- Austria has broken up a sanctions-evasion scheme that supplied equipment used to make engines for Russian missiles and fighter jets, in breach of European Union sanctions, the interior ministry said on Monday.
- The scheme involved a Vienna-based company that concealed its shipments through a network of shell companies in various countries, including Turkey and the UAE.
- In May, authorities arrested the 28-year-old Belarusian head of the unnamed company, and on the same day, seized CNC machines and specialized tools worth about €140,000 ($162,000).
- Evidence from four raids in August last year indicated that industrial goods worth over €3.3 million had been delivered to Russian arms manufacturers since 2022.
- The Hennlich Group's Russian subsidiary completed 583 shipments valued at $2.9 million between 2022 and 2024.
- EU sanctions on dual-use goods took effect in 2022 after Russia's full-scale invasion of Ukraine.
- The sanctions were designed to choke off the flow of components that could serve both civilian and military purposes, including semiconductors and precision machining equipment.
- Austria has faced criticism for its lagging enforcement efforts compared to other European countries like Germany and the Netherlands.
- The equipment supplied included special metalworking tools and CNC machines, which can be used to make parts and tools for military applications.
Austrian authorities have taken significant action against a Vienna-based company that was part of a complex network supplying critical machinery to the Russian arms industry, violating EU sanctions. The company, which has not been named, was found to have falsified end-user certificates to facilitate these shipments.2
The operation involved a range of countries, including Turkey, the UAE, and Hong Kong, to conceal the true destination of the equipment. Investigators revealed that the goods were used to manufacture military equipment, including engines for cruise missiles and fighter jets.
The Austrian interior ministry reported that the company’s head, a 28-year-old Belarusian, was arrested in May. On the same day, authorities seized CNC machines and specialized tools valued at approximately €140,000 ($162,000).
Evidence from four raids last August indicated that industrial goods worth over €3.3 million had been delivered to Russian arms manufacturers since 2022.
Austria's junior minister in charge of intelligence, Joerg Leichtfried, emphasized the seriousness of the situation, stating, “It is unacceptable for high-precision European technology to be diverted towards the production of cruise missiles and air-defence systems.” He assured that the government would continue to take decisive action against those attempting to circumvent legal bans on supporting the Russian arms industry.
“The scheme involved a Vienna-based company that falsified end-user certificates and routed equipment through shell companies in Turkey, UAE, Hong Kong, Belarus, Kyrgyzstan, South Korea, Poland, and Lithuania. Authorities arrested the 28-year-old Belarusian head in May and seized CNC machines worth about €140,000.”
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