FLSmidth investigates potential breach of sanctions on Russia

Danish mining equipment and cement technology supplier FLSmidth said in a statement on Friday it was investigating whether it had failed to comply with sanctions after finding it had provided certain pre-contract tender materials to Russia.

The company said it had found, as part of an ongoing internal probe, that it had provided materials to persons in Russia in connection with a limited number of potential projects in Kazakhstan.

The company has ceased the pursuit of the tenders, it added.

Asked about which sanctions FLSmidth might have breached, the company said in an emailed statement it had notified both the US and the Danish authorities.

“As the investigation is still ongoing, the information we can share at this time is contained in the press release,” the company said.

The US and the European Union imposed sweeping sanctions on Russia following its full-scale invasion of Ukraine in 2022.

The tender activities, which took place before 2026, could constitute services within the scope of applicable sanctions regulations and conflict with internal procedures, FLSmidth said.

The tender materials were provided at the proposal stage without project contracts having been concluded, the company said, referring to preliminary findings from its investigation.

FLSmidth said it was notifying relevant authorities, including the US Treasury’s Office of Foreign Assets Control and the Danish Business Authority, and that it will cooperate with authorities as its internal investigation progresses.

The company said it was in the process of reviewing and enhancing its compliance program and risk management measures as well as other mitigating actions.

(By Louise Rasmussen; Editing by Sharon Singleton)