The “Moscow House” in Latvia has led to a criminal case due to sanctions.
The Latvian State Security Service (VDD) has asked the prosecutor’s office to initiate criminal proceedings against two former leaders of the “Moscow House” for violating sanctions imposed by the European Union. They are suspected of being involved in leasing the building’s premises.
The “Moscow House” appeared in Riga in 2004 when Yuri Luzhkov was mayor of Moscow. The Latvian State Security Service declared that the “Moscow House”, registered as a representative office of Moscow State Unitary Enterprise in Latvia, had been under EU sanctions since 2022 and was transferred to the state in 2014.
“Until the takeover by the Latvian State, the sole shareholder of the “Moscow House” was the Moscow City Property Department, which is subordinated to Moscow City Mayor Sergey Sobyanin and the President of Russia Vladimir Putin. In reaction to Russia’s invasion of Ukraine, V. Putin is included in the EU sanctions list since 25 February 2022, whilst S. Sobyanin – since 21 July 2022. The EU’s current regulatory framework stipulates the obligation to freeze all funds and economic resources owned, held, possessed or controlled by individuals included in the EU sanctions lists. The premises of the “Moscow House” are also considered economic resources and thus are subject of prohibition of use if funds, goods or services are obtained this way,” the State Security Service said.
During the investigation, the Latvian authorities established that after the sanctions were imposed, the management company of the “Moscow House” leased premises to several foundations, companies and individuals, thus illegally obtaining income from these economic resources of the “Moscow House”.
