China helps the military industry of the Russian Federation to obtain Taiwanese components to bypass sanctions

Russia, despite sanctions, continues to receive Taiwanese components of its military industry.

This happens through circumvention schemes with the participation of China and other countries, which allows the Russian military-industrial complex to remain with the necessary materials, including machine tools, semiconductors and microelectronic components, according to the investigation by the Center for Defense Reforms, Guildhall reports.

Oleksandr Danylyuk, head of the Center for Defense Reforms, coordinator of the interdepartmental platform for countering hybrid threats, which operates within the framework of Ukraine-NATO cooperation, said that the Russian military industry has undergone militarization since the beginning of the war in Ukraine, but due to the lack of domestic resources, Russia is forced to look for alternative ways of obtaining the necessary equipment. The main mediators in the process are China, Hong Kong and Turkey. These countries, which have not joined the international sanctions, enable Russian importers to receive products through complex schemes.

The investigation showed that the volume of Taiwanese goods entering Russia through third countries increased from $850 million to $1.75 billion in the period from 2022 to 2023. The main goods that Russia receives include metalworking machines, integrated circuits and printed circuit boards, as well as semiconductor manufacturing equipment.

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These goods mainly go to large Russian defense plants, such as the Kalashnikov Group, plants belonging to the Rostec Corporation, the United Aircraft Corporation (UAC), and the Tactical Missile Weapons Group (TROM). It is these companies that play a key role in the production of weapons used in the current war against Ukraine.

Oleksandr Danyliuk noted that China actively helps Russia to circumvent sanctions by supplying both its products and goods from other countries, including Taiwan. Many Taiwanese manufacturers may not realize that their products are entering Russia for military purposes, as they are sold under the guise of "civilian" needs However, Danyliuk emphasized that in the conditions of the militarization of the Russian economy, the needs of civilian industry do not require such a volume of high-tech goods, which clearly indicates the military use of the supply.

He also pointed to two factors why Russian companies repackage Taiwanese goods as &laquo “Made in Russia”. First, Russian regulations limit the use of foreign defense industry products. Secondly, in this way Russia hides international supply chains, protecting its suppliers from sanctions.

Danilyuk called for stronger controls over exports and tougher sanctions, as existing measures are clearly insufficient. The supply of Taiwanese products through China and Hong Kong not only helps Russia circumvent sanctions, but also poses a potential threat to the security of Taiwan itself.

Danilyuk emphasized that Russia's victory in circumventing sanctions could expand the space for China's actions in relation to Taiwan.

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