Austria Cracks Down on Sanctions-Evasion Scheme Supplying Russia's Arms Industry
Austria has dismantled a complex sanctions-evasion scheme that supplied Russia's arms industry with critical machinery, despite EU restrictions imposed in 2022.
The operation involved radial forging machines, specialized equipment used to shape metal components for artillery barrels and other weapons. GFM, an Austrian manufacturer, is one of the world's leading producers of these machines, which remain in active use at Russian facilities.
A documented transaction showed a used 1983 CNC forging machine being sold for $1.3 million and shipped from Spain to a Russian firm called AZK Group LLC through a network of intermediary companies in countries like Spain and Hong Kong.
The Hennlich Group, another Austrian company, operated through its Russian subsidiary to ship restricted industrial components directly to military manufacturers between 2022 and 2024. The subsidiary completed 583 separate shipments valued at $2.9 million.