Russian explosives plant tied to military expansion secures Siemens gear via Chinese intermediaries, bypassing Western sanctions
Despite Western sanctions, a Russian explosives plant has purchased Siemens equipment through a network of intermediaries.
This is reported by Reuters.
The state-owned explosives manufacturer, the Biysk Oleum Plant in southern Siberia, purchased the equipment through a Russian intermediary. The intermediary, which in turn buys industrial technology from Chinese dealers, purchased Siemens equipment.
According to the publication, this case of equipment purchase shows how Russian military companies can easily circumvent Western sanctions to increase their production.
According to the publication, in October 2022, the Biysk Oleum Plant signed an agreement to purchase Siemens equipment from the Russian intermediary Tekhpribor. “Shortly before the expiration of the contract, Tekhpribor received a shipment from Huizhou Funn Tek, a Chinese supplier of industrial equipment.
By comparing Siemens product codes with customs codes and reviewing descriptions in the documents, Reuters found that the two Siemens power control devices supplied by Huizhou Funn Tek were identical to the models ordered by the Biysk Oleum Plant.
Later, in 2023, Tekhpribor imported several more batches of Siemens equipment from another Chinese supplier, New Source Automation Technology. The equipment in these batches belonged to the same product category.
A Siemens spokesperson told the publication that the company strictly adhered to international sanctions and requires the same from its customers. But he added that some goods could get to Russia without its knowledge.
The acquisition of automated machines is crucial to the Russian defense sector’s drive to produce more ammunition. They allow for higher productivity with fewer workers. This is an important factor given that the sector is experiencing a significant labor shortage. Russia has only limited experience in producing its own automated machines, so defense manufacturers are often forced to import them.
The Biysk Oleum Plant produces explosives, including TNT and hexogen. The lack of explosives is one of the factors that hinders the production of artillery shells, mortar shells, and aircraft bombs in Russia, forcing it to buy ammunition from its allies, North Korea and Iran, instead.
In May 2025, it was reported that Russia had been conducting a large-scale expansion of the Biysk Oleum Plant, where hexogen production was to be established. According to the project agreement posted on the state procurement website in 2023, the new facility is to produce 6,000 tons of explosives annually, and the construction was scheduled to be completed by the end of 2025.
This production capacity will allow filling an additional 1.28 million OF-29 artillery shells, which are a typical 152 mm artillery ammunition.
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