American company accused of violating sanctions, doing business with Russian arms industry, 14 March 2023

Russia's economy depends on revenues from oil exports and American sanctions have been tuned up to choke its war effort against Ukraine. But there’s one area important to the Kremlin’s military output that has so far avoided scrutiny. It involves Haas Automation, a high tech American manufacturer that may be flouting export controls. Simon Ostrovsky reports with support from the Pulitzer Center...

Haas vice president Peter Zierhut denied the company was still doing business in Russia.

In a written statement, he told "NewsHour" that Haas had cut ties with its Russian distributor on March 3 of last year, just a week after Russia's full-scale invasion of Ukraine began...

...Customs records reviewed by "NewsHour" show that shipments continued for months after Russia's invasion began. At least 18 shipments were made to Russia directly from Haas worth $2.8 million from March 4 through October of last year. Sanctions or no, Russia's arms industry depends on technology developed in other countries.

Agiya Zahrebelska is the head of the sanctions department on the National Agency on Corruption Prevention, the Ukrainian government body that sets sanctions policy. She told the "NewsHour" the problem was much wider than just Haas. Germany's Siemens and Japan's DMG Mori are also computer numerical control machine tool manufacturers Ukraine believes to be key to the continuing function of Russia's arms industry...

According to Zahrebelska, at least two sanctioned entities have displayed Haas equipment in their own promotional materials, including the Vektor Research Institute in St. Petersburg, which helps manufacture satellites likely used to track ships, aircraft, and ground vehicles during Russia's invasion of Ukraine.

Another is the Scientific Research Institute of Electrical Carbon Products in the Moscow region, which makes satellites and electronics. That's in addition to the footage from RATEP we showed at the beginning of this report, which a Russian television channel first broadcast just three months ago.

The Ukrainian authorities further believe Haas continues to help maintain the equipment already sold to Russian defense firms with spare parts and software updates...