Two Belarusian citizens (father and son) and a company they controlled were found guilty of subsidy fraud in a project to develop high-precision satellite navigation devices for the agricultural sector, following an investigation by the European Public Prosecutor’s Office (EPPO) in Vilnius (Lithuania). The investigation, code-named “Precision”, uncovered strong links between the defendants and Russian and Belarusian military industries, which are subject to EU restrictive measures.
At issue is a Lithuanian-based company that obtained EU funding to develop professional satellite navigation receivers capable of using Galileo’s High Accuracy Service (HAS) for agricultural applications, including guiding agricultural machinery and supporting precision farming operations, despite having links with Russian and Belarusian military industry entities, subject to EU restrictive measures. The total budget allocated to the project was €1 064 933.81, with €745 453.67 funded by the European Union Agency for the Space Programme (EUSPA), of which €447 272 had been effectively disbursed.
In order to obtain the EU funding, the company had to submit a declaration of honour to the EUSPA, stating that it was not subject to any EU restrictive measures and had no links to sanctioned entities. The company, established in Lithuania as owned and managed by the defendants, changed ownership in April 2022, shortly after the Russian aggression against Ukraine. A family member with US citizenship and a Lithuanian national were appointed at its helm, in order to circumvent EU restrictions applicable to Belarusian nationals.
Strong links to Russian and Belarusian military entities
The investigation revealed that the two Belarusian citizens who continued to effectively control the Lithuanian-based company, also held leading positions in a Russian-based company that develops and tests satellite navigation chips for military applications and is subject to EU sanctions. One of the defendants even acquired Russian citizenship between 2020 and 2021 for personal gain. He also held significant shareholdings in other companies with direct and indirect links to entities involved in military programmes and cooperating with the military industries of the Russian Federation and the Republic of Belarus, many of which are subject to EU restrictive measures. In one such company in the Russian Federation, he held the majority shareholding, while a former Russian state security high ranking officer held a substantial stake.
By falsely declaring that the company at the centre of the EPPO investigation had no links to sanctioned entities, the defendants were able to obtain EU funding and gain access to the EU market and geospatial data.
