Sanctions on Bar-based companies for military cooperation with Russia

On 30 October, Bar-based International Business Corporation, owned by Russian citizen Sergey Kokorev, was placed on the sanctions list by the US Department of the Treasury (US Treasury) for what it said was military support to Russia.

According to an Office of Foreign Assets Control (OFAC) document, Kokorev and his company transhipped machining centres and ball bearings of European origin for customers in Russia, including AMS Technika, a company involved in the wholesale of industrial machinery and equipment.

This is the first Montenegrin company to be sanctioned for exporting dual-purpose goods to Russia.

In 2022, after several delays, the Montenegrin government joined the European Union’s sanctions against Russia over the invasion of Ukraine. The sanctions include freezing the assets of Russian citizens and companies.

Radio Free Europe has sent a question to the government asking how the implementation of the sanctions in Montenegro is being monitored.

The US imposed the sanctions on the same day that the European Commission report on Montenegro was published, which stated that Podgorica was in full compliance with the sanctions against Russia.

What is known about Kokor’s business?

Kokorev has owned the company since 27 May 2021.

The company was registered in 2011 and has changed owners and directors several times, and is registered as a non-specialised wholesaler based in Bar, approximately 50 kilometres from Podgorica.

In 2021, this company recorded a turnover of around EUR 24 thousand. In 2022, their turnover increased to 298 thousand euro, while they ended last year with 934 thousand euro in revenue.

According to the data of the commercial database Sinomix with details of international trade, analysed by the RSE, the International Economic Company exported goods worth 42 thousand euros in four shipments to AMS Technics from Russia.

The exported items were spare parts for C-series machining centres, including hydropneumatic accumulators, ball bearings and air filters.

The exported goods include those with a tariff heading on the ‘priority’ list of high-risk products subject to US and EU sanctions against Russia.

The sanctioned goods, worth around €19,000, were re-exported via China.

According to the US Treasury Department’s OFAC website, Sergey Kokorev is of Russian nationality.

Another Kokorrev company with a foreign arms trade licence

Kokorev’s company Interlex, based in Bar, was established in 2015.

According to their website, the company’s main activity is export-import business to global markets, and the company is registered and licensed to conduct foreign trade in arms and military equipment.

“The company has experience in multi-purpose metalworking equipment, instrumentation and analytical equipment for a wide range of applications, 3D design tools and equipment. Also in the field of hydropower potential, such as mini power plants including hydroelectric, natural gas…” .

It is added that the company is competent to develop production lines for various purposes with the participation of European engineering companies.

RSE reportedly did not export to Russia through this company.

Sanctions were imposed on 30 October on around 400 individuals and companies from various countries, including a company from Serbia.

Over the past two years, the US and Treasury have placed more than 4 000 entities and individuals on the sanctions list for links to Russia./RSE/