US Caterpillar equipment still being delivered to Russia despite sanctions
Equipment produced by the US company Caterpillar is still being delivered to Russia through a UK-based dealer in defiance of sanctions.
Source: The Insider
Details: US-made heavy equipment is being delivered to Russia by an official dealer, UK-registered company Vostochnaya Technika, even though Caterpillar has left Russia, and in contravention of US and UK sanctions.
More than US$24 million worth of Caterpillar equipment and spare parts was reportedly delivered to Russia during the first three months of 2024.
This includes industrial engines, spare parts for crawler loaders, bearers for road-building equipment, power generators for Caterpillar equipment, pumps and their components, gear wheels and many more.
Vostochnaya Technika has become a leading importer. Over 60% of the goods (by value) were made in the US.
Vostochnaya Technika is reported to be a wholly-owned subsidiary of Vostochnaya Technica UK Limited, a company managed by three South African citizens and an Australian citizen.
In 2023, Vostochnaya Technika’s sales revenue was over 20 billion roubles (about US$228 million), and it made a net profit of about 5 billion roubles (US$57 million).
Its parent company, Vostochnaya Technica UK Limited, earned over US$23 million in 2023. Its financial report states that the company has dealership agreements with Caterpillar and Trimble. The same report says that the parent company sold US$20 million worth of goods to the subsidiary in 2023 and US$130 million worth in 2022.
Caterpillar must be aware that its dealer is selling its equipment in Siberia, since Barloworld has reported that it is continuing to operate (referring to the war as the "Russian-Ukrainian crisis"), and the financial report of the UK subsidiary through which it operates in Russia is publicly available.
Background: On 14 June, US manufacturer Caterpillar finalised the transfer of its Russian assets to US investment fund Balchug Capital.
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