The EU's top public prosecution office has carried out an investigation into alleged fraud of subsidies for satellite navigation technologies for farm machinery, which it says was linked to the Russian military industry.

The investigation has resulted in two people - a father and son - who are citizens of Belarus - an ally of Russia in its war with Ukraine - having been found guilty of the fraud.

A company controlled by the father and son duo has also been found guilty in the fraud investigation, which found that the parties concerned committed subsidy fraud in a project to develop high-precision satellite navigation devices for the agricultural sector.

The investigation was carried out by the European Public Prosecutor's Office (EPPO), specifically its officials based in Vilnius, the capital city of Lithuania (which has a border with Belarus).

The investigation, code-named 'Precision', uncovered "strong links" between the defendants and the Russian and Belarussian military industries, the EPPO said.

The Belarussian and Russian industries allegedly involved are subject to EU restrictive measures in response to the war in Ukraine.

The investigation was centred on a Lithuanian-based company that obtained EU funding to develop professional satellite navigation receivers capable of using the EU's 'Galileo' satellite navigation system for agricultural applications, including guiding agricultural machinery and supporting precision farming operations.

The total budget allocated to this project was €1,064,933, with €745,453 funded by the European Union Agency for the Space Programme (EUSPA), of which €447,272 was paid out.

In order to obtain the EU funding, the Lithuanian company had to submit a 'declaration of honour' to the EUSPA, stating that it was not subject to any EU restrictive measures and had no links to sanctioned entities.

However, the company, established in Lithuania as owned and managed by the defendants, changed ownership in April 2022, shortly after the Russian invasion of Ukraine.

A different family member with US citizenship and a Lithuanian national were appointed at its helm, in order to circumvent EU restrictions applicable to Belarussian nationals.

The EPPO investigation allegedly uncovered that the two Belarussian citizens - who continued to effectively control the Lithuanian-based company even after the change in ownership - also held leading positions in a Russian-based company that develops and tests satellite navigation chips for military applications and is subject to EU sanctions.

The EPPO also alleged that one of the defendants acquired Russian citizenship between 2020 and 2021 "for personal gain".

That individual held significant shareholdings in other companies with "direct and indirect links" to entities involved in military programmes and cooperating with the military industries of Russia and Belarus, many of which are subject to EU restrictive measures.

In one such company within Russia, this individual held the majority shareholding, at the same time that another substantial stake in that company was held by a former Russian state security "high ranking" officer.

By falsely declaring that the company at the centre of the EPPO investigation had no links to sanctioned entities, the defendants were able to obtain EU funding and gain access to the EU market and geospatial data, the EPPO said.

The two defendants pleaded guilty and compensated the damage to the EU, amounting to €447,272. They were convicted of subsidy fraud committed jointly with others; and of forgery and use of forged documents.

The Vilnius District Court imposed fines totalling €36,000 on the son; however, the final fine to be paid by him was €2,100 due to mitigating factors under Lithuanian law.

The father was fined €34,500, reduced to €22,700 under the mitigating factors.

Finally, the company they controlled was fined €36,000, reduced to €24,000 under the mitigating factors.