US Blacklists Finnish Firms Luminor, Siberica, and Evolog for Russian Ties

US Blacklists Finnish Firms Luminor, Siberica, and Evolog for Russian Ties

In a recent development that has sent ripples through international commerce and trade, the US Department of Commerce has blacklisted three Finnish companies – Luminor, Siberica, and Evolog – due to their ongoing associations with Russia. This decision follows the prior placement of Luminor and Siberica on a Russia-connected sanctions list by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC). The blacklisting has resulted from the firms’ involvement in the supply chain of a St Petersburg-based firm that manufactures drones for the Russian military. Consequently, US companies are now prohibited from selling products or services to these blacklisted companies without proper authorization.

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US Blacklists Finnish Firms: Global Impact and Finnish Companies

These three Finnish companies are part of the 28 firms worldwide added to the updated list. Interestingly, ten other Finland-based companies were already on the list before these additions. Evolog, Luminor, and Siberica are the first Finnish firms to be blacklisted since Russia’s invasion of Ukraine in February 2022. The ramifications of these actions are significant in the realm of international trade, with potential ripple effects impacting various sectors and economies globally.

Adding another layer to this complex development, Gabriel Temin, the CEO of Luminor and Siberica, was taken into custody last week by the Eastern Uusimaa district court. The charges against him include suspicion of an aggravated economic regulation offence and the export of military equipment. The alleged offences are believed to have occurred between April 2022 and September 2023. His detention was requested by the Finnish Customs office, adding another dimension to the unfolding saga.

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Fiscal Performance of Blacklisted Companies

Luminor, a Vantaa-based logistics firm, had a turnover last year of 14.7 million euros and a profit of 447,000 euros. This represented a 600% increase on the previous year’s turnover. On the other hand, Siberica, a warehousing company also located in Vantaa, had a turnover of just under 700,000 euros last year, reporting a loss of 23,000 euros. The blacklisting could potentially impact the future performance of these companies, given the restrictions placed on their operations.

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