Finnish company under investigation for serious sanctions violation after developing experimental vehicle with public funds

A Finnish-based company suspected of a serious sanctions violation developed an experimental 18-wheeled electric tracked vehicle using state funding, Yle reports. The Russian-owned firm, 18 Wheels Oy, later attempted to transfer the prototype to Russia, according to the company’s majority owner.

The Finnish Customs (Tulli) launched a pre-trial investigation into the alleged serious sanctions violation this week. The case centers on the company’s prototype, which it has marketed as the world’s first 18-wheeled electric tracked vehicle. Media coverage of the vehicle has appeared in Finland, Germany, the UK, and the US.

In an email response to Yle, the company’s Russian-born chairman and majority owner—who holds Finnish residency—stated that the customs investigation relates to the experimental prototype. He claimed the project initially received support from Business Finland, a state-owned agency that provides public funding and internationalization services to companies. Records show 18 Wheels Oy received €66,000 in state aid for 2024–2025, though the criteria for the funding remain undisclosed.

After financing dried up in Finland, the owner attempted to relocate operations to Russia for “cost efficiency,” he told Yle. “The export declaration was submitted through the official customs system, listing Russia as the destination,” he wrote. However, he insisted the prototype never left Finland and remains a non-functional test model unsuitable for passenger transport.

The owner framed the situation as a “technical disagreement over classification and regulatory interpretation” rather than deliberate wrongdoing, emphasizing that all actions were conducted “openly and in good faith.” Finnish Customs has not commented on the ongoing investigation.

Serious sanctions violations in Finland typically involve dual-use goods—items with both civilian and military applications—or defense-related materials. The owner claimed the company had consulted Finland’s Ministry for Foreign Affairs to ensure future development complied with “clear and predictable conditions.”

18 Wheels Oy was founded in 2022 by two Russian and one Ukrainian national, with its registered address initially listed at a rental apartment in Lahti. A Finnish-Russian consultant, known for establishing companies for Russian clients, filed its incorporation papers. The company later relocated to Vantaa, with its current postal address registered to a residential apartment in Helsinki’s Sompasaari district.

Since 2023, ownership has rested with two Russians and one Finnish national of Russian background. The trio had minimal prior business activity in Finland. Despite global media exposure, the company’s operations remain limited, with a 2024 turnover of just €60,000 and a loss of over €20,000. Three of its invoices, totaling around €3,600, have gone to debt collection.