On 30 June 2025, Latvian State Security Service (VDD) asked the Prosecution Office to initiate criminal prosecution against the board of a Latvian based company for supplying of various resources for the production of uniforms of the Russian army, valued at more than six million euros.
Two persons – the chairman of the board and a member of the board – are incriminated for the crimes stipulated in Section 772 and Section 195 Paragraph 3 of the Criminal Law, namely, for possible indirect transfer of property to a party involved in an armed conflict taking place outside the territory of the Republic of Latvia, whose action is directed against the territorial integrity of another state, and large scale laundering of criminally acquired resources.
During the investigation, VDD found that the Latvian based company delivered their production – clothing fasteners and other clothing elements – to two Russian companies: BTK Group and Okrug, who then used these materials to manufacture uniforms for the army of the aggressor state. Since Russia’s invasion of Ukraine, more than a thousand tons of the company’s production, valued at more than six million euros, were delivered to the Russian companies. Documents and delivery contracts found during the criminal proceedings contain information that these Russian companies purchased production from the Latvian based company to fulfil an order from the Russian Ministry of Defence.
In addition, VDD investigation revealed that since 2023, the Latvian based company purposefully used other companies, including so-called shell companies, as intermediaries to conceal their illegal cooperation.
Within the criminal case, VDD has initiated proceedings for imposing coercive measures on the company based in Latvia. The Service has currently seized more than half a million euros in cash that were found during searches of sites related to the company. Likewise, several business properties where production took place, as well as private properties were seized, as evidence from the investigation indicates that these properties were acquired by using illegal funds.
VDD initiated the criminal case on suspicion of providing resources to the armed forces of the aggressor state Russia on 13 October 2023.
VDD reiterates that no person shall be considered guilty until the guilt of such person has been determined in accordance with the procedures laid down in law.
Information prepared by VDD
