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South Korean Company Behind Recent Deliveries of Machinery Powering Russian Missile Production
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Machine tools manufactured by South Korea’s DN Solutions have been discovered at Russian facilities producing Lancet drones and Iskander missile launchers, according to a recent investigation by Ukraine’s Economic Security Council (ESCU), cited by The Korea Times on May 2.
The equipment, valued at over $19 million, was reportedly delivered to Russia via Chinese distributors, including a company named Silver Technology.
Ukrainian authorities said customs and procurement data confirm the delivery of new machines under contracts signed in 2023 and 2024 — well after the start of Russia’s full-scale invasion of Ukraine.
Vladyslav Vlasiuk, sanctions commissioner for Ukrainian President Volodymyr Zelenskyy, told The Korea Times that the presence of this equipment raises questions about the effectiveness of DN Solutions’ oversight of its supply chains.
“When equipment repeatedly ends up in a sanctioned jurisdiction — even indirectly — this reasonably warrants an internal review,” he said.
In response, DN Solutions denied exporting any products to Russia since the start of the full-scale Russian invasion. The company stated it complies with South Korean export control laws, which prohibit the sale of strategic goods to restricted countries. It also claimed to have ended cooperation with Chinese firms implicated in unauthorized re-exports once the issue became known.
“We have informed dealers and agencies that selling our equipment to Russia and circumventing export controls are strictly prohibited,” a DN Solutions spokesperson said. “Any violation of this policy may result in strict sanctions from relevant authorities.”
According to findings presented in the report, ESCU officials argue that the company should have been able to track the re-export of its products. They point to public trade databases and Russian import declarations filed between May 2024 and February 2025 that reference DN Solutions’ equipment.
“The issue is no longer about whether DN Solutions had a direct contract with Russia,” said Agiya Zagrebelska, ESCU’s policy director. “It is about whether the company exercised adequate control over the distribution of its products. Regulatory action remains a realistic outcome.”
Ukraine has urged closer cooperation with Seoul to prevent further sanctions evasion, including enhanced monitoring of intermediaries and shared risk indicators. Vlasiuk emphasized that third-country distributors must not become transit points for strategic goods. “A timely and coordinated response to these signals serves our shared interests,” he said.
The report also notes that South Korea’s Ministry of Trade, Industry and Energy acknowledged the ongoing challenge of preventing indirect shipments to Russia. Officials confirmed they are monitoring exporters in cooperation with the Korea Customs Service and other governments.
“We do impose penalties when there is evidence of contact with Russia,” said Park Sung-joon, head of the ministry’s trade controls policy division.
Earlier, The Insider revealed that Israeli metalworking tools worth over $10 million were supplied to Russia’s defense sector in 2024 despite sanctions. Products from ISCAR, Vargus, Carmex, and EROJET were rerouted through China and Uzbekistan, reaching manufacturers of Su-35 jets, S-400 systems, and other military hardware. The investigation highlights how Russian arms production still relies on Western-grade tools, bypassing restrictions through third-country intermediaries.
