Russian Explosives Plant Circumvents Sanctions with Siemens Equipment

Western Machinery in Russian War Production

A new investigation by Reuters reveals that the state-owned Biysk Oleum Plant in southern Siberia has obtained Siemens equipment through a network of intermediaries, despite extensive Western sanctions.

The factory, which produces explosives such as TNT and RDX, purchased the equipment via the Russian intermediary Tekhpribor. Tekhpribor imported the components from Chinese suppliers, including Huizhou Funn Tek and New Source Automation Technology. Documentary evidence and a comparison of product codes confirmed that the equipment was identical to what Biysk Oleum Plant had ordered.

Labor Shortages Drive Automation

According to Reuters, advanced machinery plays a crucial role in ramping up production, especially in an industry marked by workforce shortages. Automated machines increase productivity and require fewer staff—a strategy that has become a necessary response to the lack of specialized workers.

Siemens emphasizes that the company complies with all international sanctions and demands the same from its customers. Nevertheless, the company acknowledges that its products can still end up in Russia without its knowledge.

Plans for Massive Expansion

In May 2025, it was reported that Biysk Oleum Plant is undergoing a major expansion. According to government tender documents, the new facility will have the capacity to produce 6,000 tons of explosives annually. This equates to the filling of an additional 1.28 million OF-29 artillery shells—a boost that could significantly reinforce Russia’s artillery capabilities.

Satellite images from March 2025 show extensive construction activity on the factory premises, supporting reports of ongoing expansion.

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