Ukraine has imposed sanctions on six individuals and 40 legal entities from Iran, Russia, and China, as outlined in Decree № 638 on the President's website. The sanctions target Russian military-industrial enterprises, manufacturers of Shahed/Geran kamikaze drones, financial centers, and suppliers of critical technologies. These measures follow Tehran's delivery of over 200 Fateh-360 ballistic missiles to Moscow in early September.
Earlier, the United States and the United Kingdom tightened their sanctions against Iran. New restrictions on Tehran are also being discussed in the EU - EU High Representative Josep Borrell has already presented a proposal to member states.
However, despite the growing number of international sanctions and their status as the most heavily sanctioned nations, Russia and Iran continue to expand their weapons production, benefiting from advanced technologies and China's support.
Foreign CNC machines: “The Achilles Heel” of Tehran and Moscow
In October 2023, in a study of Russia's reliance on computer numerical control (CNC) machines, ESCU reported that industrial equipment is a weakness not only for Russia, but also for its situational allies Iran, North Korea, and China.
In early 2024, hackers from the PRANA network hacked the email accounts of Iran's Sahara Thunder, a company controlled by Iran's Ministry of Defense and Armed Forces Logistics (MODAFL). The company was advising Moscow on moving the production of Shahed drones to the Russian Аlabuga special economic zone. In addition to Iranian designs, Tehran provided Russia with a list of foreign equipment necessary for the production of UAVs.
According to the information received, both countries used CNC machines from Germany and Taiwan, as well as equipment from Chinese manufacturers, for the production of drones.
China is a gateway for Russia and Iran to the world of advanced technologies.
Beijing is not only a manufacturer, but also the main channel of access to Western equipment. According to ESCU estimates, China supplies 80% of the CNC machines imported by Russia. The situation in Iran may be similar.
However, 90% of the largest Chinese suppliers of CNC machines to Russia are still not on the sanctions lists. As a result, they manage not only to capture the growing market for equipment for the Russian military-industrial complex, but also to cooperate with leading technology giants from the countries of the sanctions coalition: Siemens (Germany), Mitsubishi (Japan), and Schneider Electric (France).
"In September, thanks to strong sanctions, we saw a mass withdrawal of IT giants from Russia: Google, Microsoft, Oracle, Notion. Similar ultimatums should be used against Chinese manufacturers, and they should be given a choice: either cooperation with Moscow and Tehran, or with the civilized world. Otherwise, China will continue to buy foreign equipment or produce its own using Western technologies, while Russia and Iran will increase the production of lethal weapons," comments Denys Hutyk, Senior Advisor to the Economic Security Council of Ukraine (ESCU)