Karen Frøsig, the former director of Sydbank, has been appointed as the new chairman of the paint group Flügger, which is currently under investigation for potentially violating sanctions against Russia. This appointment comes amidst scrutiny regarding Frøsig’s involvement with companies maintaining business operations in Russia.

The announcement of Frøsig’s new role at Flügger coincided with searches conducted by the National Unit for Special Crime (NSK) at Flügger’s office and the private residence of CEO Sune Schnack. Both Schnack and Flügger’s CFO have been charged in connection with the investigation into possible sanctions violations.

Despite the ongoing investigation, Frøsig expressed her enthusiasm for her new position, stating that Flügger has “solid potential with a unique business model.” Schnack also conveyed his pride in attracting a chairman of Frøsig’s caliber.

The investigation stems from reports that Flügger paint is still available for purchase in Russia, despite EU sanctions that have been in place for nearly three years. Flügger claimed in 2022 that it had terminated its agreement with its distributor in Russia following the country’s attack on Ukraine. Schnack stated that the company had been deceived, asserting that Flügger’s policy clearly prohibits any involvement with the Russian market. He added that the company is taking all possible measures to stop the unauthorized resale of paint.

Frøsig has previously defended her involvement with ECCO, another company that has chosen to continue its operations in Russia. She emphasized ECCO’s commitment to its employees, citing the company’s history of supporting its workforce during crises.

Frøsig is expected to be formally elected to Flügger’s board at the company’s upcoming general meeting in August.