Half of Russia’s arms production comes from over 492 Rostec enterprises. Yet sanctions coverage varies widely, from 5% to 70%

Kalashnikov and more. According to NAKO’s estimates, the Russian state-owned corporation Rostec brings together at least 492 enterprises. These companies account for about 50% of Russia’s weapons and military equipment production. Yet sanctions against them remain uneven.

How exactly?

This was analyzed by NAKO Senior Researcher Viktoriia Vyshnivska. She presented some of the findings at the event “Fixing the Gaps in Sanctions: How to Weaken Russia’s Military-Industrial Complex, Energy Sector, and Shadow Fleet.” Representatives of the Ministry of Foreign Affairs and civil society also took part at our invitation.

NAKO’s research shows that sanctions targeting Rostec are inconsistent. At the same time, Victoria noted that major sanctions regimes have different goals and mechanisms, which partly explains this uneven coverage.

The United Kingdom has imposed restrictions on around 5% of Rostec enterprises, the European Union on 22%, and Ukraine on 70%. In the United States, sanctions cover 45% of companies, with roughly one-fifth of these measures implemented through export controls.

“This is important because sanctions and export controls produce different effects. Export controls prohibit the supply of certain types of goods to these entities,” Viktoriia Vyshnivska explained.

In the United States, there is also a list of companies subject to export controls. During the latest update, more than 250 Russian and Belarusian companies were added. This helps identify companies supporting Russia’s military-industrial complex even if they are not formally sanctioned.

“In the absence of the most powerful sanctions actor — objectively, the United States — it may seem that the situation is hopeless. However, it is still possible to influence restrictions on certain companies through export controls,” Vyshnivska noted.

The event is organized by the Independent Anti-Corruption Commission with the support of the International Renaissance Foundation.