Haas Automation, a leading American producer of CNC (computer numerical control) machine tools, has become the first manufacturer in its industry to be fined by the United States for violating sanctions during Russian war in Ukraine. On January 17, 2025, the Office of Foreign Assets Control (OFAC) and the Bureau of Industry and Security (BIS) announced a combined fine exceeding $2.5 million for illegal shipments of CNC parts to sanctioned entities in China and Russia.
According to investigators, between December 2019 and March 2022, Haas Automation supplied 41 CNC components to service machines operated by entities listed on U.S. sanctions lists. OFAC emphasized that such shipments undermined international efforts to curb Russian aggression and directly bolstered the military capabilities of the aggressor state.
The first allegations against Haas Automation were highlighted in March 2023 by Denys Hutyk, Executive Director of the Economic Security Council of Ukraine (ESCU) and Agiya Zagrebelska, ESCU’s Policy Director on PBS NewsHour. They revealed evidence gathered by ESCU analysts showing that Haas products were being supplied to Russian enterprises via the distributor "Abamet" even after Russia’s full-scale invasion of Ukraine began. that Haas products were being supplied to Russian enterprises via the distributor "Abamet" even after Russia’s full-scale invasion of Ukraine began. These findings were subsequently shared with the U.S. government.
Following the PBS NewsHour report, Haas Automation strongly denied all allegations. In an official statement, the company asserted that all sales to Russia were conducted in full compliance with export controls and sanctions. Haas maintained that it had ceased all direct business with Russia immediately after the February 2022 invasion.
In January 2025, however, Haas Automation admitted to 41 violations of the Export Administration Regulations (EAR). The company cooperated with the investigation and took corrective actions, which led to a reduction in the total penalty amount.
“This case is a significant wake-up call for global corporations. They must rigorously monitor the end users of their products because the cost of collaborating with an aggressor will be steep. It’s also a lesson for governments whose businesses still supply goods to Russia: for sanctions to work, there must be a mechanism of inevitable accountability, as demonstrated by the United States,” said Denys Hutyk, Executive Director of the Economic Security Council of Ukraine.