A Russian state-owned explosives manufacturer has obtained Siemens automation equipment through a Chinese intermediary, bypassing Western sanctions.

Source : Reuters

Details : The purchase of Siemens equipment for production automation at the Biysk Oleum Plant (BOZ) in southern Siberia was carried out through the Russian intermediary company Techpribor, which procures industrial equipment from Chinese wholesalers and resellers.

Procurement documents show that in October 2022, BOZ signed a contract with Techpribor for the supply of Siemens equipment. A few days before the end of the 140-day delivery period, Techpribor received a shipment from China via a company called Huizhou Funn Tek, located in Guangdong Province.

Reuters matched Siemens product codes against customs records and scrutinised document details to establish that two power regulator devices delivered by Huizhou Funn Tek correspond to those ordered by BOZ.

Siemens’ press service stated that the company strictly complies with international sanctions and requires the same from its clients, but some products may reach Russia without its knowledge.

A Siemens spokesperson did not confirm whether the company was aware of the equipment being supplied specifically to a Russian explosives plant. Techpribor, BOZ, and its parent company did not respond to a Reuters request for comment.

BOZ’s parent company, the Yakov Sverdlov Federal State Company, is already under US and EU sanctions for assisting Russia’s military efforts.

Production at the Biysk plant has been expanding since the start of Russia’s full-scale invasion of Ukraine in February 2022. Notably, new production lines for RDX explosives, essential for ammunition, are being built there.

Automation of production using Western technology is critically important for increasing productivity, especially amid labour shortages, as noted in a report by the British defence think tank RUSI.

Analyst Konrad Muzyka (Poland) stated that the supply of high-precision components from the West via China prolongs the war, as it supports Russia’s rearmament.

"Without them, Russia's capacity to sustain or scale its war effort would be more time-consuming, expensive and place a bigger burden on the labour market," he said.

Procurement and customs data confirm that between 2022 and 2023, Techpribor imported Siemens equipment from China multiple times, particularly from Huizhou Funn Tek and New Source Automation in Xiamen.

Representatives of these Chinese companies confirmed they buy equipment directly from Siemens, which does not ask about the end user.

European politicians have called this a "major loophole" in sanctions that helps Russia sustain its war effort. In December 2024, the EU imposed sanctions for the first time on Chinese companies supplying the Russian military.

The BOZ plant produces TNT and HMX explosives, which are used for civilian purposes as well, but the majority of its production is directed towards defence needs.

A shortage of explosives is one of the reasons for Russia’s deficit of artillery shells, mines, and aerial bombs, forcing Moscow to turn to allies such as North Korea and Iran for ammunition.

Support Ukrainska Pravda on Patreon !