Report on the Role of Western CNC Machines in the Russian Defense Industry and Consequences for Russia of their Loss

16:12, 02.10.2023

Analysts from the Economic Security Council of Ukraine conducted an extensive analysis of Russia's dependence on foreign CNC machines. Russian military equipment and weapons production largely relies on the import of foreign CNC machines, including the absence of its own precision machine tool manufacturing. In recent years, Russia has been increasing the import of necessary equipment, which must now be completely stopped to weaken Russia as much as possible and prevent a repeat of its full-scale attack on Ukraine.

"The defense industry is perhaps the largest buyer of CNC machines. However, DMG Mori is not the only manufacturer of high-precision machines that still has assets and representations in Russia. The products of foreign manufacturers of CNC machines still find their way into over 50 Russian military-industrial enterprises through parallel or 'gray' imports," says Olena Yurchenko, an advisor to the Economic Security Council of Ukraine.
Before analysts from the Economic Security Council of Ukraine conducted an investigation into DMG Mori's activities and shared the results with Die Zeit reporters. According to the analysis of closed financial data, it was revealed that the Russian subsidiary of DMG Mori had million-dollar sales after the full-scale invasion. Sales of the Russian subsidiary amounted to 18 million dollars in the second half of 2022 and the beginning of 2023.

It was also found that the main clients of the Russian subsidiary were companies affiliated with or even created by employees of the subsidiary itself, and products from the Russian DMG Mori plant were supplied to Russian military-industrial enterprises.

🔗 Read more about the schemes of supplying CNC machines to Russian military factories during the full-scale war at the following link.