Supply Chain and Third-Party Due Diligence

Background

A defence equipment supplier with over 200 completed contracts for NATO member defence agencies (98% delivered on time and within budget, repeat order rate above 80%) commissioned supplier due diligence on a ventilation equipment vendor. The concern was potential links to Russia and associated sanctions exposure.

What We Did

We conducted a full investigative due diligence review of the supplier, combining corporate registry analysis with a detailed examination of customs invoices and logistics data. Trade routes were reconstructed to identify where goods were actually moving versus where documentation indicated they should be going. A compliance screening against relevant sanctions lists was run in parallel.

Key Findings

The customs and logistics analysis revealed a pattern that didn't match the declared supply chain:

• Goods were being routed indirectly through Kazakhstan before reaching their final destination in Russia — a classic transshipment structure used to obscure sanctions exposure
• The supplier had actively concealed its ties to Russian counterparties, a finding that created both direct legal liability and significant reputational risk for the client

Outcome

The partnership was terminated before any sanctions implications could materialise. The third-party check gave the client documented grounds for the decision and a clean exit from the relationship.

Background

A ventilation equipment supplier operating across 12 countries (over 10,000 completed B2B projects,96% of products compliant with ISO and EU Ecodesign standards, 18% annual revenuegrowth) requested a vendor due diligence audit on a third-party supplier. The brief was to determine whether the partner maintained undisclosed connections to Russia.

What We Did

The investigation followed the same methodology applied in high-risk supply chain cases: customs invoice review, supply route mapping, and a structured procurement due diligence analysis of the supplier's corporate structure and ownership. Background checks on key individuals within the supplier organisation were conducted alongside the commercial investigation.

Key Findings

The findings mirrored a pattern we've seen before in post-2022 supply chain cases:

• A sanctions evasion scheme was confirmed — goods were being rerouted through Kazakhstan to Russia, with the transshipment     structure deliberately obscured in documentation
• The supplier had concealed direct ties to Russian entities, creating material legal and reputational exposure for any company maintaining the relationship

Outcome

The client terminated the partnership. The third-party due diligence report provided the documented evidence needed to act decisively and avoid potential sanctions consequences.

‍