Flügger is being investigated by police after sales in Russia

Director of Flügger, Sune Schnack, believes that the company has been ‘led by lust’.

The Danish paint products group Flügger is being investigated by the police after sales in Russia were revealed.

The company itself wrote this in a stock exchange announcement on Thursday.

The announcement comes after DR revealed that Flügger’s products are actively marketed in several Russian cities, including at a series of trade fairs, and that Flügger’s paint can be purchased online and physically in stores throughout Russia.

Flügger states that this winter the company has stopped cooperation with distributors in Kazakhstan, Estonia, Azerbaijan and Kyrgyzstan.

“This was the result of an investigation conducted in collaboration with external experts, following suspicions that one or more distributors, in violation of both cooperation agreements and guidelines, marketed and resold Flügger products to the Russian market,” it says.

Director of Flügger, Sune Schnack, believes that the company has been ‘led by lust’, according to the stock exchange announcement.

“It is completely unacceptable, and we are appalled that a former long-standing partner has chosen to deceive us in this way,” says the director.

Sune Schnack explains that the company acted ‘quickly and effectively’ when it became aware of the matter.

“We have also significantly tightened our control mechanisms and internal procedures,” he says.

Flügger is cooperating with the police, who are investigating the circumstances of the case, including Flügger and the management, the company also writes.

DR has uncovered that Russian businessman Aleksej Popov continues to present himself as Flügger’s representative in the country, even though the agreement with him was terminated in April 2022, Flügger told DR.

Flügger suspects that the resale to Russia took place via one or more distributors.

“The exports to the four countries together constitute the same volume as one large store in Denmark,” writes the paint products group.

Flügger is also pursuing a ‘legal path’ to shut down ‘such activities on the Russian market’, it says.

ritzau