Shvabe Factories Evade Sanctions Despite Supplying Russian Weapons — DIU

Ukraine’s Defense Intelligence has identified the structure of Russia’s Shvabe Holding, most of whose factories evade sanctions despite producing components for Iskander missiles and drones.

Data on 48 of the company’s enterprises was published on the War&Sanctions website as part of a systematic effort to expose Russia’s defense industry.

The enterprises that manufacture parts are disguised as medical equipment producers.

According to the intelligence, the holding’s plants are involved in a wide range of military production.

They supply components for strike and reconnaissance UAVs, aircraft and armored vehicle sighting systems, thermal imagers, as well as ballistic missiles and corrected artillery shells.

The structure of Shvabe also includes foreign assets that expand Russia’s access to technology and components.

These include the Chinese company SHVABE OPTO-ELECTRONICS CO., LTD and the Belarusian enterprise Shvabe (Minsk).

“The ‘medical’ cover has likely allowed a significant part of the enterprises to avoid sanctions pressure. Thirty of them are still not under restrictions from any country in the sanctions coalition,” the intelligence agency said.

Among the identified enterprises:

• Moscow plant Sapphire manufactures photodiodes for Iskander-M ballistic missiles and photodetectors for Krasnopol-M2 artillery shells.
• Central Design Bureau Foton manufactures laser rangefinders and thermal imaging sights.
• Germaniy JSC produces germanium for infrared optics used in the nuclear and radio-electronic industries.

Schwabe is the eighth Rostec holding company whose structure has been identified by Ukrainian intelligence. In total, Defense Intelligence has identified 553 enterprises in Russia that support its military capabilities.

Many components from Switzerland, the United States, the Netherlands and other countries were found in the Russian “Prince Oleg the Prophet” drone.

The drone’s developer and manufacturer is Ushkuynik, which is also known for producing “Prince Vandal Novgorodsky” fiber-optic FPV drones  and Osoed interceptor drones.