“On paper, the operation revolved around Global Trade, a mid-sized trading company based in the German city of Lübeck. Before the war, the company exported goods directly to Russia. But after Western sanctions tightened, court documents show its business model changed. Direct shipments were replaced with a more complex structure designed to conceal Russian end users,” journalists wrote.
According to investigators, the network was headed by a Russian company called Kolovrat, which also operated under the name Siderius.
“The company was sanctioned by the United States for operating in Russia’s manufacturing sector. German investigators describe it as more than just a customer: they allege it was the operational core of a procurement network supplying Russian industry, including entities tied to the defense sector,” Politico reported.
Law enforcement officials said suspect Nikita S. became managing director of Global Trade in March 2022, after Russia launched its full-scale invasion of Ukraine. Investigators described him as a “link” between Global Trade and Kolovrat, where he was also employed at the time.
Kolovrat employees effectively ran the scheme from within, investigators said, logging into Global Trade email accounts and posing as German staff while communicating and negotiating with customers. Goods shipped to Russia included microcontrollers, electronic components, sensors and other technologies that could be used for Russian military development and, in some cases, nuclear technologies.
According to Politico, Western sanctions made direct trade with Russia impossible, prompting companies to reroute shipments through countries such as Turkey, with the involvement of the German company ER Industriebedarf GmbH, officially managed by Russian citizen Yevgeny R.
Germany’s foreign intelligence service obtained internal Kolovrat documents and traced the company’s orders, invoices and correspondence. Nikita S. and other suspects were later detained, while law enforcement officers carried out a series of searches. All suspects face up to 10 years in prison.
“The case exposes the ineffectiveness of Western sanctions, as components can still be purchased in Europe through schemes hidden behind ordinary paperwork and rerouted through third countries before reaching Russian customers,” Politico concluded.
On April 27, Dallas Analytics published an investigation alleging that Russia had built a large-scale logistics scheme to circumvent sanctions by using civilian freight transportation to supply critical components for its military-industrial complex.
According to analysts, the main targets for procurement are microelectronics and aviation components, along with other parts needed for weapons production. The scheme allows Russia to partially offset the impact of sanctions.
On May 15, the British newspaper Financial Times reported that, according to Ukrainian authorities, Kh-101 cruise missiles used by Russia during a large-scale strike on Ukraine on May 14 had been manufactured in 2026 using more than 100 Western-made components.
On May 16, Ukrainian sanctions policy commissioner Vladyslav Vlasiuk said the share of Chinese components in Russian Shahed-type drones was increasing, while the number of Western parts was declining. According to the official, this may indicate that sanctions pressure on suppliers is gradually producing results.