International and national sanctions are an important foreign policy instrument used to restrict violations of international law and strengthen security. They impose limitations on access to financial funds and economic resources for sanctioned individuals and related entities.
Not all companies with sanctioned individuals involved in their structure cease operations. Data shows that some of them continue to exist, submit financial statements, and pay taxes.
The information compiled by Crediweb on legal entities registered in Latvia with sanctioned subjects allows for a more detailed analysis of their activities and current situation.
Currently, based on data from the Financial Intelligence Unit of Latvia and Crediweb, 34 legal entities have been identified whose structure includes sanctioned subjects (excluding three associations that have been removed from the register).
Distribution of legal entities with sanctioned subjects by legal form
| Legal form | Number of entities | Share (%) |
|---|
| Limited Liability Company | 24 | 70.6% |
| Foundation | 3 | 8.9% |
| General Partnership | 2 | 6% |
| Public Limited Company | 1 | 2.9% |
| Foreign Representative Office | 1 | 2.9% |
| Branch of Foreign Company | 1 | 2.9% |
| Sole trader | 1 | 2.9% |
| Political Party | 1 | 2.9% |
The majority are limited liability companies – 24 entities, or nearly 71%. The remaining cases are significantly fewer and include foundations, general partnerships, a public limited company, branches and representative offices of foreign merchants, a sole trader, and even one political party.
Sanctioned individuals may be involved in company structures in various ways – as board members or chairpersons, owners, shareholders, beneficial owners, or actual controllers. This means that the impact of sanctions on a company can be either direct or indirect.
From a sectoral perspective, companies with sanctioned subjects operate across a wide range of industries. The largest number is in trade (8 companies), followed by professional, scientific and technical services (4), as well as financial and insurance activities (3).
Distribution of legal entities with sanctioned subjects by sector (NACE Rev.2)
| NACE sector | Number of companies | Share (%) |
|---|
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 7 | 22.8% |
| Professional, scientific and technical activities | 4 | 11.4% |
| Financial and insurance activities | 3 | 8.6% |
| Electricity, gas, steam and air conditioning supply | 2 | 5.7% |
| Transportation and storage | 2 | 5.7% |
| Accommodation and food service activities | 2 | 5.7% |
| Real estate activities | 2 | 5.7% |
| Administrative and support service activities | 2 | 5.7% |
| Human health and social work activities | 2 | 5.7% |
| Agriculture, forestry and fishing | 1 | 2.9% |
| Information and communication | 1 | 2.9% |
| Public administration and defence; compulsory social security* | 1 | 2.9% |
| Other service activities* | 5 | 14.3% |
* - includes legal entities that have been liquidated or removed from the register.
To a lesser extent, such companies are also found in energy, transport and storage, real estate, administrative services, healthcare, accommodation and food services, as well as agriculture.
Interestingly, the presence of sanctions does not always mean an immediate cessation of business activity. Of the analyzed companies, 20 have submitted annual reports for 2024, and some have already submitted reports for 2025. At the same time, there are companies with suspended operations or ongoing liquidation processes, but overall, a number of them continue to exist and fulfill their obligations.
Additional insight is provided by tax data. In the fourth quarter of 2025, 14 legal entities made tax payments (total taxes administered by the State Revenue Service), while 14 companies did not. For the remaining entities, information is not available or they fall under legal forms where such payments are not applicable. This further demonstrates that the actual level of activity among these companies varies significantly.
A more detailed look at the largest companies shows how different the reality behind financial indicators can be.
Largest companies with sanctioned subjects by turnover
The highest turnover in 2024, EUR 7.4 million, was recorded by
SIA “Riga Fertilizer Terminal”. However, this figure does not reflect active business operations in the usual sense. The company’s activities were fully frozen in March 2022 in accordance with European Union sanctions applied to its beneficial owner, Dmitry Mazepin. Under these sanctions, all company funds and economic resources are frozen, and it is prohibited to make them available. Despite this, the company continues to generate revenue, primarily from cargo storage rather than its former core activity of cargo handling. At the same time, the company continues to meet certain obligations – in the fourth quarter of 2025, it paid EUR 207.62 thousand in taxes, the highest amount among the analyzed companies.
A similar, though slightly different situation can be observed in
SIA “Klauģu Muiža RE”. Here too, the company’s beneficial owner, Pjotrs Aven, is subject to European Union sanctions, and since March 2022 the company’s economic activity has been suspended. In accordance with the regulation, its funds are frozen and it cannot generate income from core business activities. However, the company has not been liquidated – it continues to exist, maintain its assets, and ensure the minimum level of activity required for a legal entity. In 2024, the company reported a small turnover of EUR 216 thousand and losses of EUR 1.2 million, while retaining employees and continuing to pay taxes – EUR 90.26 thousand in the fourth quarter of 2025.
Meanwhile,
Uralkali Trading SIA illustrates yet another scenario. The company’s activity has been significantly reduced in recent years, and in 2022 a strategic decision was made to gradually wind down operations and consider liquidation. By the end of 2024, the liquidation process had not yet been initiated, and a final decision was planned for 2025. Notably, despite very low turnover of only EUR 16 thousand in 2024, the company reported substantial profit exceeding EUR 28 million. This profit is not linked to current operations but rather to the recovery of previously accumulated receivables. In this case as well, the beneficial owner is Dmitry Mazepin, who is included in sanctions lists. In the fourth quarter of 2025, the company paid EUR 23.15 thousand in taxes.
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