Austria dismantles network that routed sanctioned goods to Russia

Monday 10th August 2026 on 16:45 in Austria

Austria, DSN, Russia sanctions

Austria’s Directorate for State Security and Intelligence has dismantled an international company network that allegedly bypassed EU sanctions on Russia, ORF reported. A Vienna-based company was at the centre of the operation.

According to the Interior Ministry, the network routed sanctioned industrial goods to Russia through third countries. The shipments included machine tools and specialised metalworking tools.

The DSN said the goods were used to manufacture engines for cruise missiles and fighter aircraft, as well as other military equipment. The network operated through companies in Turkey, the United Arab Emirates, Hong Kong, Belarus, Kyrgyzstan, South Korea, Poland and Lithuania.

European manufacturers were presented with forged end-user certificates stating that the goods would remain in those countries. In fact, they reached companies linked to the Russian state-owned defence conglomerate Rostec.

The 28-year-old managing director of the Vienna company was arrested in May and remains in pre-trial detention. The Belarusian citizen is accused of involvement in the operation. Authorities also seized electronically controlled CNC machines used to manufacture tools, along with specialised tools worth about 140,000 euros.

In August 2025, prosecutors ordered searches of four properties in Vienna and the seizure of four data storage devices. Their analysis showed that industrial goods had been procured for Russian military users since 2019, before Russia’s full-scale invasion of Ukraine.

After sanctions were tightened, the deliveries were arranged through third countries. Investigators have documented shipments worth more than 3.3 million euros to Russian defence companies since 2022. The company generated more than 700,000 euros in revenue in Austria.

State Secretary Jörg Leichtfried said it was unacceptable for highly precise European technology to reach the production of cruise missiles and air defence systems through indirect routes. DSN Director Sylvia Mayer said the case showed the lengths to which international networks go to evade sanctions and pledged continued cooperation with national and international partners.

Source 
(via ORF)