Barloworld says it has submitted a notification of “voluntary self-disclosure” to the US Department of Commerce’s Bureau of Industry and Security (BIS) on September 5 regarding “potential export control violations that the company is currently investigating, relating to the sales of certain goods to its Russian subsidiary”.
Barloworld says it has engaged the services of independent firms “with the necessary expertise in connection with the internal investigation”.
“Accordingly, the precise details of whether there had been violations and if so, the extent of such violations, have not yet been determined, and remain subject to the abovementioned investigation and voluntary engagements with BIS.”
Barloworld’s Equipment Eurasia business represents its combined UK, Russian and Mongolian Caterpillar operations, with Barloworld the official Caterpillar dealer in these regions.
The JSE-listed group’s Russian operation, Vostochnaya Technica, has been present in Western and Eastern Siberia, Yakutia, as well as the Russian Far East since 1998.
Russia’s invasion of Ukraine in 2022 has led to sanctions against Moscow, which include imports of the American Caterpillar brand and related parts.
Reports of possible Barloworld’s sales in Russia started to emerge in the media earlier this year.
Edited by: Creamer Media Reporter
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