Rockwool investigated by Danish authorities over potential EU sanction breaches
COPENHAGEN (Reuters) - Rockwool is under investigation over a potential breach of European Union sanctions, Danish authorities said on Tuesday, following a media report that alleged the insulation maker's products were used in Russian military equipment.
A report by investigative media outlet Danwatch last week outlined several examples of Rockwool's products being used in military projects commissioned by the Russian defence ministry between 2015 and 2020, including in the making of Russian warships.
"The Danish Business Authority can confirm that the agency will investigate the concrete circumstances," the agency said in a statement to Reuters on Tuesday, referring to the report by Danwatch.
A Rockwool spokesman said the company had not been contacted by the agency regarding the matter.
"We fully respect all sanctions applicable at any given time," the spokesman said.
The company's products are widely available on the Russian market through distributors, making it "impossible for us to know or have any control over who all the end-users might be", he said.
Shares in Rockwool fell more than 12% on Tuesday and were trading 7.4% lower by 0951 GMT.
Following Russia's invasion of Ukraine a year ago, the company said it would keep doing business in Russia, where it has four factories and employs 1,200 people.
The European Union has imposed several sanction packages against Russia since its illegal annexation of Crimea in 2014, including bans on exporting defence equipment to Russia and on goods which can be used for both civilian and military purposes.
If the Business Authority finds indications of wrongdoing, it can report Rockwool to the police.
(Reporting by Nikolaj Skydsgaard; editing by Jacob Gronholt-Pedersen and Jason Neely)