Russia imports Taiwan machinery despite Western sanctions on defence industry

A Taiwanese flag. Photo: Getty Images

The Russian military industry continues to receive modern machinery from Taiwan, despite the imposed sanctions.

Source: a joint investigation by The Insider and the Reporter.

Russia still obtains modern metalworking machinery from Taiwan, which has joined the sanctions against Russia. 

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Despite a direct prohibition on the export of such products, Russia can purchase them through third countries. Mainly, parallel imports occur through Türkiye or China.

From March to September 2023, Russia imported at least 193 machining centres of Taiwanese production, with a total value of nearly US$29 million, the investigation reads. 

Parallel imports generate high profits for both intermediaries and manufacturing companies.

For instance, a machine valued at US$60,000 to US$180,000 sold by intermediaries in third countries was purchased by the Russian manufacturer of cruise missiles and space technology, the Kometa Corporation in Moscow, for US$1 million.

Background:

• Over the past year, Chinese military entities, state research institutes of artificial intelligence, and universities have acquired small batches of Nvidia A100 and H100 semiconductors, which the US prohibits exporting to China. 
• On 20 January, it was reported that businessman Ilya Kahn was arrested in Los Angeles, accused of transferring semiconductors to companies under sanctions that are associated with Russian intelligence agencies and the military.

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