In Russia, a state-owned explosives manufacturer circumvented Western sanctions by acquiring equipment from Germany's Siemens, which imports technology from China. The acquisition of Siemens equipment, necessary for automating machines at the Biysk Oleum Plant (BOZ) in southern Siberia, was carried out through a Russian intermediary who purchases industrial technologies from Chinese wholesalers and resellers, UNN reports with reference to Reuters.
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The acquisition of the equipment demonstrates how Russian military firms have been able to easily circumvent Western sanctions to increase their production.
US President Donald Trump has given Moscow until Friday to agree to a ceasefire in Ukraine or face additional sanctions.
BOZ's parent company, the Federal State Enterprise "Y. M. Sverdlov Plant", is already subject to US and EU sanctions for facilitating Russia's war efforts. According to procurement documents, BOZ signed an agreement in October 2022 to acquire Siemens equipment from the Russian intermediary Techpribor.
Shortly before the 140-day equipment delivery deadline, Techpribor received a shipment from a Chinese industrial equipment supplier called Huizhou Funn Tek, based in Guangdong province, according to customs data.
By matching Siemens product codes with customs codes and reviewing descriptions in documents, Reuters determined that two Siemens power regulators supplied by Huizhou Funn Tek were identical to the models ordered by BOZ. However, no evidence was found that Siemens knew its equipment was sold to a Russian explosives manufacturer.
A spokesman for the German engineering multinational company stated that the firm strictly adheres to international sanctions and requires the same from its customers, but added that some goods may enter Russia without its knowledge.
Techpribor did not respond to Reuters' request for comment. Questions sent to BOZ and its parent company also went unanswered.
But it is well documented that Russian defense manufacturers have been sourcing Western technology from China.
Reuters reports trace the path of the equipment. It shows that a Russian defense firm can obtain Western equipment with minimal difficulty.
Since Russia's full-scale invasion of Ukraine in February 2022, the BOZ plant in the southern Siberian city of Biysk has been expanding. A Reuters investigation showed that a new plant is being built to produce another type of explosive called RDX.
The acquisition of automated machine tools is crucial for the Russian defense sector's efforts to produce more ammunition.
They allow for increased productivity with fewer workers, which is a vital factor given that the sector is experiencing a labor shortage, according to a report by the British defense think tank RUSI and the Centre for Open Source, an organization that uses open data to study conflicts, corruption, and crime.
But Russia has only limited experience in producing its own automated machine tools, and defense manufacturers are often forced to import them.
What is known about the Biysk Oleum Plant
According to a marketing video published by the plant, BOZ produces TNT and octogen explosives. While these explosives have civilian applications, BOZ's parent company is a state-owned defense manufacturer, and BOZ fulfills defense orders for the Ministry of Defense, according to the regional administration's website.
The expansion of the BOZ plant was part of a broader effort by the Russian defense sector to increase explosives production.
According to Ukrainian intelligence officials and Western defense analysts, material shortages are one of the bottlenecks hindering Russian production of artillery shells, mortar rounds, and aerial bombs. This forces Russia to purchase ammunition from its allies – North Korea and Iran.
Addition
Russia uses information campaigns to divide the Trump administration, portraying Witkoff as rational and Trump as irrational. The goal is to undermine US efforts to end the war and achieve unilateral concessions.