Investigative techniques and analysis of bringing to liability are presented
VB PARTNERS, together with our Client, Olexander Dubilet, initiated the Total Isolation of russia* project to make EU and US companies that violate a ban on the supply of arms and dual-use goods to russia liable.
The team, led by Partner Denys Bugay, investigated over 10 of the most cynical cases in various jurisdictions, including the USA, Belgium, France, and others.
Thanks to the expertise and experience in the practice of Corporate Investigations, the lawyers successfully work on cross-border cases related to the illegal supply of components used for military purposes to russia.
How to detect a breach of sanctions? We have built our own algorithm, which consists of 4 stages.
- INVESTIGATION AND EVIDENCE COLLECTION
We study video recordings of volunteers and military experts who inspect russian military equipment from the scene. In those samples, we look for Western equipment or components used by the russian military industry.
In addition, we collect information from open sources – media, state registries, public initiatives and analyze data using the OSINT methodology**.
To verify the facts, we analyze the history of the production and modernization of russian weapons and establish the time intervals for the delivery of sanctioned goods by foreign companies.
We also study the reports of foreign think tanks, such as the Royal United Services Institute (RUSI), which specializes in international security and military issues.
- LEGAL ANALYSIS AND EVALUATION
Then, based on the findings of the investigation, we prepare statements to authorized bodies that monitor compliance with the sanctions policy.
If it`s about an EU company, we turn to the European Commission, if it is a US company, we turn to OFAC (Office of Foreign Assets Control).
We also send statements to the law enforcement authorities of the country where the offending company is registered. It is important that, depending on the jurisdiction, liability for violations of sanctions can be not only administrative, but also criminal.
- REPUTATION (NON-LEGAL) STAGE
We analyze the corporate structure of the offending company, find out all its stakeholders and inform the interested parties about the violation: (1) shareholders, (2) financial monitoring bodies, (3) banks, (4) non-governmental organizations of which the offending companies are members, (5) stock exchanges on which the offending companies/their founders, etc., are listed.
In this way, we not only create a reputation «discomfort» for the offender but also ensure no additional financing for the company that cooperated with the russian federation.
- POLITICAL STAGE
Our expertise in breaches of European and US sanctions is used successfully at the political level.
The results of our investigations were used for the preparation of the report by the delegate from Ukraine at the PACE session – a People’s Deputy of Ukraine, a permanent member of the delegation of the Verkhovna Rada to the Parliamentary Assembly of the Council of Europe.
The speaker called on the countries whose residents violated the sanctions to conduct an investigation based on the facts that we have provided.
Furthermore, with our participation, a draft of questions to the Committee of Ministers of the Council of Europe on monitoring compliance with sanctions has been prepared.
Our global task is to achieve military goals in favor of Ukraine, in particular, to limit the activities of companies that directly or indirectly provide russia with weapons.
As a result, the russian military-industrial complex will not be able to function fully without new models of weapons or components, with which it enhances its own «scrap metal».
Read more about the investigation of sanctions violations by EU and US companies in our next publications.
*The Total Isolation of russia project is carried out at the initiative of banker and financial expert Oleksandr Dubilet.
**OSINT (Open source intelligence) is a method of obtaining and using military information from open sources, used for decision-making in the field of national defense and security, investigations, etc.