Lithuania-registered firms used to evade sanctions, gain Western tech access

Actors allegedly linked to Russia, Belarus used Lithuanian businesses to forge ties with foreign firms

Lithuanian intelligence services (the State Security Department and the Second Investigation Department) have identified a specific pattern: actors are not necessarily creating new companies, but rather reactivating dormant, low-activity businesses to mask their activities. By doing so, they create a facade of legitimacy that allows them to forge ties with foreign firms and bypass Western export controls.

The report specifically named three Lithuania-registered entities allegedly involved in this scheme.

BK Software: Led by a Russian citizen, this firm reportedly partnered with a Russian-owned company in Hong Kong. It is under heavy scrutiny for allegedly supplying critical microelectronics used in the production of Russian drones.

NTLab & Kosminis Vytis: These companies are accused of serving as conduits to acquire Western technologies that have “dual-use” potential—meaning they can easily transition from civilian use to military applications.

This intelligence assessment underscores a significant challenge for Western regulators: it is remarkably difficult to police every small, seemingly inactive company in a globalized economy. By exploiting these “zombie” companies, Russian and Belarusian defense sectors are effectively outsourcing their procurement to bypass the very sanctions intended to degrade their capabilities.

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