Ukraine's military intelligence agency, HUR, published data on 54 Russian enterprises within KRET, a defense holding under Russia's state-owned Rostec corporation, on 15 September. More than a third of KRET's enterprises face no sanctions from any country in the international sanctions coalition, HUR reported on 15 September.
Russia's defense industry is vast, and sanctions have targeted companies and individuals across the sector in multiple rounds since the full-scale invasion to restrict its ability to produce and finance weapons. But complex networks of state-owned holdings and subsidiaries can leave gaps, allowing some companies involved in military production to remain outside international sanctions. An August report by the anti-corruption organization NAKO found that the EU had sanctioned only 23% of 482 Rostec-linked entities.
What KRET makes for Russia's military
- KRET makes electronic warfare systems, friend-or-foe identification systems and onboard electronics for Russian fighter jets and helicopters, HUR said. Its companies also make other military equipment, including anti-drone systems and remotely operated machine guns.
- KRET also supports Russia’s missile production. The Signal plant in Stavropol makes compact jamming stations for 9M723 Iskander-M missiles, and the Kaluga Research Radio Engineering Institute makes electronic protection systems for 3M22 Zircon missiles.
- KRET’s main organization covers funding shortfalls for state defense contracts carried out by its companies, according to HUR.
Unsanctioned companies make missile and drone parts
HUR also named several of the 19 unsanctioned companies that it says are involved in Russian weapons production.
Among those firms, HUR identified manufacturers of navigation systems for Kh-59M2 and Kh-59M2A guided air-launched missiles and Orion drones, gyroscopes for 9M727 cruise missiles used in the Iskander system, and electric motors for drones.
The enterprises include JSC Inertial Technologies of Technokompleks, JSC Tambov Plant Elektropribor, and JSC Ulan-Ude Instrument-Making Production Association.
HUR calls for broader sanctions
The intelligence agency called for more defense companies to be added to international sanctions lists, better monitoring of compliance, and punishment for violations. KRET is the 10th Rostec holding whose enterprises HUR has published on its War&Sanctions portal. The portal now lists 764 Rostec enterprises, UNN reported.
On 8 September, HUR published data on 155 enterprises belonging to Roselektronika, another Rostec holding. Nearly half were not under international sanctions.
