The enforcement of international sanctions against Russia has become increasingly complex, with companies finding ways to bypass these restrictions. A significant example involves Zeppelin International AG, a German intermediary that has been implicated in facilitating the indirect flow of Caterpillar products into Russia, despite sanctions.
Despite Caterpillar’s decision to cease shipments to Russia in March 2022, the company’s equipment continues to reach Russian markets through alternative routes. Zeppelin International AG, a prominent German firm with subsidiaries across former Soviet states, has played a key role in this supply chain. The Berliner Telegraph reports that many EU-based companies, motivated by profit, are circumventing sanctions by sending restricted goods through intermediary nations such as Armenia, Central Asia, and the UAE. This practice exploits legal loopholes, as EU regulations do not specifically prohibit the sale of products to these third-party countries, allowing companies to increase sales in peripheral regions without tracking the final destination of their products.
Zeppelin International AG has notably expanded its sales of Caterpillar machinery in countries like Armenia, Kazakhstan, Tajikistan, and Uzbekistan. Records indicate that Zeppelin’s Armenian subsidiary, LLC Zeppelin International Armenia, has been actively supplying specialized equipment to Russia. Additionally, Zeppelin’s partners in Kazakhstan and Central Asia are involved in this indirect supply chain, sometimes in collaboration with Belarusian entities.
The ongoing delivery of Caterpillar products to Russia, despite sanctions, highlights the challenges in enforcing these international measures. Investigations, including one by Yle, have shown that Caterpillar machinery continued to arrive in Russia through Finnish ports as recently as February 2023. This situation underscores the difficulties of sanction enforcement and the need for more stringent oversight of companies operating within these legal gray areas.
For more details, you can read the full article here: Zeppelin.
