Turkish Intermediaries Facilitate Supply of European Machine Tools to Russia’s Defense Industry

Investigative journalists have uncovered Turkish intermediaries supplying European high-precision machine tools, including equipment from DMG MORI, to Russia’s defense industry in обход of sanctions.

Ekonomichna Pravda conducted the investigation in partnership with the Polish outlet Frontstory.

According to the findings, traders openly offer ways to disguise the equipment’s military use in official documents. In Russia, the machines are ultimately delivered to shell companies linked to state defense contracts for major military-industrial enterprises.

The investigation was launched after journalists from StateWatch, who were analyzing customs data on shipments of sanctioned equipment from the European Union to Russia, identified exports of machine tools from the Polish plant FAMOT Pleszew, which is part of the German-Japanese corporation DMG MORI.

In particular, the machines fall under HS codes 8458.11 and 8457.10 – horizontal lathes and multi-functional machining centers, which are classified internationally as High Priority Items, meaning high-risk goods that can be used in military production.

According to customs data, during the full-scale war up to November 30, 2024, at least $1.2 million worth of equipment produced by the Polish plant was delivered to Russia.

By analyzing customs records, investigators traced the shipments to the Turkish company Pyramid Muhendislik Ticaret Limited Sirketi, which supplied Famot equipment directly to a Russian shell company linked to the defense-industrial complex – LLC Kortisa.

“Sometimes I work with other Russian companies. I work with one bank. At times, we are allowed to bring in money in rubles. I also sold CNC machines to Russia last year. I bought them in Europe and arranged the export transfer. In the end, we sold them. There are agents, you understand?” a company representative told journalists when they approached him posing as managers of a Russian firm.

He also said he could supply new machines from the Polish Famot plant. According to him, “it would be difficult to pull off, but possible,” and he confirmed that such deals had been done before.

In response to an inquiry from the Polish Frontstory, the Polish plant and its parent company, DMG MORI, said they could not rule out the possibility that third parties had purchased the equipment and illegally exported it.

“As a machine tool manufacturer, we strongly oppose the unauthorized relocation of our equipment. For this purpose, we have developed RMS (Relocation Machine Security) technology: a sensor that detects when a machine is moved and automatically shuts it down. Since January 1, 2024, all DMG MORI machines worldwide have been equipped with the RMS system as standard. We do not have the ability to track or control the location of older machines that are not equipped with RMS,” the company stated.

It is worth noting that in February, journalists identified 160 non-sanctioned companies that procure Western components and equipment for Russia’s defense-industrial complex.

According to the study, Russian defense enterprises rarely import products directly; instead, they rely on a network of private intermediaries. These are mostly small and medium-sized companies that purchase raw materials, machine tools, and spare parts.

Overall, according to customs data, in 2024, around 10,000 Russian companies imported sanctioned goods worth more than $22 billion. More than 2,000 of them were identified as contractors for leading defense-sector enterprises. Direct deliveries from these contractors to military factories are estimated at over RUB 80 billion (about $1 billion).