Photo: VDD (X)
Latvia’s State Security Service (VDD) has launched an investigation into possible ties between the Jūrmala-based company KLC Group SIA and the Russian military-industrial complex. The authorities took interest in the firm following an investigative report published by The Insider on May 20.
The Insider’s investigation found that in 2024, KLC Group exported approximately $1.3 million worth of industrial automation equipment to Russia. The shipments included products from major Western manufacturers including Siemens, Schneider Electric, Rockwell Automation, and Intel. Though officially routed through Kazakhstan and Kyrgyzstan, the equipment ultimately ended up at enterprises fulfilling Russian state defense contracts. The final recipients were Russian firms “ITC” and “ITC-Project.”
Among the listed end-users of the equipment were JSC Chelyabinsk Radio Plant “Polet,” JSC Zaslon, JSC Seversky Pipe Plant, JSC Taganrog Metallurgical Plant, and LLC Lanit-Nord.
According to Latvian outlet Lente, the VDD is considering opening a criminal case against KLC Group for circumventing sanctions. Latvia’s tax authority noted that the transit of sanctioned goods through Latvian territory en route to Russia is prohibited — even if third countries are listed as the official destination.
In March 2025, amendments to Latvia’s Criminal Law came into force, increasing penalties for the violation of sanctions. In cases involving the transfer of dual-use goods, offenders could face up to 12 years in prison.
KLC Group did not respond to inquiries from The Insider. As of the time of publication, the company’s owner, Roberts Kalve, had not commented on the allegations.
The Western goods Russia received in circumvention of sanctions play a vital role in the country’s military-industrial complex. Industrial automation is essential for the operation of large-scale factories, as these systems monitor temperature, pressure, and equipment power; they also control gas and fluid flow. They are especially critical in industries such as chemicals, energy, and the production of machinery.
