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Russian metallurgists, who supply their materials to manufacturers of weapons and armored vehicles, are critically dependent on foreign equipment. As The Insider discovered, products of the Italian company Danieli, a major producer of steelmaking equipment, have not been withdrawn from the Russian market — contrary to the company’s statements. Its products continue to flow to Russia’s steelworks. To avoid violating European regulations — at least on paper — the embargoes are being circumvented through a Chinese subsidiary, allowing the company to continue to profit from cooperation with Russian metallurgists. Meanwhile, business is on the rise at its Russian subsidiary: in 2023, the balance of its financial flows increased by a factor of 35.

According to the article, Danieli continues to operate in Russia despite EU sanctions, collaborating with steel giants like Severstal and MMK, both linked to military production. Danieli reportedly uses its Chinese subsidiary to bypass sanctions, enabling the supply of equipment to Russia. In 2023, its Russian subsidiary’s cash flow increased 35-fold, contradicting claims that the business is unprofitable or disconnected from the military sector. The company’s justification hinges on technicalities, but the financial and strategic realities suggest complicity in sustaining critical industries that support Russia’s war economy. At what point does this move from legal maneuvering to outright enabling?