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On 1 November, the Ministry of Economic Affairs of Taiwan announced that it had permanently suspended the supply of machine tools to the Russian Federation. This decision was the result of stricter export control rules that were introduced after a number of journalistic investigations into such shipments were published. According to the news portal TimeUkraineIsrael, citing DW, the new measures include a significant increase in fines for violating sanctions, which now amount to NT$1 million (approximately USD 31,100).
Strengthening export controls
According to the ministry, tighter control over supplies was a necessary step, as Taiwan had previously been one of the main suppliers of metalworking machines to Russian military enterprises. The ministry is actively conducting outreach to manufacturers, urging them to comply with the law and control the final recipients of their products. As a result of these measures, the volume of machine tool exports from Taiwan to Russia has “dropped to zero”.
Taiwan in the context of military supplies
In January 2023, a joint investigation by Taiwanese and Russian media revealed that despite the pro-Ukrainian stance of the Taiwanese authorities, the country has become a major supplier of metalworking machines to the Russian military-industrial complex, including through third countries such as Turkey. In February, Taiwan imposed sanctions on several Russian companies mentioned in the investigation.
This summer, a new investigation revealed that the Taiwanese company Giant Force tried to circumvent the restrictions by planning to supply Russia with special equipment to test the heat-resistant coating of missiles. However, thanks to the vigilance of banks, particularly Chinese banks, this attempt was thwarted.
Circumventing sanctions: German machine tools
At the same time, Russia’s military-industrial complex continues to receive machine tools from German manufacturers, circumventing sanctions. According to an investigation by the German broadcaster SWR, in 2023, more than 300 automated machines were received that are used to produce parts for the army, including engines and aircraft components. More than two-thirds of German machines are supplied to Russia through intermediaries in Turkey.
Experts emphasise that German companies often do not know where their products are going, but they could find out if they wanted to. They call on the German government to tighten export regulations, as circumventing sanctions is becoming an extremely lucrative business.
Taiwan has demonstrated its determination to comply with international norms and rules, while focusing in particular on reducing the risks of military use of its products. The situation on the market for the supply of equipment demonstrates the importance of control and transparency in international trade, which is critical in the context of geopolitical conflicts.
