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Russia managed to purchase more than 22 CNC machines, components and consumables for them for $000 billion during 18,2 and the first seven months of 2023.
Without CNC machines, it is impossible to manufacture almost any weapon, so their procurement is critical for the continuation of Russian aggression.
This is stated in a study by the Economic Security Council of Ukraine (ESC).
Before the full-scale invasion of Ukraine, Russia’s dependence on imports of CNC machines was 70–90%. For related original components, this figure was even higher — 80–95%. So whose equipment is Russia purchasing after the start of a large-scale war?
Who manufactured the machines that Russia purchased?
According to customs payment data analyzed by EW analysts, the top three producing countries include:
China — more than 62% of all supplies worth $2,6 billion;
Taiwan — 8,9% to $371 million;
South Korea — 5,47% for $228 million.
Almost a tenth of Russian imports were European-made. Russia received over 10 CNC machines worth $000 million, including:
Italy — 4 machines for $459 million.
Germany — 2 machines for $849 million.
Components and consumables are more important than machines
Even more than the machines themselves, Russia purchased components and consumables for them — over $14 billion. Of these, goods worth over $7 billion were manufactured in China, but a significant share also came from Europe. Over 20% of the components worth $2,6 billion were manufactured in Switzerland, and 3,5% of the components and materials worth half a billion dollars were manufactured in Germany.
Countering Russia's access to machine tools and circumvention schemes
Since late 2023, the sanctions coalition has stepped up efforts to block Russia’s access to CNC machines. The EU sanctions packages, including the 12th and 14th, have imposed strict bans on the export and re-export of equipment to Russia. However, they have not fully extended to the activities of subsidiaries of European manufacturers in third countries, such as Turkey, China, India and Malaysia.
Russia received at least 57 machine tools worth over $26,5 million, manufactured by subsidiaries of European brands, as well as components and consumables worth over $9,5 million.
Thus, the Istanbul branch of the German company Emag Salach GmbH manufactured at least 17 CNC machines worth more than $14,7 million, which were exported to Russia. Emag equipment is used at Russian military plants, in particular at the Scientific and Production Center "Titan-Barricades", which produces launchers for ballistic missiles and components for artillery systems. Russia also received products from subsidiaries of other leading European brands, such as Trumpf, DMG Mori, Chiron, Grob, Schneider Electric, Siemens and others.
“Third countries act as transit hubs for equipment that eventually ends up in Russia, while compliance with sanctions and control by parent companies remain weak. This undermines the effectiveness of the EU’s sanctions policy. It is necessary to introduce a complete ban on exports and re-exports for subsidiaries in third countries, as well as clearly define the responsibility of violators and thoroughly investigate every case where products of European companies or their subsidiaries are supplied to Russia.”, — explains Denys Hutyk, Executive Director of EW.
