Despite sanctions Swiss machine tools help Putin's arms industry

Despite sanctions, Swiss machine tools are being sent to Russia and used in the arms industry. The companies comply with the law. But that is obviously not enough.

In fact, no machine tools have been allowed to be delivered from Switzerland to Russia for three years. After all, the high-precision machines can be used in the Russian weapons industry. Nevertheless, more than 100 machines from Swiss manufacturers have found their way to Russia since the start of the Russian war of aggression against Ukraine and the sanctions imposed as a result. This was the result of an investigation by SRF Investigativ.

The reporters analyzed Russian customs data and were thus able to trace the routes through which the circumvention transactions were made. The focus is on the machines of several Swiss companies, including Tornos AG, Schaublin, Fritz Studer and Georg Fischer. SRF Investigativ emphasizes that no evidence was found that the Swiss companies themselves had engaged in circumvention transactions.

Front companies in third countries

However: "The wear and tear of machines and spare parts has increased massively, which is why Russia continues to procure sanctioned goods intensively in Western countries," SRF quotes an assessment by the FIS. The machines are still coming to Russia via detours, third countries and front companies.

For example, twelve "Swiss Nano 4" precision machines from Tornos AG reached a supplier to the Russian arms industry via a stopover at the Istanbul company Enütek Makina, a front company.

The industrial corporation Georg Fischer, headquartered in Schaffhausen, had already had irregularities with its exclusive distribution partner for Russia before the war. Galika AG from Volketswil is now the subject of an investigation by the Office of the Attorney General of Switzerland. It concerns "alleged multiple violations of the Goods Control Act in deliveries before the start of the war".

Companies comply with regulations

When confronted with the investigation, the companies concerned emphasized that they had always complied with laws and export regulations. However, compliance expert Katja Gloor from Transparency International Switzerland points out that the companies have a duty of care: "The responsibility does not end with compliance with formal export regulations, but also includes a careful examination of potential circumvention constructs."

Georg Fischer in particular could and should have known that regulations could potentially be circumvented. The connection between the distribution company Galika and Russian arms companies was even publicly visible.