Latvia’s Corruption Prevention and Combating Bureau (KNAB) is conducting a preliminary administrative inquiry into substantial financial gifts received by Jūlija Stepaņenko, leader of the Sovereign Power/Young Latvians Alliance, from her father, who lives in Russia.
KNAB previously announced that it would assess information concerning the financial gifts but did not specify what form the examination would take.
The bureau has now confirmed to news agency LETA that the publicly reported information is being assessed as part of a preliminary administrative inquiry.
Under Latvia’s Criminal Procedure Law, information concerning a possible legal violation may be referred to a competent authority for such an inquiry if investigating the suspected violation does not require the use of criminal procedural powers or investigative methods.
Within the meaning of the law, this type of inquiry involves a state institution and its officials examining a potential legal violation using powers granted under the legislation governing that institution, rather than criminal procedural powers.
As previously reported by LETA,
Stepaņenko’s declarations as a public official show that she received substantial financial gifts totalling nearly 420,000 euros from her father,
who lives in Russia and works in the construction industry.
Stepaņenko’s father, Sergei Fedotov, and his company Forma ZhBI have provided material support to Russian troops fighting in Ukraine over several years, according to an investigation published by independent online media outlet The Insider.
The report stated that the company was already producing anti-tank obstacles and stoves in 2022. Fedotov later reportedly donated vehicles to a foundation involved in supplying Russian military forces.
Latvian Television reported that Fedotov established the Forma group of construction companies in Solnechnogorsk, Russia, more than 30 years ago.
He has also served as a municipal deputy.
This summer, Fedotov was awarded an honorary distinction for his contributions to the Moscow region.
In August 2026, during Russia’s State Duma election campaign, the manufacturing facility managed by Fedotov was visited by Viktor Bout, an arms dealer previously convicted of arms trafficking in the United States.
Bout was running for parliament as a candidate for the Liberal Democratic Party of Russia, which was led for many years by Vladimir Zhirinovsky.
Footage broadcast on Russian television showed Fedotov sitting alongside Bout during a party campaign event held at his company.
Bout was released from US imprisonment in 2022 as part of a prisoner exchange negotiated by the Kremlin.
Meanwhile, Latvian Foreign Minister Baiba Braže (New Unity) recently added Fedotov to Latvia’s list of undesirable persons, imposing an indefinite ban on his entry into the country.
Summary: Latvia’s anti-corruption watchdog is examining nearly 420,000 euros in financial gifts received by politician Jūlija Stepaņenko from her Russia-based father, Sergei Fedotov, whose company has reportedly supported Russian troops in Ukraine and who has been banned from entering Latvia.