A scandal is unfolding in Spain over steel exports: police actions at Sidenor’s office in Basauri could impact the entire system of foreign trade controls. The focus on this case is due to suspicions of legal violations during the export of strategic materials abroad. For Spanish companies, this is a worrying sign—any transactions with foreign military enterprises are now under special scrutiny.
Officers from the National Police and Customs Control Service conducted a search at the Sidenor office on a court order. The investigation concerns possible smuggling and complicity in crimes against humanity. At the center of the probe are steel deliveries to the Israeli company Israel Military Industries (IMI), which specializes in arms manufacturing.
The court proceedings began following a complaint from the Comunitat Palestina de Catalunya-Terra Santa Association. The statement alleges that Sidenor repeatedly shipped steel to Israel, despite lacking authorization from Spanish authorities. According to the complainants, the latest shipment, nearly 400 tons, left on June 10, 2025, via the port of Haifa on the vessel MV VELA.
Suspicions and allegations
As part of the investigation, Sidenor President José Antonio Jainaga and two other top managers came under suspicion. Investigators are checking whether they knew the steel’s final destination and that it could be used for weapons production. Special attention is being paid to the fact that the deals were conducted without official permits and registration, which is mandatory for exporting strategic materials.
Judge Francisco de Jorge, who is leading the investigation, ordered a search as part of a case whose details have not yet been disclosed. The investigation is being conducted under strict secrecy, further fueling interest in the case and raising questions about the potential scale of violations.
Sidenor’s management, in turn, rejects the accusations. The company claims it acted strictly within the law and did not violate either Spanish or European regulations. An official statement emphasizes that at the time of the deal, there were no restrictions on trade with Israel, and the supplied steel was not subject to special export controls.
Defense arguments
In November last year, the president of Sidenor publicly stated that the company had not broken the law. According to him, none of the types of steel shipped to Israel were included in the list of products regulated by the Spanish royal decree or the European regulation on the export control of dual-use goods.
The company also noted that the volume of the disputed deliveries is less than 0.2% of its annual sales. Management insists that all transactions were transparent, and accusations of complicity in crimes against humanity are unfounded.
Nonetheless, investigators continue to examine whether Sidenor could have known about the end use of its products. If the accusations are confirmed, the consequences could be serious not only for the company itself but also for the entire Spanish export-oriented industry.
Context and Consequences
The Sidenor case has become one of the most high-profile investigations in the field of exporting strategic materials from Spain in recent years. It has already sparked a wave of debate among experts and business representatives. Many fear that such incidents will lead to tighter controls and additional inspections for all companies working with foreign military clients.
In recent years, Spain has seen an increase in investigations related to the export of dual-use goods. In 2024, a similar case was launched against a company in Valencia, suspected of supplying drone components to Middle Eastern countries. That investigation resulted in stricter regulations and the introduction of new control procedures.
Experts note that such incidents could impact the reputation of Spanish manufacturers on the international market. At the same time, they highlight the importance of transparency and strict compliance with all legal procedures when signing export contracts, especially when it comes to strategic materials and military technologies.
