(Luxembourg, 31 August 2026) – Two Belarusian citizens (father and son) and a company they controlled were found guilty of subsidy fraud in a project to develop high-precision satellite navigation devices for the agricultural sector, following an investigation by the European Public Prosecutor’s Office (EPPO) in Vilnius (Lithuania). The investigation, code-named 'Precision', uncovered strong links between the defendants and Russian and Belarusian military industries, which are subject to EU restrictive measures.
At issue is a Lithuanian-based company that obtained EU funding to develop professional satellite navigation receivers capable of using Galileo’s High Accuracy Service (HAS) for agricultural applications, including guiding agricultural machinery and supporting precision farming operations, despite having links with Russian and Belarusian military industry entities, subject to EU restrictive measures. The total budget allocated to the project was €1 064 933.81, with €745 453.67 funded by the European Union Agency for the Space Programme (EUSPA), of which €447 272 had been effectively disbursed.
In order to obtain the EU funding, the company had to submit a declaration of honour to the EUSPA, stating that it was not subject to any EU restrictive measures and had no links to sanctioned entities. The company, established in Lithuania as owned and managed by the defendants, changed ownership in April 2022, shortly after the Russian aggression against Ukraine. A family member with US citizenship and a Lithuanian national were appointed at its helm, in order to circumvent EU restrictions applicable to Belarusian nationals.
Strong links to Russian and Belarusian military entities
The investigation revealed that the two Belarusian citizens who continued to effectively control the Lithuanian-based company, also held leading positions in a Russian-based company that develops and tests satellite navigation chips for military applications and is subject to EU sanctions. One of the defendants even acquired Russian citizenship between 2020 and 2021 for personal gain. He also held significant shareholdings in other companies with direct and indirect links to entities involved in military programmes and cooperating with the military industries of the Russian Federation and the Republic of Belarus, many of which are subject to EU restrictive measures. In one such company in the Russian Federation, he held the majority shareholding, while a former Russian state security high ranking officer held a substantial stake.
By falsely declaring that the company at the centre of the EPPO investigation had no links to sanctioned entities, the defendants were able to obtain EU funding and gain access to the EU market and geospatial data.
Admission of guilt and compensation
The defendants pleaded guilty and compensated the damage to the EU, amounting to €447 272. They were convicted of subsidy fraud committed jointly with others and of forgery and use of forged documents.
The Vilnius District Court imposed fines totalling €36 000 on the son. As the case was dealt with under the simplified procedure, the fine was reduced by one third, as provided for by the Criminal Code of the Republic of Lithuania. The Court subsequently credited the 73 days he had spent in custody against the fine, at a rate of €300 per day, resulting in a final amount to be paid of €2 100. The father was fined €34 500, reduced by one third. The one day he had spent in custody was credited against the fine at a rate of €300, resulting in a final amount payable of €22 700. Finally, the company was fined €36 000, reduced by one third, resulting in a final amount of €24 000.
European Chief Prosecutor Laura Kövesi said:
'Precision’ demonstrates EPPO’s speed and efficiency in cases involving the circumvention of EU sanctions. This case took us roughly a year from initiation to conviction. It also highlights a very sensitive EU policy area, in which due diligence and preventive measures should be strengthened as a matter of priority. In a broader perspective, it raises the question how EU procurement rules could render criminal infiltration more difficult. Finally, ‘Precision’ makes the case for the extension of EPPO’s competence to the circumvention of EU sanctions. The criminal law response to such attempts must become much more dissuasive than it currently is.
The investigation counted on the support of Lithuania’s Financial Crime Investigation Service (Finansinių nusikaltimų tyrimo tarnyba – FNTT).
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.
- Publication date
- 31 August 2026
- Author
- European Public Prosecutor’s Office