Austria dismantled a sanctions evasion scheme

According to Reuters, the company falsified end-user certificates to supply the equipment under sanctions. Exported products included special metalworking tools and CNC machines, which can be used to make parts and tools. Shipments were concealed through a network of shell companies in Türkiye, the UAE, Hong Kong, Belarus, Kyrgyzstan, South Korea, Poland and Lithuania, said the Austrian ministry. Finally, the equipment was supplied to companies affiliated with Russian state industrial conglomerate Rostec. Transported goods were used to make military equipment, including engines for cruise missiles and fighter jets.

“It is unacceptable for high-precision European technology to be diverted towards the production of cruise missiles and air-defence systems,” Austrian Secretary of State Joerg Leichtfried said. “We will continue to take decisive action (…) against those actors who attempt to circumvent legal bans on supporting the Russian arms industry.”

The Russian embassy in Vienna and the Rostec conglomerate did not comment on the matter.

The head of the parent company, a 28-year-old Belarusian, was arrested in May. On the day of his arrest, authorities seized CNC machines and specialised tools worth about €140,00, the ministry reports. Since 2022, industrial goods worth over €3.3 million had been delivered to Russian arms manufacturers. This case shows the difficulties European member states must face in order to properly execute imposed sanctions. Russia had plenty of time to adapt and develop mechanisms allowing it to circumvent Brussels decisions. Now it’s Europe’s turn to respond.