American Caterpillar equipment continues to be supplied to russia bypassing sanctions

American Caterpillar equipment continues to enter russia through a British dealer, despite the sanctions.

American-made Caterpillar heavy equipment is supplied to russia by an official dealer, the British company Vostochnaya Technika, despite Caterpillar's withdrawal from russia and the American and British sanctions.

It is reported that in the first 3 months of 2024, russia received more than $24 million worth of equipment and spare parts manufactured by the American corporation Caterpillar. 

Among them: industrial engines, spare parts for tracked loaders, bearings for road construction equipment, electric generators for Caterpillar equipment, pumps and their parts, gears, and much more.

Vostochnaya Technika LLC became the leading importer. More than 60% of the goods (by value) were made in the United States.

It is noted that the importer of Caterpillar products, Vostochnaya Technika LLC, is a 100% subsidiary of the British VOSTOCHNAYA TECHNICA UK LIMITED, which is headed by three South African citizens and one Australian citizen. 

In 2023, Vostochnaya Technika LLC's sales revenue amounted to more than RUB 20 billion (UAH 9.26 billion), and net profit was about RUB 5 billion (UAH 2.31 billion).

The revenue of the parent company VOSTOCHNAYA TECHNICA UK LIMITED in 2023 amounted to more than $23 million. 

Its financial report states that the company has dealer agreements with Caterpillar and Trimble. According to the same report, the parent company sold $20 million worth of goods to the subsidiary in 2023, and $130 million in 2022.

Caterpillar cannot help but know that its dealer is selling its equipment in Siberia, as Barloworld has openly announced the continuation of business (while calling the war a “russian-Ukrainian crisis”), and the financial report of the British subsidiary through which it does business in russia is also publicly known.

Source: The Insider