Taiwan emerges as a main supplier of machine tools to Russia despite sanctions
Despite its pro-Ukraine stance, Taiwan has become a key supplier of machine tools to Russia following the start of a full-scale invasion, according to investigations by Taiwan's The Reporter and Russia's The Insider.
In January 2023, Taiwan's Ministry of Economy added high-tech machine tools to the list of sanctioned goods. The direct export of complex metal processing machinery and high-grade lathes to Russia has been reduced almost to zero. The legal export of electrical discharge machines is still possible.
Currently, nearly 80% of the complex machine tools produced in Taiwan and shipped to Russia are rerouted through third countries, with Turkey and China emerging as the main conduits. Russian customs data indicates that between March and September 2023, Russia imported at least 193 Taiwanese manufacturing systems, valued at almost $29 million.
As of September 2023, almost half of the machinery imported by Russia from Turkey was manufactured in Taiwan.
This scheme significantly profits manufacturers and intermediaries. For instance, machines usually priced between $60,000 and $180,000 have been sold to "Korolev Rocket and Space Corporation Kometa" in Moscow for one million dollars.
Journalists note that these machines are essential for Russia's production of detonators, high-precision weaponry, and other military hardware.