Russia increases imports of machine tools from China: How scheme works

In 2024, the Russian occupiers increased imports of Chinese machine tools for the defense industry. This is due to toughening sanctions, according to the Defense Intelligence of Ukraine.
Thus, the Defense Intelligence of Ukraine has published data on 37 pieces of foreign equipment used by the Russian military-industrial complex, in particular, the Almaz-Antey enterprise, which produces anti-aircraft weapons, and the largest Russian manufacturer of tanks and armored vehicles, Uralvagonzavod.
“Among the published equipment are Chinese machines purchased by Uralvagonzavod in 2023-2024,” the report says.
“In 2024, after the sanctions were tightened, the supply of Western machines became more difficult, so the Russians are increasing imports of equipment from China,” the DIU said.
How scheme for imports from China works
Settlements are mainly made through VTB Bank and its branch in Shanghai, with payments made in Chinese yuan.
Chinese machine tools are equipped with German and Japanese numerical control systems - Siemens, Heidenhain, Fanuc. The main reason is that Russians have experience working with Western systems, and most programs for designing parts are designed for them.
According to available data, Russia is actively training new specialists to work with Siemens, Heidenhain, and Fanuc systems, so switching to others is unlikely.
“Uralvagonzavod and Almaz-Antey also use equipment manufactured by Emco (Austria), Grindex (Serbia), Hermle (Germany), Tos Celakovice (Czechia), etc., that they purchased before Russia's full-scale invasion of Ukraine.
“The publication of such data is important for controlling the restriction of supplies of spare parts, technical fluids, and other consumables, without which these machines will not be able to operate,” the DIU says.
Russia expands capabilities of its shadow fleet
In early February, Ukrainian President Volodymyr Zelenskyy signed a decree on new sanctions. They are aimed at captains of the shadow fleet.
At the same time, Russia is expanding the capabilities of the shadow fleet. In total, it amounts to almost 400 tankers.
As the negotiations on ending the war in Ukraine progress, the issue of easing Western sanctions against Russia, particularly in the energy sector, is on the agenda. And this scenario may turn out to be quite real.