German Companies Allegedly Aiding Putin's War Efforts Despite Sanctions

An investigation conducted by broadcaster SWR and reported by the Tagesschau news portal, reveals that German companies continue to sell industrial goods to Russia. These goods include machinery used for manufacturing vehicle and aircraft parts, as well as ammunition.

Russian Industry Shifts to War Economy

Sanctions imposed on Russia have blocked imports, leading to a significant transformation in large sectors of the Russian industry. These sectors are now catering to a war economy, producing military equipment, ammunition, and spare parts as needed. Despite these sanctions, German mechanical engineering companies are allegedly still supplying Russia with machinery. In 2023, over 300 machine deliveries were made to Russia, often through Turkey, according to SWR's research.

German Machinery in Russia

The investigation identified over 30 German manufacturers that exported machines to Russia last year. Many of these manufacturers are based in Baden-Württemberg, a traditional hub for mechanical engineering. In about two-thirds of the cases, the machines were imported to Russia via Turkey. Some Turkish intermediaries involved have direct ties to Russia, while others were founded by Russian entrepreneurs. Evidence obtained by SWR, including videos and photos, demonstrate the extensive use of German machines by Russian military suppliers. These suppliers include Russian companies such as Parsek, Kamaz, NIR, and Industrial Solutions.

Role of CNC Machines in Military Production

The majority of the deliveries involved large industrial machines or CNC machines. These are computer-controlled equipment that enables automated manufacturing. These machines can cut steel, weld parts, and perform other functions necessary for the production of defense equipment, such as vehicle and aircraft parts and ammunition. Olena Yurchenko, from the Economic Security Council of Ukraine, alleges that 80 percent of CNC machines in Russia are now used in military production. She stated, “With computer-aided CNC machines, they can produce much faster and more precisely, which is extremely important, especially in the weapons sector. This ultimately enables them to produce even more deadly weapons. And Germany is the market leader in the production of these machines, with a share of up to 30 percent in Russia.”

Bottom Line

This report raises serious questions about the effectiveness of sanctions and the role of international companies in potentially fueling conflict. If these allegations are true, it seems that despite sanctions, some companies may be finding ways to continue their business with countries that are under international scrutiny. What are your thoughts on this matter? Do you think more should be done to ensure companies are not indirectly contributing to conflicts? Share this article with your friends and let us know your thoughts. Remember, you can sign up for the Daily Briefing, which is available every day at 6pm.