FLSmidth, the Danish supplier of mining equipment and cement process technology, announced on Friday that it is investigating whether it may have violated sanctions after uncovering that certain pre-contract tender materials had been provided to parties in Russia.
According to the company, the materials were given to persons in Russia in relation to a limited set of potential projects based in Kazakhstan. The discovery was made as part of an internal probe that remains under way.
Following the finding, FLSmidth said it has suspended efforts to pursue the tenders linked to those potential projects. The company declined to specify further details about the items provided or the identities of the recipients while the review continues.
When asked which specific sanctions might be implicated, FLSmidth responded in an emailed statement that it has notified both U.S. and Danish authorities. In that statement the company added: "As the investigation is still ongoing, the information we can share at this time is contained in the press release."
The announcement notes the broader regulatory context in which the probe is taking place: the United States and the European Union imposed extensive sanctions on Russia following its full-scale invasion of Ukraine in 2022.
FLSmidth's disclosure centers on pre-contract tender materials - documents or data provided in an early stage of potential commercial engagement ahead of any formal agreement - and the company's actions since identifying the issue. The firm has not provided additional details about the number of tenders affected beyond describing them as a limited number, nor has it described the nature of the materials beyond the term "pre-contract tender materials."
With the internal investigation ongoing and notifications made to relevant authorities, FLSmidth has maintained that further information will be released as allowed by the probe. The case remains open while the company and regulators assess whether any sanctions compliance failures occurred.
Summary: FLSmidth found it had provided pre-contract tender materials to individuals in Russia related to a small number of possible Kazakhstan projects, has halted pursuit of those tenders and informed U.S. and Danish authorities as it continues an internal investigation. The company said limited information is available while the probe proceeds.