A 55-year-old man from the east of the Netherlands has been arrested on suspicion of supplying microchips to Russia, in defiance of EU sanctions.

The chips could be used in the arms industry and cannot be sold to Russian companies, the tax office investigation agency FIOD said. The Russian arms industry is currently struggling with a serious shortage of these chips.

The investigation was sparked following a report by an un-named bank to the financial intelligence unit FIU. The suspect may have pretended the chips had a different destination rather than Russia in order to circumvent the sanctions, FIOD said in a short statement.

Investigators have also sequestered the man’s company and personal bank accounts, book-keeping and stock. The arrest took place last month and the man has since been remanded in custody while the investigation continues.

European policing agency Europol was also involved in the investigation.