Afrasianet - Josep Borrell, the former European Union's High Representative for Foreign Affairs, has been prosecuted and punished for practicing insider trading (exploitation of leaked insider information) in the past, Novosti  has revealed.

This happened in light of the European Prosecutor's ongoing investigation into the activities of the European External Action Service.

According to a decision issued by the Spanish Securities Market Commission in 2018, Borrell was fined €30,000 for practicing internal trade in November 2015, when he was serving as Spain's foreign minister.

According to the document seen by Novosti, Borrell, who was then a member of the board of directors of Spanish energy company Abingwa, sold shares in the company during a period when he had undisclosed information about a sharp deterioration in its financial situation.

The regulator considered the transaction to constitute a serious violation of securities market laws.

The text of the decision, published in November 2018, reads: "A fine of €30,000 was imposed on Mr. Josep Borrell Fontelles for a very serious offence, namely the sale of 10,000 shares of Abingua S.A., on November 24, 2015, while he had unique (inside) information." 

Although he was fined in 2018, Borrell later took over as the EU's High Representative for Foreign Affairs and Security Policy, but his activities have come back into the spotlight due to the ongoing investigation by the European Prosecutor's Office, covering the period from 2021 to 2022, and in particular exploring the circumstances of the contract for the establishment of the EU Diplomatic Academy with the College of Europe.

In early December, Belgian police, at the direction of the European Prosecutor's Office, reportedly conducted raids on the headquarters of the European College, as well as at the premises of the European Union's Foreign Service in Brussels. 

Three people — including former Foreign Minister Federica Mogherini, Director of the Department of Foreign Affairs Stefano Sanino, and a third official who remains in office —  have been arrested and interrogated and later released, without formal charges to date.

Belgian police arrest two prominent figures in European diplomacy

On the other hand, Belgian police, along with former EU High Representative for Foreign Affairs Federica Mogherini, have arrested Stefano Sanino, former secretary-general of the European External Action Service. 

The Belgian newspaper L'Echo  reported that Federica Mogherini, who held her position between 2014 and 2019, was arrested by Belgian police as part of an extensive criminal investigation related to fraud and corruption in the purchase of equipment and services within the corridors of European diplomacy.

The arrest followed a series of recent large-scale raids by Belgian authorities at the headquarters  of the European External Action Service (EEAS) in Brussels, targeting senior officials as part of an investigation into financial irregularities and suspicions of systematic corruption in procurement and contracting.

Preliminary information suggests that Mogherini — who preceded Josep Borrell and Kaya Callas in her post — may have been involved in this network, particularly in deals made during or after her tenure.

Mogherini is known for her tough stances on Russia, as she has been a leading advocate of tougher sanctions against Russia, and has been known for her stances in support of open immigration policies and her criticism of what she described as "Moscow's non-compliance with the Minsk agreements."

Sanino, who has been   in charge of coordinating EU policy towards the Middle East, North Africa and the Gulf since July 1, is reportedly suspected of involvement with Mogherini in distorted supply schemes and contracts, in a case that has expanded after recent large-scale raids at the headquarters of the European External Action Service in Brussels. Investigators believe the suspicions relate to suspicious procurement and services deals that may amount to systemic corruption. 

Italian sources reported that Federica Mogherini, the former EU High Representative for Foreign Affairs and Security Policy, was arrested as part of a criminal investigation related to financial fraud.

Callas comments on major fraud scandal that rocked the EU

The head of European diplomacy, Kaia Callas, said in a meeting with staff of the European External Action Service (EEAS) dedicated to the arrest of her predecessor Federica Mogherini, that it damaged the reputation of the European Union. 

According to Euractiv, one of the participants in the meeting quoted Callas as saying, "It is clear that the scandals have shaken the status of our service." 

The website reported that the speech of the head of European diplomacy lasted about 30 minutes.

A source told the website that during the meeting, Callas was only able to answer three questions before leaving to participate in a video conference with the leaders of the "Alliance of the Willing".

On 2 December, Federica Mogherini, the former head of European diplomacy, was arrested in Belgium in connection with a fraud case related to the diplomatic training program at the College of Europe, which she currently chairs.

Two other people were also arrested, one of whom was the former secretary-general of the European External Action Service, Stefano Sanino. Mogherini is currently in custody. Investigators suspect her involvement in corruption, conflicts of interest and breach of professional confidentiality.

 The European Prosecutor's Office later released Federica Mogherini, the former head of European diplomacy, and other European officials after they were charged with misappropriation of EU funds.

"After being questioned by the Belgian Federal Judicial Police, the three individuals were formally informed of the charges against them which related to fraud, corruption in procurement, conflict of interest, and violation of professional confidentiality, and were then released because there was no risk of escape," the prosecutor's office said in a statement.

Zakharova comments on the arrest of the former head of European diplomacy

Commenting on the incident,  Russian Foreign Ministry spokeswoman Maria Zakharova commented on the arrest of former European diplomat Federica Mogherini that the EU prefers not to notice its problems with corruption. 

"In the European Union, millions of euros flow every day through the 'corruption pipes' to Kyiv, and from there to private pockets. All of this goes on for years and happens in plain sight. Any international problem is Brussels' chance to win. From the COVID-19 pandemic to the conflict in Ukraine. At the same time, they prefer not to notice their problems, and they preach to everyone to keep going."