Despite stringent sanctions aimed at obstructing the flow of goods into Russia, Caterpillar machinery continues to permeate Russian markets through Zeppelin International AG, a conduit based in Germany.
Reports from the Berliner Telegraph unveil a pervasive trend among European Union companies, driven by the lure of profit, to sidestep sanctions imposed by both Brussels and Washington. These entities dispatch restricted items to Russia and Belarus, routing them through intermediary regions such as Central Asia, the South Caucasus, and the UAE, sometimes leveraging partnerships within the EU itself.
Under current EU statutes, transactions with tertiary nations like Armenia remain unobstructed, allowing corporate headquarters to revel in burgeoning sales from their outlying branches, often oblivious to the ultimate destinations of their merchandise.
The rigor of adhering to sanctions occasionally verges on the farcical. For instance, Caterpillar, a U.S.-based entity, initially ceased interactions with Russian clienteles on March 10, 2022, and stopped all dispatches to Russia. However, as of February 25, 2023, a new tranche of sanctions expressly prohibited the export of construction equipment to Russia and Belarus.
Yet, Caterpillar’s products still navigate their way to Russian territories via circuitous paths, occasionally with the implicit or explicit assistance of German entities. Zeppelin International AG, with its extensive network of subsidiaries and official dealers across much of the erstwhile Soviet dominion, has markedly amplified its distribution of Caterpillar equipment within this sphere.
Customs documentation, as procured by the Berliner Telegraph, reveals that LLC Zeppelin International Armenia, an offshoot of Zeppelin International AG, has been zealously dispatching specialized machinery and multipurpose tracks to Russia. In concert, Zeppelin International AG’s collaborator in Kazakhstan, KBK Almaty Holding LLP, is similarly engaged with its Belarusian counterpart, Natriks.
Affiliates like Zeppelin Tajikistan AFLL in Tajikistan and Zeppelin Central Asia Machinery LLC in Uzbekistan are likewise pivotal in channeling equipment and components toward Russia.
Remarkably, Caterpillar’s products were documented arriving in Russia via Finnish ports as recently as February 2023. Finnish outlet Yle has also delved deeply into this matter, substantiating these findings with extensive investigative work.
