russian explosives manufacturer managed to buy Siemens equipment despite sanctions

A russian company that manufactures explosives for shells was able to purchase industrial automation equipment from the German company Siemens in circumvention of sanctions, Reuters reports.

In October 2022, the Biysk Oleum Plant, a division of the Sverdlov Plant in Dzerzhinsk, signed a contract with the Kaliningrad-based company Tekhpribor for the supply of equipment. It imported the equipment from China during 2023, purchasing it from Huizhou Funn Tek and New Source Automation, and transferred it to the end customer.

The Huizhou Funn Tek website lists Siemens as a partner company, and a company representative told reporters that the company is able to purchase equipment directly from Siemens. ‘They don't ask who the end user is,’ she said.

A representative of New Source Automation also said that his company can purchase as much product from Siemens as it needs and that Siemens does not ask about the end recipient.

A Siemens spokesperson responded by saying that the company asks all its customers to comply with Western sanctions. He added that the company would immediately investigate any signs of sanctions violations and involve the relevant authorities.

Source: LIGA.net, Reuters