The Russian state-owned explosives producer has circumvented Western sanctions by acquiring equipment from Germany's Siemens AG through an intermediary importing technology from China. The deal is part of the Kremlin's efforts to increase military production amid the war in Ukraine, Reuters reported, BTA reports.
The Siemens equipment needed to automate production machines at the federal state enterprise “Biysky Oleumen Zavod“ (BOZ) was delivered through the Russian intermediary “Tekhpribor“, which buys from Chinese wholesalers. This is shown by customs data and government procurement documents reviewed by Reuters.
The investigation reveals how Russian military-industrial enterprises successfully circumvent sanctions to modernize their production and provide high-tech components for weapons and ammunition.
Trump with an ultimatum to Moscow
US President Donald Trump has given Moscow a deadline of tomorrow to end the war in Ukraine, threatening new sanctions and increased tariffs if the conflict continues.
A complex chain of intermediaries
In October 2022, BOZ signed a contract for the supply of equipment with “Techpribor“. Shortly before the deadline, the company received a shipment from Chinese manufacturer Huizhou Funn Tek, based in Guangdong province.
By matching Siemens product codes with customs records, Reuters found that two power control modules sent by the Chinese company matched models ordered by BOZ.
Siemens said it strictly complies with international sanctions and requires its partners to do the same, but acknowledged that some goods may reach Russia without its knowledge. BOZ and “Techpribor“ did not respond to requests for comment.
Production expansion in Siberia
Since the start of the full-scale invasion of Ukraine, the BOZ plant in the city of Biysk (Southern Siberia) has significantly expanded its operations. A new facility is being built to produce the highly explosive RDX (hexogen), according to a Reuters investigation.
Automated machines are key as they enable higher productivity with fewer workers, an important factor given the shortage of personnel in the sector, according to a report by Britain's Royal United Services Institute (RUSI) and the Open Source Centre.
Polish analyst: "Technology prolongs war"
Polish military expert Konrad Muzyka warns that Western technology reaching Russia is actually prolonging the conflict by speeding up the production of weapons, drones and modernized tanks.
"Without these high-precision components, Russian production would be slower, more expensive and harder to maintain," he stresses.