The news agency LETA identified the company as AS “Arta-F” (it was not named by the VDD) which is believed to have provided materials for the production of Russian army uniforms worth more than six million euros.
The chairman of the board of the company and a member of the board face charges of indirect transfer of property to a party involved in an armed conflict outside the Republic of Latvia, whose activities are directed against the territorial integrity of another state (Article 77.2 of the Criminal Law, and legalization of proceeds of crime on a large scale (Article 195.3 of the Criminal Law) – essentially, money laundering.
Delivered more than 1,000 tonnes of products
During the investigation, the VDD found that the company registered in Latvia had supplied its products – clothing fasteners and other elements of military uniforms – to two companies registered in Russia – “BTK Group” and “Okrug”, which used these items to produce uniforms for the army of the aggressor country.
In total, more than 1,000 tonnes of the company’s products worth more than six million euros were delivered to these Russian companies after Russia’s invasion of Ukraine. Documents seized during the criminal procedural actions carried out by the VDD, including supply contracts, contain information that these Russian companies purchased products from a company registered in Latvia to fulfill an order from the Russian Ministry of Defense.
In an additional investigation, the VDD found that the company had intentionally used other companies, including so-called shell companies, as intermediaries to conceal this illegal cooperation since 2023.
Cash and real estate seized
The VDD said it had seized more than half a million euros in cash, which was secured during a search of premises related to the company, as well as “Several real estate properties linked to the company, where production took place.”
The VDD has been on the case for a long time. It initiated criminal proceedings on suspicion of providing resources to the aggressor state, the Russian army, on October 13, 2023 and sent its request to the prosecutor’s office on June 30 this year.
Information from public company registers indicates that “Arta-F” was first registered in 1991. The company’s true beneficiaries are Vladislavs Andrejevs and Vitaly Andrejevs.
In 2022, Arta-F’s turnover was 8.062 million euros, and its profit was 983,930 euros. Until 2024, the Chairman of the Board was Vladislav Andrejevs, and the Board member was Vitalijs Andrejevs.
In 2022, the company had a turnover of 8,061,878 euros and a profit of 983,930 euros yet in 2024, the company was declared bankrupt and currently owes more than 100,000 euros in taxes.
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