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In 2024, the Latvian-registered company KLC Group SIA, based in Jūrmala and founded by Latvian citizen Roberts Kalve, exported $1.3 million worth of Western-made industrial automation equipment to Russia, despite sanctions imposed by the European Union. The Insider has learned that the equipment — which included components from major multinationals such as Siemens, Schneider Electric, Rockwell Automation, Intel, and others — ended up in the hands of suppliers working with companies fulfilling Russian government defense contracts. Among the items shipped were:
- Industrial automation control panels made by Siemens, Wago Kontakttechnik, and STM Products
- Connector equipment made by Weidmüller Interface, Stäubli Electrical Connectors, TE Connectivity, ODU, and Harting Electric (used in automation circuits)
- Switching devices made by Fratelli Giacomello, Schneider Electric Industries, and Pilz
- Automation systems made by Rockwell Automation and Phoenix Contact; cables made by Rittal, ABB Stotz-Kontakt, and U.I. Lapp
- Measuring instruments made by Endress+Hauser (including devices for measuring liquid levels and flow rates) and IFM Electronic (including thermometers)
- Rangefinders made by Wenglor Sensoric
- Electrical circuit protection devices made by Vishay Intertechnology, ABB, and SIBA
Shipping documents indicate the equipment passed through Kazakhstan and Kyrgyzstan, with local firms such as Tradeexpert («Трейдэксперт»), Company Electronics («Компания Электроникс»), and Protorg («Проторг») listed as importers. These entities appeared to act as intermediaries, giving “instructions” for the transactions. However, The Insider discovered that the true buyers were two Russian firms: ITC («Ай Ти Си») and ITC-Project («Ай Ти Си - Проект»).
While Vilnius is often listed as the shipping destination in paperwork, other listed locations include Dresden and Istanbul. However, the actual recipients were Russian firms tied to defense and industrial sectors.
Court documents from arbitration cases provide further indication that the end-users were Russian companies. These cases mention shipments from Russian firms ITC and ITC-Project, both of which cooperated with the Latvian-registered KLC Group. The Russian firms have been involved in extensive litigation in Russia, allowing partial insight into the supply chain via court filings.
Known destinations of these shipments (during various periods from 2022 to 2024) include:
- JSC Chelyabinsk Radio Plant “Polet,” which received goods from ITC “in fulfillment of a state defense order”
- JSC Zaslon, which received Intel microchips that were later determined in court to have been previously used
- JSC Seversky Pipe Plant (link to arbitration case)
- JSC Taganrog Metallurgical Plant (link to arbitration case)
- LLC Lanit-Nord, which received automatic circuit breakers from ITC
KLC Group did not respond to a request for comment from The Insider. Meanwhile, Latvia’s State Revenue Service told Baiba Krastiņa of the LETA news agency that the transit of sanctioned goods through Latvia to Russia is prohibited — even if a third country is declared as the final destination.
The Western goods Russia received in circumvention of sanctions play a vital role in the country’s military-industrial complex. Industrial automation is essential for the operation of large-scale factories, as these systems monitor temperature, pressure, and equipment power; they also control gas and fluid flow. They are especially critical in industries such as chemicals, energy, and the production of machinery. Given the importance of reliability, Russian firms generally favor equipment from established Western manufacturers. Substituting these systems with Chinese alternatives carries the risk of malfunctions and potential production disruptions.