Taiwan halts machinery exports to Russia
Taiwan's Ministry of Economic Affairs announced a complete halt of exports of machinery that could potentially serve military enterprises in Russia. This action comes as a response to recent media investigations which spotlighted such deliveries.
As part of these tightened export controls, penalties for initial violations of sanctions against Russia and Belarus have been significantly increased, ramping up to 1 million Taiwanese dollars (approximately USD 31,100). Additionally, the ministry has launched an "active campaign" urging manufacturers to adhere to laws and carefully monitor the end-user of their products.
The new regulations have already shown effectiveness as the volume of exported machinery from Taiwan to Russia has reportedly "dropped to zero," according to government data.
Earlier this year, in January, the Russian outlet The Insider and Taiwan's The Reporter jointly published an investigation revealing Taiwan's critical role in supplying machine tools to Russia's defense industry, despite the island's pro-Ukraine governmental stance. The report suggested that these exports were routed through third-party countries such as Turkey. Following this exposé, Taipei imposed sanctions on several Russian companies mentioned in the report by February.
In a more recent investigation from July, The Insider reported plans by Taiwanese company Giant Force to circumnavigate restrictions to deliver a crucial piece of equipment for testing rocket heat-resistant coatings — the "salt spray chamber" — to Russia. This alleged scheme involved a network of a Chinese plant owned by the Taiwanese firm, a Malaysian transport service, and a Kyrgyz bank. The delivery was eventually thwarted, crediting vigilant banking sectors, including in China, wary of potential dual-use goods sanctions, reports The Insider.
Reports on Taiwanese machine exports to Russia were further substantiated in analyses by the UK’s Royal United Services Institute and the US government’s Open Source Center, which gathered intelligence from public sources for US agencies.
In a separate investigation by German broadcaster SWR, an elaborate evasion of sanctions revealed over 300 automated machines from German manufacturers reaching Russia in 2023. Customs documentation, alongside photographic and video evidence, demonstrated these CNC machines are utilized extensively by enterprises like "KamAZ," exhausted the invaluable role these play in supporting the Russian military’s fleet engines and aircraft components.
The investigation uncovered over 30 German manufacturers, including Heller, have machinery exploited within the Russian defense framework. SWR disclosed that two-thirds of this German-origin equipment is transported via intermediaries located in Turkey.
Responding to inquiries, German companies assured SWR that they comply with sanctions against Moscow and disclaimed knowledge of how their machines ended up in Russia.