Austria breaks up sanctions-evasion scheme supplying Russian arms industry

August 10, 2026 at 09:04 PM2 min

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Austria has broken up a sanctions-evasion scheme in which a Vienna-based company supplied equipment used to make engines for Russian missiles and fighter jets, the interior ministry said on Monday. The company falsified end-user certificates and used a network of shell companies in Turkey, the UAE, Hong Kong, and five other countries to conceal shipments. The 28-year-old Belarusian head of the company was arrested in May, and authorities seized CNC machines and tools worth about €140,000.

The Smuggling Network

The Vienna-based company falsified end-user certificates to supply items including metalworking tools and CNC machines, the ministry said. Shipments were concealed through shell companies in Turkey, the United Arab Emirates, Hong Kong, Belarus, Kyrgyzstan, South Korea, Poland and Lithuania. The goods were destined for firms linked to Rostec, the Russian state industrial conglomerate, and used to produce engines for cruise missiles and fighter jets. Investigators found that industrial goods worth more than €3.3 million had been delivered to Russian arms manufacturers since 2022.

Arrest and Seizure

The 28-year-old Belarusian head of the company was arrested in May, the same day authorities seized CNC machines and specialized tools worth about €140,000. The suspect remains in custody as investigations continue. Evidence was gathered during four raids carried out in August last year, which uncovered the scale of deliveries.

Official Response

Austria’s junior intelligence minister, Joerg Leichtfried, called the diversion of European technology to Russian weapons production 'unacceptable.' 'We will continue to take decisive action against those who attempt to circumvent legal bans on supporting the Russian arms industry,' Leichtfried said. The Russian embassy in Vienna declined to comment, and Rostec did not immediately respond to a request for comment.