Despite sanctions, Russia continues to acquire equipment suitable for military production. Following reports of imports of Austrian machinery used to forge howitzer barrels, new data show a sharp surge in shipments of Japanese-made Tsugami metalworking machines. China has become the main transit route, with total imports over the past three years rising nearly twenty-fivefold.
Shipments of metalworking machines and components from Japan’s Tsugami Corporation to Russia have risen nearly twenty-fivefold over three years—from $2.5 million in 2021 to $62 million in 2024. The vast majority of the equipment is new: in 2024, only four of 206 consignments of Tsugami machines and parts were marked as “used.” Documentation indicates that China is the primary transit route.
Imports of Tsugami Machines to Russia, $ million
Tsugami manufactures advanced, high-precision computer numerical control (CNC) machines that in many respects outperform most Chinese counterparts. They are in demand across industry, including at enterprises such as JSC Radiopribor, which produces onboard navigation systems. Reports of Tsugami machine deliveries to Russia date back to 2023, when then–Ukrainian Prosecutor General’s adviser Oleksandr Lemenov first flagged the issue. Since then, the situation has only worsened, the outlet notes.
In 2024, the main supplier of Tsugami machines from China to Russia was Ele Technology. Shipments continued at least until October, when the firm was placed under U.S. sanctions. Much smaller volumes were handled by Shenzhen Yile Equipment, which does not even have its own website. Third place went to Hangzhou-based Lewin Limited, followed by Hong Kong–registered Grun Grup Limited. All other intermediaries together account for only fractions of a percent of the market.
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The leading buyer of Japanese Tsugami machines in Russia in 2024 was the large firm AMG LLC, long under sanctions and controlling 87% of the market. The Insider had previously identified the company as one of the key suppliers of Taiwanese machines to Russia’s defense industry. It was sanctioned for “supplying equipment and machinery for metalworking to Russian manufacturers.”
Only in rare cases were purchases made directly by end users—for example, JSC OKB Aerospace Systems, which produces onboard systems including for the Ka-226 helicopter, or JSC Dubna Cable Plant. For 2024, however, such transactions were exceptions: most manufacturers with in-house production facilities prefer to outsource foreign trade operations to intermediaries.
Japan’s Ministry of Economy, Trade and Industry said that Japanese equipment is not shipped directly to Russia, but acknowledged the problem of sanctions evasion involving Japanese goods, including metalworking machines. The ministry stressed that it is “focused on identifying third-country entities involved in circumventing sanctions” and “shares information with allied countries.”
“The ministry provides information and guidance to strengthen compliance mechanisms among Japanese companies. We are aware that Tsugami manufactures machines in China, and—as with other Japanese firms—the ministry supplies them with the necessary data to ensure strict export controls,” the response stated.