As Russia sought to ratchet up military production for the war in Ukraine, a state-owned explosives manufacturer circumvented Western sanctions by purchasing equipment made by Germany’s Siemens from a middleman that imports technology from China.
The acquisition of the Siemens equipment needed to automate machinery at the Biysk Oleum Factory (BOZ), in southern Siberia, was made via a Russian intermediary that sources industrial technology from Chinese wholesalers and re-sellers, according to customs data and state procurement records.
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Reuters found no evidence Siemens knew its equipment was sold to the Russian explosives maker.
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It’s well documented that Russian defence manufacturers have sourced Western technology from China, Reuters’ reporting traces the path of equipment to show how a Russian defence firm can obtain Western equipment with minimal difficulty.
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Acquiring automated machine tools is crucial to the Russian defence sector’s drive to produce more munitions. They allow higher productivity with fewer workers, a vital consideration given the sector is experiencing a labour shortage, according to an October 2024 report , opens new tab by British defence think tank RUSI and the Open Source Centre, an organization that uses open data to study conflict, corruption and crime.
Russia has only a limited track record of producing its own automated machine tools and defence manufacturers must often import them.
Konrad Muzyka, director of the Rochan military consultancy in Poland, said the continued delivery of Western-made machinery to Russia was prolonging the war by feeding Moscow’s rearmament drive.
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Sanctions were never about making it impossible for an adversary to buy stuff. Their main purpose is to make it more expensive.
Remember when Russia traded a bunch of Mig fighters to Iran for Shahed drones? Russia got fleeced in that deal!
Reuters found no evidence Siemens knew its equipment was sold to the Russian explosives maker.
Siemens exists since almost 180 years. It is an industrial company since more than a hundred years and historically has been active around the globe long before the “modern globalization” starting around the 80s. Siemens has been active in China since 1872.
I find it hard to believe, that no one involved with that sale had an idea of what is happening. Siemens knows all the tricks in the book and they know a lot of people in a lot of countries.
I would come to the opposite conclusion from that; a Chinese company buying stuff is so unremarkable it raises no alarm.
It’s doubtful Siemens would suspect anything when a Chinese wholesaler buys automated machine tools because they do that literally every single day.