About past, present and future of Ukraine

Search mobile

Main Business American Caterpillar equipment is supplied to Russia to bypass sanctions

Business

American Caterpillar equipment is supplied to Russia to bypass sanctions

627
American Caterpillar equipment is supplied to Russia to bypass sanctions

Share this article

Heavy equipment from the American manufacturer Caterpillar is being supplied to Russia by the official dealer, the British company Vostochnaya Technika, despite both American and British sanctions and Caterpillar's withdrawal from Russia. This was reported by The Insider.

According to the publication, more than $24 million worth of Caterpillar equipment and spare parts were delivered to Russia in the first three months of 2024. These include industrial engines, parts for track loaders, bearings for construction equipment, Caterpillar generators, pumps and their components, gear wheels, and more. Based on the product descriptions, these appear to be new parts and assemblies.

The leading importer in this transaction is LLC "Vostochnaya Technika." According to the "origin of goods" graph, over 60% (by value) of the goods were manufactured in the USA.

The importer of Caterpillar products, LLC "Vostochnaya Technika," is a wholly-owned subsidiary of the British VOSTOCHNAYA TECHNICA UK LIMITED, whose management includes three citizens of South Africa and one citizen of Australia. Until the end of 2023, 100% of the shares of this company belonged to Barloworld Equipment Uk Limited. The owner was then replaced by South African Barloworld Investments.

As reported by the media resource, Caterpillar cannot be unaware that its dealer is trading its equipment in Siberia, as Barloworld openly stated its intention to continue business operations (while also referring to the conflict as the "Russian-Ukrainian crisis"), and the financial report of the British subsidiary through which business is conducted in Russia is also publicly known.

Caterpillar Corporation is a leading designer and manufacturer of excavators, mining equipment, construction machinery, power equipment, gas turbines, and other complex industrial machines and equipment.

In May 2022, the corporation announced its withdrawal from Russia. However, assets that remained were seized by Putin's decrees in favor of former managers of Sberbank. Yet, the page for the Tosno plant of Caterpillar still remains on the parent corporation's website.

The Odessa Journal
more articles

Top article

The Ministry of Defense has signed a contract for the construction of a service center for repairing drones in Ukraine
War

The Ministry of Defense has signed a contract ...

Dmytro Kuleba: Ukraine and Croatia have agreed to use Croatian ports for exporting Ukrainian grain
Business

Dmytro Kuleba: Ukraine and Croatia have agree ...

New sanctions: Defence industry, political parties and individuals linked to oligarchs
Business

New sanctions: Defence industry, political pa ...

Volodymyr Zelensky: We are preparing for the next Ramstein meeting, we expect solidly grounded decisions to meet the prospects on the battlefield
War

Volodymyr Zelensky: We are preparing for the ...