Electronics exported

USA sanctioned Russian entrepreneur in Vienna

The US Treasury Department placed the entrepreneur with Vienna connections on the sanctions list.

(Bild: APA/Associated Press)

A Russian entrepreneur living in Austria is accused of circumventing US sanctions against Russia. He is alleged to have exported microelectronics via Hong Kong. Officially, Sergej M. is engaged in transportation consulting and beauty consulting in Vienna. The USA has sanctioned the entrepreneur.

The sanctions against M. are formally related to the equally sanctioned Hong Kong company IPM Limited, which, according to a statement from the Office of Foreign Assets Control (OFAC) in the US Treasury Department, delivered "hundreds of shipments of microelectronics" to the US-sanctioned technology company Uniservice in St. Petersburg. Components for machine tools were also transported to Russia, it said. The director of IPM is a Russian citizen living in Austria, Sergei M., who is now listed for his current or former role in the Hong Kong company.

Company offered help with logistical issues
Before its website went offline on Thursday, IPM offered support with logistical issues all over the world from its "headquarters in Hong Kong and other offices in Austria and Russia". It was also explicitly stated that the company would help to clear customs without the risk of sanctions and confiscations.

However, the sanctions imposed would be reflected in corresponding EU regulations, explained the Directorate of State Security and Intelligence.

(Bild: Andrey Kuzmin - stock.adobe.com)

In Austria, the company from the Special Administrative Region of the People's Republic of China, which has now been sanctioned by the USA, was the majority shareholder of SAM Transport & Beautyconsulting GmbH until March 2023. These shares were then transferred by IPM Limited to the minority shareholder and managing director Sergej M.

Business flourished in 2022
According to the company register, the company, based in an inconspicuous apartment building in Vienna's 8th district, is involved in both transport consulting and beauty consulting. On an official website, however, the company positions itself exclusively as a wholesaler of Korean cosmetics. After rather quiet years since the company was founded in 2018, published annual financial statements show a massive intensification of the Viennese company's business activities in 2022 - relevant indicators grew threefold and more compared to 2021.

This current listing relates to sanctions imposed by the US authority OFAC, but sanctions relevant to Austrian authorities can be found in corresponding EU regulations, said a spokesperson for the Ministry of the Interior, explaining the position of the Directorate of State Security and Intelligence (DSN), which is responsible for sanctions issues. "However, all information that points to possible circumvention of sanctions is assessed by the DSN and investigations are initiated if necessary," he emphasized. However, it is not possible for the Austrian authority to publicly communicate or comment on personal data.