8 August 2025

According to State Customs Committee records reviewed by The Insider, Tsugami’s exports of metalworking machines and parts to Russia jumped from $2.5 million in 2021 to $62 million in 2024. Almost all of the equipment was brand new: just 4 of the 206 shipments in 2024 were marked as used. The paperwork shows the goods were mainly routed through China.

Tsugami specializes in modern, high-precision CNC machines that outperform most of their Chinese rivals. In Russia, they’re used across industries, including by Radiopribor, an open joint stock company which makes onboard navigation systems. Reports of Tsugami’s shipments to Russia first surfaced in 2023, when Oleksandr Lemenov, then an adviser to Ukraine’s prosecutor general, raised the alarm. Since then, the flow of equipment has only grown...

In response to The Insider’s inquiry, Japan’s Ministry of Economy, Trade and Industry said Japanese equipment is not exported directly to Russia. The ministry acknowledged the problem of sanctions evasion involving Japanese goods, including metalworking machines, and said it was “focused on identifying third-country organizations involved in circumventing sanctions” and “sharing information with allied nations.”

“The ministry provides information and guidance to strengthen compliance mechanisms at Japanese companies. We are aware that Tsugami manufactures machines in China, and, as with other Japanese firms, the ministry supplies them with information to ensure strict export controls,” the response also said.

Tsugami did not respond to The Insider’s written or phone inquiries.