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Company Response

29 Apr 2024

Author:
Scorpion Power Systems

Scorpion Power Systems response

I have seen the research paper you are referencing, and it deeply saddens me that they seem to only condemn the companies, without taking into perspective what the companies are in fact doing.

I appreciate your email to at least have the counter perspective.

Scorpion Power System is a manufacture of Hobby grade Electric Motors, which have since been classified as “dual use goods” for their apparent use in military drones.

I have read the mentioned article thoroughly. I can very much understand the challenges in controlling the export of dual use goods which eventually make their way to Russia and fuel their military operations. I as well sympathize with the effect this has on the Ukrainian population in their effort to counter this unjust invasion of your country.

In the article we are listed as one of the Companies for Analysis, to which I have comments for consideration.

I will like to bring to your attention that since the Russian invasion of Ukraine, Scorpion Power System has CEASED all direct sales of motors to Russian customers. We have implemented this directive by our own initiative, as I, and our company owner, do not support the Russian invasion of Ukraine, and we do not want our products to be used in this unjust invasion effort. Further, we have instructed all of our dealers in China, that they must vet their customers, and that they and their customers, must sign disclaimers noting the prohibition of exporting our motors which knowingly ship to Russian customers. Further to this, all high QTY product inquiries, from customers of any country origin, are personally evaluated by myself, and if there is suspicion that it is for use with Russian customer, then the sale of product is denied. Such high QTY inquiries of our products have come from numerous customers from around the world including Russia, Belarus, China, Armenia, Canada, Lithuania, and more. Our directive, has upset many customers, and also resulted in angry customers personally coming to our office building to try and negotiate with us, but the sales were still denied.

By our own initiative, since the start of the war, we have denied the sales of more than 1.5 million USD of our products, which we deemed as “potentially” a product which would end up being exported to Russia. This account to a large portion of our annual sales volume, but we have accepted these lost sales, by our moral obligation to not support an unjust cause.

In addition to the above, to assist Ukrainian companies , we offer special discount pricing to ALL Ukrainian companies which need to buy our product. We are supporting many Ukrainian companies with products which they need to fight against this unjust invasion.

Further, we have as well cooperated with a request from the Conflict Armament Research, Tracing Unit, who wrote to us trying to trace a motor product which was found on a shot down Russian drone. By the results of the investigation it was found the motor was produced in 2019 (pre-invasion), and the company who supplied the product to the Russian company was found, and this company was placed on a official sanction list due to our efforts and cooperation.

In the article, Section III.3. Bolstering Corporate Responsibility. The article speaks abundantly about how Corporate companies should take action and have responsibility to ensure that dual use products do not end up being sold to customers located in Russia.

I personally feel like Scorpion Power Systems has gone to great lengths to prohibit the export and sale of our products to Russia, so I am disheartened to read that despite our efforts, we are still listed as a company for analysis.

I hope all readers will take the above mentioned statement into consideration.

Scorpion Power System is in support of Ukraine against the unjust invasion of your country.

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