Latvia has launched an investigation into the KLC group for evading sanctions

The Latvian State Security Service (VDD) has launched an investigation into possible links between KLC Group SIA, a company registered in Jurmala, and the Russian military-industrial complex. The security services' interest was sparked by a journalistic investigation published on May 20 by The Insider.

According to The Insider, in 2024, KLC Group exported industrial equipment for production automation worth approximately US$1.3 million to Russia. The shipments included components from leading Western manufacturers such as Siemens, Schneider Electric, Rockwell Automation, and Intel. Although the products were officially sent in transit through Kazakhstan and Kyrgyzstan, they ultimately ended up at enterprises that fulfill state defense orders for the Russian Federation. Among the final recipients are the Russian companies ITC and ITC-Project.

The end users of the equipment also include the following companies: Chelyabinsk Radio Plant Polyt, Zaslon, Siversky Pipe Plant, Taganrog Metallurgical Plant, and Lanit-Nord.

According to the Latvian publication Lente, the VDD is investigating grounds for opening a criminal case against KLC Group on suspicion of circumventing sanctions. The Latvian Tax Service reiterated that the transit of sanctioned products through the country's territory to Russia is prohibited, even if third countries are indicated as final destinations in the documents.

In March 2025, amendments to the Criminal Code came into force in Latvia, which increased the liability for violations of the sanctions regime. In cases involving the illegal supply of dual-use goods, violators face up to 12 years in prison.

The KLC Group did not respond to inquiries from The Insider. The owner of the company, Roberts Kalve, had not publicly commented on the allegations at the time of publication.

Western equipment supplies received by Russia in circumvention of sanctions are critical to the functioning of its military-industrial complex. Industrial automation systems control key production processes such as temperature, pressure, power, and gas and fluid flow regulation. They are particularly important for companies in the chemical, energy, and machine-building industries.

Source: The insider