A blow to the Russian defense industry: ISW spoke about a likely new package of EU sanctions

ISW analyzed a new possible package of EU sanctions against Russia / Collage 24 Channel

The European Union is preparing a new package of sanctions against Russia for its full-scale invasion of Ukraine. In particular, these trade and economic restrictions can hit the defense-industrial base of the aggressor country.

Analysts at the American Institute for the Study of War emphasized that such sanctions make Russia vulnerable to developing its own weapons. At the same time, they noted that Russia is trying to replace European equipment with a domestic product.

The new EU package could hit Russia's defense industry powerfully

Experts emphasized that the European Union appears ready to ban the export of machine tools and major components of equipment for the production of weapons to Russia. In particular, these machines are important in the industrial production of the aggressor country.

The ban, if enacted and effectively implemented, could deal a significant blow to Russia's defense industrial base, ISW noted.

Analysts, citing Bloomberg journalists, emphasized that the 12th package of EU sanctions includes a ban on the export of precision machine tools and machine parts used by Russia to produce weapons and ammunition, such as welding machines, lithium batteries, thermostats, engines and drones.

“Russia imports high-precision machines and precision tools from Europe to support ammunition production and other efforts of the defense industrial base,” the experts' report said.

The American Institute for the Study of War also noted that Russia's almost complete dependence on European and American precision machine tools makes Russia especially vulnerable to such sanctions. At the same time, they noted that at the start of the war, Russia imported almost all the machines it needed.

Russia is preparing to replace foreign recruitment with its own

Analysts said that in 2023, Russia is increasingly trying to find an import substitution solution for the purchase of Western-made precision machine tools. Thus, in May 2023, the Russian government approved the so-called “Concept of Technological Development until 2030.”

It encourages domestic production of high-tech products, such as precision machine tools, and obliges domestic enterprises to produce at least 75 percent of Russia's high-tech products by 2030, ISW said.

Experts noted that the Russian STAN group, which is the largest manufacturer of high-precision machines, is the main element of the Russian import substitution program. At the same time, the head of the RT-Capital subsidiary Semyon Yakubov said on October 26 that with the help of the STAN group, Russian authorities hope to satisfy the “great need” for modern precision machines in the absence of Western imports.

“Western sanctions and the war in Ukraine have sharply increased Russia’s demand for domestically produced machine tools. Yakubov noted that STAN was unable to fulfill even a third of the total volume of Russian orders for precision machines in 2023 amounting to about 67.1 million US dollars,” – experts emphasized.

In conclusion, they added that Russia's demand for precision machine tools far exceeds the current production capabilities of the aggressor country.