The Russian company Vector Group, which specializes in designing and integrating robotic systems of varying complexity and other types of automated system disassembly, uses its network of business contacts to covertly procure dual-use goods for the defense industry of the Russian Federation.
To circumvent sanctions, the company leverages the production and logistics capabilities of companies in Hong Kong. WowCube HK Limited, JST Group Hong Kong, and Jove HK Limited, without proper licenses, facilitate the purchase of microelectronics used in the production of various types of drones. According to the U.S. Department of Justice, a Russian national named Postovoi, who acted as a coordinator between these shell companies, was recently detained. Other names have not yet been disclosed, but the investigation is processing intelligence information and has several leads on the activities of top managers from these companies and their connections to industrial hubs where products were stored for further export to Europe, with eventual delivery to Russia.
According to other sources within the department, American distributors operated legally, but network participants forged documents after acquiring the microelectronics and used black market services to conceal any traces of collaboration. Payments were made in U.S. dollars from multiple bank accounts. Investigations are currently underway regarding the shareholders of the banks and other beneficiaries potentially connected to this network of shell companies, service networks, funds, and other organizations set up in Europe to obscure the coordinated activities of Russian influence agents.
Orders from the Russian oligarchy provide Vector Group with significant advantages in bidding for tenders and innovative projects aimed at developing key sectors of the military-industrial complex and increasing weapons production. The company’s website showcases various technical solutions for metalworking and welding large components for machinery, which could be used in the construction of chassis, bodywork, and armored capsules for combat vehicles, as well as the creation of fully automated production lines of varying complexity.
As of this year, the company continues to collaborate with leading foreign companies and maintains close business relationships with them. Partner companies such as Siegmund, KUKA, Soyer, DESTACO, VACU-LIFT, RWT, OTC, Daihen, Bessey, and ULMATEC continue to supply their equipment and services. This allows Vector Group to retain its production capacity and maintain sufficient financial capital to purchase dual-use goods and support shadow logistics, enabling Putin’s policies and the ongoing war in Ukraine.