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Austria has dismantled an international network that circumvented EU sanctions to help produce Russian cruise missiles and fighter jets. The Austrian intelligence service uncovered the clandestine operation, the Ministry of the Interior announced on August 10.
State Secretary Jörg Leichtfried called it “unacceptable” that cutting-edge European technology is being used in the production of cruise missiles and air defense systems. “We will continue to act, in full international cooperation, against those who circumvent bans to support the Russian arms industry,” he said. According to the ministry, a shell company was established in Vienna to export sanctioned goods to Russia, including components for cruise missiles and fighter jets. These primarily included computer-controlled cutting machines for mass production and specialized metalworking tools. They were shipped via intermediary countries, including Belarus, Hong Kong, Kyrgyzstan, Lithuania, Poland, South Korea, Turkey, and the United Arab Emirates.
Circumventing sanctions and deceiving European manufacturers
European manufacturers were misled with forged end-user certificates. They believed the goods would remain in third countries, but they were actually sent to companies with ties to the Russian state-owned conglomerate Rostec. Rostec, which is itself subject to international sanctions, claims to be responsible for half of Russia’s military production. The company is behind systems such as the Pantsir, the Kh-101 cruise missile, and the Iskander ballistic missile, all of which have been used many times in deadly attacks on Ukrainian civilians.
Arrest of a Belarusian
A Belarusian man, the director and co-owner of the Austrian shell company, was arrested on May 13. Assets worth 140,000 euros were seized. The company had been purchasing industrial goods for military use since 2019. Since 2022, deliveries to Russian arms manufacturers have totaled 3.3 million euros.
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