Banned U.S.-made machinery flows to Russia through third countries

Russian war

29 November 2024, 09:54 AM

Russia is circumventing a U.S. embargo by importing American-made equipment critical to its military industry from Turkey, China, Hong Kong, the United Arab Emirates and the Maldives, The Insider news outlet wrote on Nov. 28, citing customs data.

Waterjet machines are an integral part of military equipment production, as they are used for high-precision cutting of metal, including materials for armor. By using water jets with abrasive powder under high pressure, this method of operation avoids overheating the parts being processed, which is important when working with alloy steels.

The Insider obtained customs data showing that an Omax waterjet machine and spare parts from manufacturers such as Molex, WSI, KMT, AccuStream and H2O Jet were imported into Russia in 2024. The equipment was supplied by Energy Industries LLC, a Russian company with only three employees and modest fixed assets. This suggests that the company is more of a middleman than a manufacturer. 

The machine was reportedly purchased through Yinuo Supply Chain Management Co Ltd, a company registered in Hong Kong but actively present in the Russian market throughout 2023, selling both Chinese and Western equipment, including embargoed equipment.

Another case involves the UAE-based Gartech FZE, which supplies American spare parts to the Russian company R-Garnet, which specializes in abrasives. The Turkish company Zarif Group Dis Ticaret A.S. is alleged to have imported American parts for the Czech water jet machine PTV JETS through its Russian partner JSC Twim. It is part of a group of companies involved in waterjet cutting and the supply of cutting material equipment and spare parts. Its latest known state customer is JSC FTSNII VT SNVO ELERON, a part of the state corporation Rosatom, which is responsible for safety systems in state facilities. 

Chinese company Huizhou Speed Waterjet Technology Co., Ltd. Also reportedly sold components to Center for the Development of Waterjet Technologies LLC in Chelyabinsk, which served Russian scientific and industrial institutions, including Rosatom.

The Insider sent inquiries to Gartech FZE, Zarif Group Dis Ticaret A.S., and PTV but did not receive meaningful responses from any of them.

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