipment of dual-use material to the Russian Federation, violating current prohibitions. To do so, they employed a triangulation scheme, using companies located in other countries to conceal the final destination of the material, with one of the detainees acting as a front man.

Operation Sharma-Konturi

The investigation began in early 2024 when agents learned of the purchase and sale of a commercial company based in Spain dedicated to the international trade of machinery.

After various procedures, investigators discovered how the detainees used the company created for this purpose to facilitate the export of the products through various European customs offices, declaring a third country as the fictitious final destination for the machinery. From there, it would subsequently be re-exported to the Russian Federation, the true final destination of the goods, using classic logistical, documentary, and financial triangulation mechanisms. This allowed them to circumvent the controls established for the export of defense and dual-use material.

The detainees also falsified the documentation and labeling of the products in order to conceal the true nature of the material included in the embargo imposed on Russia.

In this operation, agents confirmed the export of various embargoed machinery worth hundreds of thousands of euros. At the center of this business network was a Russian company sanctioned by international organizations.

Automated dual-use tools

Exported dual-use machinery consists of automated machine tools capable of producing complex parts. They are primarily used in mass production industries, such as the automotive metalworking industry, the aerospace industry, and even the military industry. These machining centers, which, due to their capabilities, may have applications in the military industry, are considered dual-use equipment under European regulations.

Crime of smuggling prohibited goods

Thanks to the efforts of investigators, a commercial structure created to supply prohibited material to the Russian Federation has been dismantled, thus preventing further shipments of this type of material.

Operation Sharma-Konturi is being directed by Central Investigative Court Number Two of the National Court and was jointly implemented by the General Intelligence Commissioner’s Office, the Deputy Directorate of Customs Surveillance of the Tax Agency, and the National Investigation Unit (CNI). It also had the support of the Provincial Intelligence Brigades of Valencia and Alicante, and the Regional Customs Surveillance Areas of Catalonia and Valencia.