Two Belarusian citizens — a father and son — and a company they controlled have been convicted in Lithuania of subsidy fraud linked to an EU-funded satellite navigation project managed by the EU Agency for the Space Programme.
The case concerned a Lithuania-based company that obtained EU funding to develop high-precision satellite navigation receivers for agricultural use, including guiding machinery and supporting precision farming, the European Public Prosecutor’s Office (EPPO) informed on Tuesday.
The project had a total budget of €1,064,933.81, with €745,453.67 funded by the EU Agency for the Space Programme (EUSPA), and €447,272 effectively paid out.
To receive the funding, the company submitted a “declaration of honour” to EUSPA stating it was not subject to EU restrictive measures and had no links to sanctioned entities.
The company changed ownership in April 2022, shortly after Russia’s invasion of Ukraine, with a family member holding US citizenship and a Lithuanian national appointed to lead it.
Links to sanctioned military-industry entities
The investigation found the two Belarusian citizens continued to effectively control the company while holding leading positions in a Russia-based firm that develops and tests satellite navigation chips for military applications and is subject to EU sanctions, the EPPO said.
One of the defendants acquired Russian citizenship between 2020 and 2021, and held shareholdings in other companies with direct and indirect links to military programmes and cooperation with Russian and Belarusian military industries, some of which are subject to EU restrictive measures.
The defendants pleaded guilty and repaid €447,272, which the EPPO said was the damage to the EU.
They were convicted of subsidy fraud committed jointly with others, and of forgery and the use of forged documents.
The Vilnius District Court fined the son €36,000 and the father €34,500, with both amounts reduced by one third under a simplified procedure, and custody time credited at €300 per day. The final amount payable was €2,100 for the son and €22,700 for the father.
The company was fined €36,000, reduced by one third, leaving a final amount of €24,000.
The investigation was supported by Lithuania’s Financial Crime Investigation Service, known as FNTT.
