British firms’ exports are almost certainly bolstering Russia’s war machine in Ukraine, Sky data analysis finds
British companies are exporting hundreds of millions of pounds of equipment and machinery which almost certainly ends up in Russia, undermining the official sanctions regime and bolstering Vladimir Putin’s war machine, according to data analysis from Sky News.
The items – which include drone equipment, optical supplies and heavy machinery – are being sent to countries in the Caucasus and Central Asia, including Kyrgyzstan, Armenia, Uzbekistan and others, from where they are understood to be forwarded on to Russia.
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The numbers show that despite the sharp fall in the flow of goods to Russia, following the imposition of trade sanctions after its invasion of Ukraine two years ago, large volumes of sensitive, “dual use” British goods are still finding their way to Moscow.
The analysis underlines the scale of Britain’s participation in a shadow economy which helps keep Russia’s military supplied with parts and hardware for the weaponry it uses against Ukraine
Flows of British goods to Russia itself have fallen by 74% since the outbreak of war, following the imposition of sanctions. The vast majority of exports still flowing to Russia are food, medical products or other humanitarian items.
Flows of heavy machinery, electrical equipment and cars have dropped to nearly zero.
Those figures imply the sanctions regime has been incredibly successful, and indeed, a government spokesperson said: “We have implemented the most severe package of economic sanctions ever imposed on a major economy.”
However, closer examination of Britain’s official trade statistics provides an alternative prism.
They show that while UK exports to Russia have fallen sharply, UK exports to a suite of former Soviet satellite states – from Uzbekistan to Georgia – have risen at an unprecedented rate.
British exports to Kyrgyzstan, the small former Soviet satellite state, have risen at a breakneck rate, by over 1,100%. These exports are dominated by the heavy machinery and vehicles which can no longer be sent directly to Russia.
A Europe-wide problem
According to Robin Brooks, former chief economist of financial body the IIF, this is something which has been going on for some time, with other European countries, most notably Germany and Poland, also sending large quantities of hardware to Russia via these Caucasus and Central Asian states.
“They’re clearly getting an order from somewhere that is a Russian satellite that happens to be domiciled in one of these Central Asian countries,” he said.
“What happens then? Maybe there’s plausible deniability, maybe they know… all we know for sure is that the rise in export volumes that is happening is completely insane, and is inconsistent with any underlying data in these countries.
“So the only reasonable explanation is: Russia.
“From the Western European and especially the EU side, I would say, this has been going on for a while. It is at this point widely known in Brussels, and I think there is a key question as to why nothing is being done at a central EU level to stop this?”
British officials argue that they are constantly attempting to tighten the UK sanctions regime. A spokesperson told Sky News: “We also recently announced the creation of a new Office of Trade Sanctions Implementation to strengthen our enforcement of sanctions.
“Any non-compliance with these tough sanctions is a serious offence and punishable through large financial penalties or criminal prosecution.”
Exports to other Russia-adjacent states
However, the scale and breadth of the trade is striking. UK export volumes haven’t just spiked to Kyrgyzstan. They are also up nearly as sharply to Armenia, which, according to Mr Brooks, has recorded a sharp increase in its onward goods exports to Russia.
Doubly worrying is the fact that among the goods being sent to these countries are significant quantities of items considered “dual use” – which can be repurposed into weaponry.
Found in battlefield remains of Russian weapons
The European Union has a list of 45 categories of goods – “common high priority items” as they call them – which have been found in battlefield remains of Russian weapons.
Sky News analysis shows that British exports to four Caucasus and Central Asian states of these goods, which have been documented as being used to kill Ukrainian citizens – have risen by over 500% since the outbreak of war.
The analysis shows that by far and away the biggest category of goods being sent to these four Caucasus and Central Asian nations was “parts of aeroplanes, helicopters or unmanned aircraft” – in other words, equipment which can be used to make drones and other aeronautic units.
British companies have exported £6m worth of these goods to the four countries, above what they historically tend to export to them.
Other items being sent by UK exporters include data processing machines, aeronautic navigation equipment and radio navigation aids.
According to Tom Keatinge of RUSI: “It’s absolutely a red flag if you’re producing that kind of equipment… and you’ve got this big spike in exports to Kyrgyzstan.
“You’ve surely got to stop and ask yourself: why is that? Am I indirectly resourcing the Russian military? And clearly you don’t want to be doing that. And indeed, in doing that, you’re probably in breach of sanctions.
“The tragedy is that whenever the Ukrainians dissect a drone, or a cruise missile or communications equipment that they get their hands on, there are components in those bits of equipment that come from the EU, that come from the UK and come from the US, and have been manufactured since February 2022.
“So these are fresh exports, these are not legacy exports.”
Ukraine’s justice and energy ministers have resigned amid a major embezzlement and kickbacks scandal involving the state nuclear power company.
Volodymyr Zelenskyy called for the removal of Justice Minister Herman Halushchenko and Energy Minister Svitlana Grynchuk on Wednesday, with the pair later submitting their resignations.
The damaging scandal – fast becoming one of the most significant government crises since Moscow launched its full-scale invasion – has put top officials under scrutiny.
It could not come at a worse time for Ukraine, as Russia’s renewed attacks on energy infrastructure cause rolling blackouts and Kyiv’s outnumbered forces retreat under relentless assaults.
Svitlana Grynchuk file image. Pic: Reuters
Site of a Russian drone strike in Kharkiv, Ukraine, on 12 November, 2025. Pic: Reuters
At the centre of the scandal, Mr Halushchenko and other well-known ministers and officials are alleged to have gained payments from constructing fortifications against Moscow’s assaults on energy infrastructure. Former Deputy Prime Minister Oleksiy Chernyshov is also alleged to have been involved.
Mr Halushchenko said he would defend himself legally, while Mr Grynchuk posted on social media: “Within the scope of my professional activities there were no violations of the law.”
The findings of a 15-month investigation, including 1,000 hours of wiretaps, were revealed by the same anti-corruption watchdogs Mr Zelenskyy sought to weaken earlier this year.
Herman Halushchenko – file image. Pic: Reuters
Blackout in Ukraine. Pic: Reuters
These resulted in the detention of five people, and another seven linked to about $100m (£76m) in alleged kickbacks in the energy sector.
Ukrainian officials are scrambling for European funds to manage mounting energy shortages as Moscow targets critical infrastructure and natural gas production in an attempt to damage public morale.
The nation has been plagued by corruption since gaining independence, and Mr Zelenskyy was elected on a mandate to eliminate graft.
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Military procurement scandals also led to the ousting of Defence Minister Oleksii Reznikov in 2023.
Oleksandr Merezhko, a lawmaker with Zelenskyy’s party, said the scandal looks “really bad in the eyes of our European and American partners”.
He said: “Internally this scandal will be used to undermine unity and stability within the country. Externally, our enemies will use it as an argument to stop aid to Ukraine.
Volodymyr Zelenskyy, Galushchenko and former Energoatom CEO Petro Kotin. Pic: Reuters
“While Russians destroy our power grid and people have to endure blackouts, someone at the top was stealing money during the war.”
But questions remain over how high the alleged corruption goes.
The National Anti-Corruption Bureau, known as NABU, refrained from identifying the suspects.
But it said they included a businessman, a former adviser to the energy minister, an executive who oversaw physical protection at state energy company Energoatem, and others responsible for money laundering. It dubbed the scheme “Midas”.
The agency also accused eight people of abuse of office, bribery, and possession of disproportionate assets.
The investigation, which NABU said conducted over 70 raids, was welcomed by the Ukrainian president, who urged officials to cooperate with it. Energoatom said the inquiry didn’t disrupt its operations.
Situation on the battlefield
NABU released excerpts of tapes in which the network, using code names and secretive language, discussed blackmail and pressuring Energoatom contractors to extract 10% to 15% in bribes and kickbacks in exchange for them to do business without facing internal blocks.
The network took advantage of a regulation enforced during martial law prohibiting contractors from claiming debts in court from companies providing essential services, such as Energoatom, which has annual revenues of around $4.7 billion (£3.6 billion). Four others worked to launder the money at a Kyiv office.
The tapes, which have not been independently verified, say about $1.2 million was handed to a former deputy prime minister, whom the plotters called “Che Guevara,” after the Argentinian revolutionary leader.
Ms Svyrydenko also said the cabinet submitted proposals to apply sanctions against Timur Mindich, a close associate of Zelenskyy, and businessman Alexander Tsukerman.
World
Police in Germany arrest suspected Hamas member who ‘acquired Glock pistols to attack Jewish institutions’
Police in Germany have arrested a suspected Hamas member who allegedly obtained guns and ammunition to attack Jewish targets.
Lebanese-born Borhan El-K was picked up on the motorway after crossing into Germany from the Czech Republic on Tuesday night.
In a statement, the German federal prosecutor’s office alleged in August he had procured an automatic rifle, eight Glock pistols and more than 600 pieces of ammunition in Germany.
It’s claimed the weapons were then handed to Wael FM, another suspected member of the Palestinian armed group Hamas, in Berlin.
Wael FM was arrested with the items on 1 October along with two other men named as Adeb Al G and Ahmad I.
Police officer – file image. Pic: iStock
The men, whose full names have not been released due to German privacy laws, were charged with preparing a serious act of violence endangering the German state and being members of a foreign terrorist organisation.
Authorities believe that the group had been gathering supplies since the summer.
“The weapons were intended for use by Hamas in assassination attacks on Israeli or Jewish institutions in Germany,” the federal prosecutor’s office said in a statement at the time.
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A source suggested that the first three men were detained when they met for the weapons handover.
The arrests came a day before Yom Kippur, the holiest day of the Jewish calendar.
Hamas – which is considered a terrorist organisation by the EU – previously denied any connection to the men and said the allegations against it were “baseless”.
Another alleged member of the group, Mohammed A, was arrested on 3 November in London at the request of German police.
He’s accused of taking five handguns and ammunition from Abed Al G and transporting them to Vienna where they were stored.
This morning Danish Police searched premises linked to Borhan El-K and another suspect in and around Copenhagen following Mr El-K’s arrest on Tuesday.
He was due to appear before a judge today.
In February, four suspected Hamas members went on trial in Berlin accused of plotting attacks on Jewish sites in Europe.
Hackers working for the Chinese military and government have been probing Australia’s key infrastructure and telecoms network, warns spy chief.
Mike Burgess, director-general of security for the Australian Security Intelligence Organisation, warned Australians could have their water and electricity supplies cut off as well as extensive banking trouble if hackers managed to cause widespread telecoms disruption.
“Foreign governments have elite teams investigating these possibilities right now,” Mr Burgess insisted.
However, China‘s foreign ministry accused Burgess’s statement of spreading false narratives.
Pic: Reuters
The warning demonstrates the difficulty faced by Australian prime minister Anthony Albanese in trying to keep China close economically while trying to mitigate security concerns.
Burgess said espionage was estimated to have cost the country A$12.5bn (£6.2bn) last year, including billions in trade secrets and intellectual property.
In particular, he highlighted the activities of the Chinese hacking groups Salt Typhoon and Volt Typhoon.
He highlighted how Salt Typhoon had previously penetrated US telecoms systems intending to disrupt operations and pre-position for potential sabotage.
Burgess also warned that Australian companies could be crippled as trade competitors or that elections could be affected.
Chinese officials made complaints to the Australian government and private sector about ASIO whenever he spoke
publicly about China, Burgess said during a speech last week. “It won’t stop my resolve,” he said.
Not the first time alarms have been raised
Concerns were raised in Canberra in February after Chinese warships conducted live-fire drills with minimal warning in the Tasman Sea.
Australian authorities only heard about the drills when a commercial pilot for Virgin Australia notified Airservices Australia.
Chinese frigate Hengyang, one of three vessels involved in the circumnavigation of Australia. Pic: Australian Defense Force /AP
The drills resulted in 49 flights having to change their path.
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