Russia appears to have bypassed Western sanctions and is ramping up the production of Kinzhal (Dagger) hypersonic missiles with the help of European firms, a report by The Times said on Thursday (Oct 26), citing independent investigators. Rostec, which is the state-owned Russian defence conglomerate, claimed that it ramped up the production of ammunition by 50-fold since the war in Ukraine began, despite Western sanctions, the report said.&nbsp;

Rostec added that it drastically increased the production rate of Dagger missiles. The Times report said KBM is the company that produces Daggers and other precision weapons for Rostec. KBM is headed by Sergei Pitikov whose family has been living in Sweden in a property that is suspected to have been purchased with profits made by the company.&nbsp;

Swedish public registers showed that over the last two years, Pitikov's daughter Maya bought a $528,265 (€500,000) house near Malmo and a Tesla, while she and her partner declared a combined pre-tax income of less than $84,517 (€80,000) a year.

Citing a Russian media outlet, The Times report said that both Rostec and KBM have been sanctioned by the United States and Britain. However, procurement and shipping documents showed that their Russian subcontractors continued to buy tools, machinery etc. from European as well as American firms.&nbsp;

It has been alleged that Osctec, a company based in Moscow, supplied KBM with thermal and cooling chambers. These chambers were shipped by Intertrans SP. ZO.O from Poland, The Times report said.&nbsp;

KEB, a company in Germany, allegedly supplied cables and turning machines to KBM through its Russian partner KEB-Rus. Another Russian contractor of Sergei Pitikov's company, Sonatec, is said to be a supplier of precision machine tools that can be used in the production of missile components. One of the suppliers of Sonatec includes Aberlink, a British company.

Speaking to the publication, Aberlink said it ceased trading with Sonatec in 2021 and that its products could be used for civilian as well as military use.&nbsp;

"For commercial and moral reasons no servicing or parts have been supplied over the past two years," Marcus Eales, Aberlink’s owner and director, said.&nbsp;

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Russia appears to have bypassed Western sanctions and is ramping up the production of Kinzhal (Dagger) hypersonic missiles with the help of European firms, a report by The Times said on Thursday (Oct 26), citing independent investigators.

Russia appears to have bypassed Western sanctions and is ramping up the production of Kinzhal (Dagger) hypersonic missiles with the help of European firms, a report by The Times said on Thursday (Oct 26), citing independent investigators. Rostec, which is the state-owned Russian defence conglomerate, claimed that it ramped up the production of ammunition by 50-fold since the war in Ukraine began, despite Western sanctions, the report said. Rostec added that it drastically increased the production rate of Dagger missiles. The Times report said KBM is the company that produces Daggers and other precision weapons for Rostec. KBM is headed by Sergei Pitikov whose family has been living in Sweden in a property that is suspected to have been purchased with profits made by the company. Swedish public registers showed that over the last two years, Pitikov's daughter Maya bought a $528,265 (€500,000) house near Malmo and a Tesla, while she and her partner declared a combined pre-tax income of less than $84,517 (€80,000) a year. Citing a Russian media outlet, The Times report said that both Rostec and KBM have been sanctioned by the United States and Britain. However, procurement and shipping documents showed that their Russian subcontractors continued to buy tools, machinery etc. from European as well as American firms. It has been alleged that Osctec, a company based in Moscow, supplied KBM with thermal and cooling chambers. These chambers were shipped by Intertrans SP. ZO.O from Poland, The Times report said. KEB, a company in Germany, allegedly supplied cables and turning machines to KBM through its Russian partner KEB-Rus. Another Russian contractor of Sergei Pitikov's company, Sonatec, is said to be a supplier of precision machine tools that can be used in the production of missile components. One of the suppliers of Sonatec includes Aberlink, a British company. Speaking to the publication, Aberlink said it ceased trading with Sonatec in 2021 and that its products could be used for civilian as well as military use. "For commercial and moral reasons no servicing or parts have been supplied over the past two years," Marcus Eales, Aberlink’s owner and director, said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Russia ramping up production of deadly missiles with help of European firms: Report

European firms are "caught in the crossfire" of the <a href="https://www.wionews.com/business-economy/us-recession-risk-rises-as-us-china-trade-tensions-heat-up-report-219279">US-China trade war</a> and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday.

The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China.

"Now the trade tensions are seen as another uncertainty on the business environment, something that won't be sorted out quickly whether there is a deal or not," said chamber vice president Charlotte Roule.

"The trade tensions, according to our members, are not good for business".

According to the survey, the trade war is one of the top concerns for European firms in China (23 per cent), after the Chinese economic slowdown (45 per cent), the global economy (27 per cent) and rising labour costs in China (23 per cent).

The study, which received replies from 585 firms, was conducted in January, as trans-Pacific trade tensions eased.

They ratcheted up again in early May with the United States and China slapping steep increases in punitive customs tariffs on each other.

But early this year, a quarter of European companies in China said they were already suffering from the US increase in tariffs on Chinese products.

Many European companies manufacture products in China and export them all over the world.

A small number (six per cent) have already relocated to circumvent the US penalties, or are planning to do so elsewhere in Asia or Europe.

But Europeans say they share many of the grievances raised by the Trump administration in its campaign against Beijing.

"The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling SOE reform and forced tech transfer," Roule stressed.

Some 20 per cent of the companies surveyed complained of being forced into technology transfers for the benefit of a Chinese partner, double the figure two years ago. For a quarter (24 per cent), such transfers were currently underway.

This state of affairs was "not acceptable", Roule said.

"The authorities are saying there are no technology transfers any more but this is not what we see in our survey," she said.

'Ambiguous rules'

More than half of the companies said legal protection of intellectual property was "inadequate", and 45 per cent say they suffer "unequal treatment" compared to their Chinese counterparts.

State firms and their subsidies are their main bone of contention.

The Europeans largely accuse these companies of enjoying preferential treatment, with 62 per cent saying they have better access to public contracts.

And the outlook is getting gloomier: only 45 per cent of the firms surveyed say they are optimistic about growth prospects for their sector over the next two years, compared to 62 per cent a year ago.

Half do not expect to see a level playing field in the next five years or even beyond.

Fifty-three per cent say business has become more difficult in the past year, up from 48 per cent a year ago, with "ambiguous rules and regulations" topping of the list of obstacles cited by companies.

Difficulties with access to the internet, which is closely monitored and censored by the Communist government, is an unfavourable factor for 51 per cent of respondents.

Despite the problems, China remains one of the top three global destinations for future investment by 62 per cent of the surveyed companies, a slight increase from last year, while 56 per cent plan to expand their business in the country this year.

European firms are "caught in the crossfire" of the US-China trade war and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday.

European firms are "caught in the crossfire" of the US-China trade war and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday. The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China. "Now the trade tensions are seen as another uncertainty on the business environment, something that won't be sorted out quickly whether there is a deal or not," said chamber vice president Charlotte Roule. "The trade tensions, according to our members, are not good for business". According to the survey, the trade war is one of the top concerns for European firms in China (23 per cent), after the Chinese economic slowdown (45 per cent), the global economy (27 per cent) and rising labour costs in China (23 per cent). The study, which received replies from 585 firms, was conducted in January, as trans-Pacific trade tensions eased. They ratcheted up again in early May with the United States and China slapping steep increases in punitive customs tariffs on each other. But early this year, a quarter of European companies in China said they were already suffering from the US increase in tariffs on Chinese products. Many European companies manufacture products in China and export them all over the world. A small number (six per cent) have already relocated to circumvent the US penalties, or are planning to do so elsewhere in Asia or Europe. But Europeans say they share many of the grievances raised by the Trump administration in its campaign against Beijing. "The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling SOE reform and forced tech transfer," Roule stressed. Some 20 per cent of the companies surveyed complained of being forced into technology transfers for the benefit of a Chinese partner, double the figure two years ago. For a quarter (24 per cent), such transfers were currently underway. This state of affairs was "not acceptable", Roule said. "The authorities are saying there are no technology transfers any more but this is not what we see in our survey," she said. 'Ambiguous rules' More than half of the companies said legal protection of intellectual property was "inadequate", and 45 per cent say they suffer "unequal treatment" compared to their Chinese counterparts. State firms and their subsidies are their main bone of contention. The Europeans largely accuse these companies of enjoying preferential treatment, with 62 per cent saying they have better access to public contracts. And the outlook is getting gloomier: only 45 per cent of the firms surveyed say they are optimistic about growth prospects for their sector over the next two years, compared to 62 per cent a year ago. Half do not expect to see a level playing field in the next five years or even beyond. Fifty-three per cent say business has become more difficult in the past year, up from 48 per cent a year ago, with "ambiguous rules and regulations" topping of the list of obstacles cited by companies. Difficulties with access to the internet, which is closely monitored and censored by the Communist government, is an unfavourable factor for 51 per cent of respondents. Despite the problems, China remains one of the top three global destinations for future investment by 62 per cent of the surveyed companies, a slight increase from last year, while 56 per cent plan to expand their business in the country this year.

EU firms 'caught in crossfire' of US-China trade war

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Russia ramping up production of deadly missiles with help of European firms: Report

EU firms 'caught in crossfire' of US-China trade war