Despite Western sanctions, Russian bomb factory bought Siemens tech via middleman
RUSSIA, AUG 8 – A Russian state-owned explosives factory used Chinese intermediaries to acquire Siemens equipment in October 2022, aiding military production amid sanctions, a UK think tank reported.
- In October 2022, the Biysk Oleum Factory, a sanctioned Russian explosives plant in southern Siberia, signed a contract with Tekhpribor to acquire Siemens equipment through a Chinese middleman.
- This transaction arose as Russia’s defense industry, constrained by sanctions and lacking domestic precision automation, sought ways to sustain and expand munitions production via indirect imports.
- Tekhpribor used New Source Automation, a Chinese company that imports Siemens products without disclosing end users, to route industrial technology to BOZ, which supplies the Russian Defense Ministry and is controlled by the sanctioned Sverdlov Plant.
- Ryan Wu, a manager at New Source, indicated that his company can supply Siemens equipment in unlimited amounts while keeping the identity of the ultimate buyers confidential, whereas Siemens emphasized its strict compliance with sanctions and pledged to promptly investigate any suspected breaches.
- This supply chain enables the Russian military to maintain critical automated manufacturing processes, which experts say prolong the war by supporting Moscow’s rearmament despite Western export controls.
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Despite sanctions, Russian bomb factory bought Siemens tech via middleman
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.
Russian explosives manufacturer, bypassing sanctions, bought equipment from the German company Siemens. The purchase of this equipment necessary for automating machines at the Biysk Oleum Plant (BOZ) in southern Siberia (Russia) was made through a Russian intermediary who...
As Russia sought to increase military production due to the war in Ukraine, a state-owned explosives manufacturer found a way to circumvent Western sanctions by purchasing equipment made by Germany's Siemens through a middleman who imports technology products to China.
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