CNC machines manufactured by South Korea’s DN Solutions — worth over $19 million — have been identified at Russian industrial facilities involved in the production of Lancet loitering munitions and Iskander missile launchers, according to The Korea Times, citing research by the Economic Security Council of Ukraine (ESCU).
Despite existing international sanctions, the equipment reached Russia via Chinese distributors, including Silver Technology, which presents itself as an official partner of DN Solutions.
“There are factual indicators that deserve closer scrutiny in this specific case — particularly the confirmed presence of DN Solutions machinery at Russian industrial sites after Feb. 24, 2022. Available customs and procurement records indicate that these were deliveries of new equipment under contracts in 2023 and 2024,” said Vladyslav Vlasiuk, Sanctions Advisor to the President of Ukraine.
He added that while such shipments do not constitute direct evidence of wrongdoing, they may point to gaps in export control and merit both internal review and external regulatory investigation.
DN Solutions denied that it exported any products to Russia after the outbreak of the full-scale invasion, emphasizing that the company complies with South Korean laws prohibiting the unauthorized export of strategic goods.
“Since the Russia-Ukraine war broke out, we have not exported our products to Russia,” a DN Solutions spokesperson said. “It is practically impossible to track transactions involving used equipment that had been sold to other countries before the war.”
However, ESCU argues that DN Solutions should have been aware of the re-exports, given access to open-source and commercial trade databases. The Council’s investigation includes documented cases of continued deliveries, including declarations of conformity for DN Solutions products issued to Russian importers between May 2024 and February 2025.
“Whether DN Solutions had direct contracts with Russian buyers is no longer the central question — the issue is whether it exercised sufficient control over the distribution of its products,” said Agiya Zagrebelska, ESCU’s Policy Director.
She urged South Korean regulators to review DN Solutions’ relationships with intermediaries such as Silver Technology and, if necessary, strengthen export control mechanisms to prevent further diversion.
In response to ESCU’s findings, DN Solutions stated that it had already ended its business relationships with Chinese companies as soon as it became aware of their re-exports to Russia.
“We have informed dealers and agencies that selling our equipment to Russia and circumvention of export controls are strictly prohibited,” the company spokesperson said. “We have also notified them that any violation of this policy is not just a breach of contract but also subject to strict sanctions by authorities.”