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Russia Conceals Missile Supply Chain via “Medical” Firms to Dodge Sanctions, Ukraine Says
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Ukraine’s military intelligence agency has disclosed the structure of the Russian holding “Shvabe,” identifying dozens of enterprises involved in the production of components for missiles and unmanned aerial vehicles despite formally presenting themselves as medical manufacturers.
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According to Ukraine’s Defense Intelligence (HUR) on April 15, data on 48 companies within the Shvabe holding—part of the state-owned Rostec corporation—has been published on the War & Sanctions portal as part of an ongoing effort to map Russia’s defense-industrial network.
HUR reported that the companies operate under civilian cover while contributing to the production of military systems. “It is likely that this ‘medical’ cover allowed a significant number of enterprises to avoid sanctions pressure—30 of them are still not subject to restrictions by any country in the sanctions coalition,” the agency stated.
The identified enterprises are linked to a wide range of military outputs, including strike and reconnaissance UAVs, targeting systems for aviation and armored vehicles, thermal imaging equipment, as well as components used in ballistic missiles and guided artillery munitions.
Among the companies listed by HUR:
The Moscow-based “Sapphire” plant produces photodiodes for Iskander-M ballistic missiles and photodetectors for Krasnopol-M2 guided artillery shells;
The “Photon” Central Design Bureau manufactures laser rangefinders and thermal imaging sights;
JSC “Germanium” produces germanium and related materials used in infrared optics, fiber optics, and nuclear and electronic industries.
According to HUR, Shvabe’s structure also includes foreign-linked entities, such as China-based SHVABE OPTO-ELECTRONICS CO., LTD and the Belarus-based “Shvabe (Minsk),” which expand access to technology and components.
The intelligence agency noted that 30 out of the 48 identified enterprises remain outside the scope of sanctions imposed by countries in the international coalition.
Shvabe is the eighth Rostec-affiliated holding whose structure has been publicly disclosed by Ukrainian intelligence. In total, HUR reports it has identified 553 Russian enterprises involved in supporting the country’s military capabilities.
Earlier, HUR reported that Russia’s “Knyaz Veshchy Oleg” reconnaissance drone contains dozens of foreign-made components, including electronics from the US and Switzerland, despite ongoing sanctions.
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