South Africa Heavy Machinery Company Discloses Possible Russia Export Breach to BIS
Barloworld, a South Africa-based industrial equipment company, said it may have violated U.S. export controls and has disclosed the issue to the Bureau of Industry and Security.
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The company recently completed an internal investigation on possible export violations and submitted a voluntary self-disclosure to BIS, it said in a Sept. 2 press release. The investigation "has not identified any U.S. sanctions violations," but the firm "has identified apparent violations of export controls which the Company takes seriously and is addressing."
Barloworld, a heavy machinery and industrial equipment supplier, first announced the issue in September 2024, when it submitted an initial notification of voluntary self-disclosure to BIS about certain sales to its Russian subsidiary that it said may have breached U.S. export laws. The company said it hired "independent firms with the necessary expertise" to investigate the issue. BIS granted Barloworld multiple extensions over the past year to continue investigating the possible violations -- including in March, May and June -- before recently submitting a final voluntary disclosure.
The announcement comes amid South Africa-based Newco's planned purchase of Barloworld. "The completion of the Company's investigation, the findings, and submission of the final voluntary self-disclosure report to the BIS marks another significant milestone" in the merger, Barloworld said.