Ukrainian forces carried out a drone strike in early April on the Alabuga Special Economic Zone in Russia’s Tatarstan region, which was sanctioned by the U.S. government for its production of Iranian unmanned aerial vehicles (UAVs) in late February.
The strike, which injured at least seven people, “was likely targeting a new drone production facility at the Alabuga site,” according to media reports.
The strike, which injured at least seven people, “was likely targeting a new drone production facility at the Alabuga site,” according to media reports.
April 2 drone attack on Alabuga Special Economic Zone. Source: Arbat Media
The U.S. designation and the Ukrainian drone attack illustrate the growing concerns of these zones becoming crucial hubs for Russia’s wartime economy.
According to the Russian government, there are around 50 of these economic zones in Russia with over 1,000 different businesses located in them.
A recent Kharon investigation has identified several other economic zones and technoparks in Russia that house businesses that import restricted Western goods – including semiconductors, electronics, and ball bearings – from third party intermediaries to support the development of Russian military technology and other key industries.
One such zone is the St. Petersburg SEZ – a government-owned entity that houses companies, like Lazernye Sistemy, that were sanctioned for helping develop Russia’s military.
According to the Russian government, there are around 50 of these economic zones in Russia with over 1,000 different businesses located in them.
A recent Kharon investigation has identified several other economic zones and technoparks in Russia that house businesses that import restricted Western goods – including semiconductors, electronics, and ball bearings – from third party intermediaries to support the development of Russian military technology and other key industries.
One such zone is the St. Petersburg SEZ – a government-owned entity that houses companies, like Lazernye Sistemy, that were sanctioned for helping develop Russia’s military.
Main complex of St. Petersburg SEZ. Source: Indparks.ru
Lazernye Sistemy was sanctioned by the U.S. in November 2023 “for operating or having operated in the manufacturing sector of the Russian Federation economy." The U.S. designation stated that the company “creates products for the air navigation and meteorology fields and holds a license for the development, production, and testing of armed and military equipment.”
Lazernye Sistemy facility located in St. Petersburg SEZ. Source: Yandex Maps
Since Russia’s invasion of Ukraine, several businesses located in the St. Petersburg SEZ have imported millions of dollars worth of foreign-made components, including many that are on the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) Common High Priority List. The list includes items that have potential military applications or could contribute to the development of advanced technologies.
Murommash is an industrial technopark located in the Russian city of Murom. According to its promotional materials, the zone advertises its capabilities in several sectors, including machine-building and metalworking.
One of the businesses located at the technopark is PO Murommash AO, a precision machinery manufacturer that develops and supplies high-tech steering and navigation technology, including engine components, for Russian military suppliers like KAMAZ.
KAMAZ was sanctioned by the U.S. in 2022 “for operating or having operated in the defense and related materiel sector of the Russian Federation economy.” KAMAZ was also sanctioned by several other governments, including the U.K., the EU, and Canada.
According to trade data, PO Murommash AO has imported over $200,000 worth of foreign industrial components, including BIS-restricted items like ball bearings, which are commonly used in engine manufacturing.
Another special economic zone is located in the city of Innopolis, Tatarstan, which was founded in 2012 as a tech industry hub. The Innopolis SEZ has stated that its goal is to bring together businesses that work on “technical innovation activities.”
Since the invasion of Ukraine, business residents of the Innopolis SEZ have imported large quantities of high-risk products that are included on the BIS Common High Priority List.
One such company is Vendista OOO, a financial transaction technology developer that imported restricted Western semiconductor components worth tens of thousands of dollars between January 2022 and January 2023 from a Hong Kong supplier.
Other companies located at the Innopolis SEZ include Rusdronoport OOO and Bars-Grup AO.
Rusdronoport OOO develops defense systems that protect oil refineries from drone attacks, while Bars-Grup AO provides IT services to Russian government entities.
Murommash is an industrial technopark located in the Russian city of Murom. According to its promotional materials, the zone advertises its capabilities in several sectors, including machine-building and metalworking.
One of the businesses located at the technopark is PO Murommash AO, a precision machinery manufacturer that develops and supplies high-tech steering and navigation technology, including engine components, for Russian military suppliers like KAMAZ.
KAMAZ was sanctioned by the U.S. in 2022 “for operating or having operated in the defense and related materiel sector of the Russian Federation economy.” KAMAZ was also sanctioned by several other governments, including the U.K., the EU, and Canada.
According to trade data, PO Murommash AO has imported over $200,000 worth of foreign industrial components, including BIS-restricted items like ball bearings, which are commonly used in engine manufacturing.
Another special economic zone is located in the city of Innopolis, Tatarstan, which was founded in 2012 as a tech industry hub. The Innopolis SEZ has stated that its goal is to bring together businesses that work on “technical innovation activities.”
Since the invasion of Ukraine, business residents of the Innopolis SEZ have imported large quantities of high-risk products that are included on the BIS Common High Priority List.
One such company is Vendista OOO, a financial transaction technology developer that imported restricted Western semiconductor components worth tens of thousands of dollars between January 2022 and January 2023 from a Hong Kong supplier.
Other companies located at the Innopolis SEZ include Rusdronoport OOO and Bars-Grup AO.
Rusdronoport OOO develops defense systems that protect oil refineries from drone attacks, while Bars-Grup AO provides IT services to Russian government entities.
