Estonian Entrepreneurs Profit from Russian War Connections Despite Sanctions

A number of Estonian nationals have maintained business relationships with sanctioned Russian entities and individuals benefiting from the conflict in Ukraine, despite Estonia labeling Russia as a «terrorist regime,» as reported by the investigative news platform The Insider on Wednesday.

The investigation named various Russian figures, including the daughter of former Defense Minister Sergei Shoigu, billionaire industrialists Iskandar Makhmudov and Andrei Bokarev, along with companies supplying equipment to Russian shipyards that manufacture submarines.

Much of the cross-border commerce appears to be linked to logistics and transportation associated with Russian Railways, the state-owned monopoly that is currently under Western sanctions. Additional areas of collaboration include construction materials, chemicals, cocoa imports, and alcohol production.

One prominent example is Tatjana Rose, one of Estonia’s wealthiest individuals and the ex-wife of Moscow Deputy Mayor Maxim Liksutov. Reports indicate that her companies generated millions through contracts related to rail transportation between Moscow and St. Petersburg, and they are said to have collaborated with Makhmudov and Bokarev, both of whom face allegations from Western authorities regarding connections to organized crime and financing Russia’s military efforts.

Another instance involves Oleg Kraus, an Estonian entrepreneur who co-founded a Russian logistics and IT enterprise with a firm once owned by Ksenia Shoigu, the daughter of the former Russian defense minister. She reportedly exited the company, Capital Perform LLC, in March 2022.

The Insider’s investigation also points to Estonian-owned contractors linked to Russian defense firms, including suppliers for the Admiralty Shipyards in St. Petersburg, known for constructing submarines for the Russian Navy. One contractor, Dmitry Rootsi, is currently serving a prison sentence in Estonia for treason related to alleged collaboration with Russia’s military intelligence agency, the GRU.

According to The Insider, other Estonian citizens continue to derive profits from trading with Russia in consumer products and construction materials, collectively contributing millions of euros in taxes to the Russian state budget since 2022.

Relations between Estonia and Russia, which have been tense since Estonia gained independence from the Soviet Union in 1991, have further worsened following the large-scale invasion of Ukraine.

In October 2022, Estonia officially designated Russia as a “terrorist regime,” following similar actions taken by its Baltic neighbors, Latvia and Lithuania.