One of the largest manufacturers of high-precision machine tools, the Japanese-German company DMG Mori, was included in the NACP list of international sponsors of the war.
Prior to the full-scale invasion, DMG Mori was one of the largest suppliers of high-precision equipment to Russia and held 20-30% of the Russian CNC market. Since 2015, the company has localized production and opened a machine tool plant in Ulyanovsk.
ℹ️ Computer numerical control (CNC) machines are automated robotic machines that can perform operations without human intervention. High precision, versatility and compatibility with a wide range of materials make CNC machines critical for the production of military equipment and weapons. The share of Russian-made machines in their market was only 30% in 2021, but even for such production, Russia is forced to import from 80 to 90% of components.
Despite public statements by the company's management about leaving the Russian market at the end of February 2022, DMG Mori's Russian subsidiaries remain active. In the summer of 2022, DMG Mori Rus LLC supplied machine tool components to a subsidiary of UDK-Saturn PJSC, Saturn Instrument Plant JSC, which produces gas turbine engines for military aviation (data from the decision of the Moscow Arbitration Court of 03.07.2023 No. A40-51758/23-62-407).
📣 DMG Mori and other global manufacturers of CNC machines must be held accountable for violating the sanctions regime. In addition to completely withdrawing from the markets of the aggressor states and blocking all activities of subsidiaries and distributors in such markets, manufacturers must update their own compliance systems. In particular, they should install kill-switches for all customers that will block the operation of equipment if necessary; and identify intermediary companies to avoid parallel and "gray" imports, etc.
The analytical team of the Economic Security Council of Ukraine has been studying the machine tool industry and its importance for the Russian military-industrial complex since the beginning of the full-scale invasion and communicates the results of its work with the competent authorities.