Cronkite school of journalism at
Arizona state university.
>> Back in March, we revealed
allegations that a machine giant
sold millions of dollars of
technology to the Russian arms
industry.
They denied the story and said
it had halted sales to Russia.
But according to new research,
they may still be supplying the
Russian arms industry
indirectly.
>> This is the instrument
building plant in Russia.
It manufactures high-end optics
used by the Russian military.
They do not want you to know
where they get their high-tech
equipment.
They missed a spot.
Zoom in here and you can see the
distinctive red H above the
control panel.
They are not alone in being
partial to these machine tools.
They are used throughout the
Russian military industrial
complex because they can be
programmed to shave metal into
almost any shape necessary.
For years they sold machine
tools in Russia.
Even though sanctions have been
in place against the Russian
defense industry formals a
decade.
Only after the full-scale
invasion of Ukraine last year
did they officially sever their
relationship and made no direct
or indirect shipments to Russia
ends March 3 of last year area
but the organization that
originally exposed their
dealings in Russia says even
that might not be true.
He told us spare parts needed to
maintain the machines already
being used in Russia continue to
flow into the country by a
mysterious group in China.
They don't seem to have a
website or a phone number.
It was set up just two weeks
after they pulled out of Russia.
>> This Chinese company
conducted around 200 shipments
of parts.
All of those shipments are worth
about $600,000.
>> Records show that they were
being shipped to Russia as
recently as April of this year.
More than a year after the
company said it halted shipments
to the company -- country.
Many of them appear to be made
specifically for a machine tool.
One of which is owned by this
plant.
Further procurement records show
the plant is one of their
clients.
It is possible the spare parts
sold by China were special order
to maintain this machine.
They have been subject to U.S.
Sanctions since 2015.
They did not always obscure the
logos on their witness.
In this promotional video from
seven years ago, several
machines are featured to
highlight how modern the factory
is.
In 20, they announced that they
needed a replacement engine.
Illustrating how reliant the
Russian arms industry was on
sales support.
Today, they use those machines
to shape the casings for their
various sites and scopes.
They are collected in this
wooden box before being painted,
finished, and it'd -- fitted.
>> They are supplied to the
Russian army.
And exported.
>> The applications are endless.
So is the lens of Russian
defense firms that use this
equipment.
They make flight control for
attack helicopters.
They make electronic
surveillance systems for the
army and Navy.
They make communication systems
for the Russian military.
The list goes on.
That is why Ukrainians have been
pushing U.S. Enforcement
agencies to act more
aggressively against American
companies is products continue
to flow to the Russian arms
industry.
>> They have very top --
powerful tools at their
disposal.
>> He told us Russia has managed
to ramp up production despite
the unprecedented sanctions.
>> We were quite disappointed
about our recent findings.
The rate of production has
doubled.
I think this is quite obvious
now.
Much more needs to be done.
>> They say they have acted
forcefully to restrict Russian
access.
Like setting sanctions on
Russian companies and export
controls on American form --
firms.
They were violating those rules.
They would not say if they were
investigating the company.
We reached out to the company to
inform them that there equipment
continues to be shipped to
Russia.
They did not agree to an
interview, but they said they
had no record of sales to the
entity or to Russia.
They were being made by third
parties in contravention of
their policy.
>> If they are selling those
parts, they did not acquire them
from us.
We have not conducted any of
those parts.
>> They told us they voluntarily
stopped doing business with
Russia during the full-scale
invasion of Ukraine.
Sanctions have been in place
since 2014.
>> I don't need any of this.
>> They own the only formula one
racing team.
Which was prominently teacher
and a popular Netflix series.
The deal meant putting the
Russian flag on the racecars.
>> It very strange.
>> They only cancel the
sponsorship after the full-scale
invasion.
Officials at the department of
commerce and treasury have yet
to give any sign that they plan
to go after American
manufacturers who may have
violated the sanctions.
Nor is there any sign that they
will add them to the list of
officially sanctioned entities.
♪♪