Austria uncovers international network circumventing EU sanctions to supply Russian cruise missiles, jets
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Austria's intelligence agency uncovered an international network circumventing EU sanctions imposed against Moscow to supply Russian cruise missiles and fighter jets, the country's Interior Ministry announced Aug. 10.
"It is unacceptable that highly precise European technology is being channeled into the production of cruise missiles and air defense systems. We will continue to take decisive action, with full international cooperation, against those actors who attempt to circumvent legal prohibitions to support the Russian arms industry," Austrian State Secretary Jorg Leichtfried said.
An Austrian shell company was established to export sanctioned goods to Russia for use in cruise missiles and fighter jets, among other military equipment, the Interior Ministry wrote.
Computer-controlled cutters used for mass production and specialized metalworking tools were the main products exported through intermediary countries, including Belarus, Hong Kong, Kyrgyzstan, Lithuania, Poland, South Korea, Turkey, and the United Arab Emirates.
"Using forged end-user certificates, European manufacturers were misled into believing the goods would remain in third countries. In reality, they were destined for companies affiliated with the Russian state-owned conglomerate Rostec," Austria's Interior Ministry said.
Rostec is subject to international sanctions and accounts for half of Russia's military production, the company claims.
Russian weapons Rostec is behind include the Pantsir air defense system, the Kh-101 cruise missile, and the Iskander ballistic missile used in recurring fatal strikes against Ukrainian civilians. A Russian ballistic missile attack killed four, including a three-year-old child in Ukraine's capital and Kyiv Oblast days earlier on Aug. 8. Another ballistic missile attack on Aug. 5 killed 17 people.
A Belarusian citizen behind the scheme, who was managing director and co-owner of the Austrian shell company supplying the equipment, was arrested in Austria on May 13, and property worth 140,000 euros was seized.
The company procured industrial goods for Russian military use since 2019, and deliveries to Russian arms manufacturers since 2022 totalled 3.3 million euros, the Ministry wrote.
The investigation also involved a search-and-seizure operation a year prior, in August 2025, during which Austrian authorities seized 40 data storage devices.
Moscow has aimed to circumvent sanctions imposed by Ukraine and its allies as Russia continues to wage its war.
On Aug. 10, Canada's Foreign Ministry announced it would join Ukraine and Europe in imposing sanctions on Russian defense manufacturer Streit Group.
"The sanctions announced today will reduce Russia's military capabilities in its war against Ukraine by disrupting and hindering Streit Group's capacity to supply military technology and equipment to Russia," the Foreign Ministry wrote.
