Banks, Estonia, EU – Baltic States, Financial Services, Legislation, Russia

After Russia annexed Crimea in 2014, the US responded with sanctions against government ministers, companies and oligarchs with ties to the war in Ukraine. According to SVT, one of the companies that was put on the list and prevented from doing business with the EU and US was the crown of the Russian weapons industry – the gun maker Kalashnikov.

Now, SVT reveals that the business network of Russian oligarch Iskander Mahkmudov – shareholder of Kalashnikov Group in Russia and the biggest client of Swedbank Estonia, has funneled over one million euros to counterparts at Kalashnikov USA.

The payments were sent in four transactions, from companies registered in the tax haven of the British Virgin Islands. The money was deposited in accounts at Bank of America controlled by key people at Kalashnikov USA. 

One of them is the company’s founder and owner, a Russian citizen living in Florida.

According to Swedbank, the information provided by SVT was known by the bank and is still under investigation. All conclusions of the internal investigation, which looks at 30 bn transactions during the years 2007-2019, will be published early next year.