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American company accused of violating sanctions, doing business with Russian arms industry

By John Peck |

The e-mail reads:

"Haas no longer supplies machines, replacement parts, or anything else to any companies in Russia. Statements to the contrary are false."

But our investigation puts that account into doubt. Customs records reviewed by "NewsHour" show that shipments continued for months after Russia's invasion began. At least 18 shipments were made to Russia directly from Haas worth $2.8 million from March 4 through October of last year. Sanctions or no, Russia's arms industry depends on technology developed in other countries.

Agiya Zahrebelska is the head of the sanctions department on the National Agency on Corruption Prevention, the Ukrainian government body that sets sanctions policy. She told the "NewsHour" the problem was much wider than just Haas. Germany's Siemens and Japan's DMG Mori are also computer numerical control machine tool manufacturers Ukraine believes to be key to the continuing function of Russia's arms industry.

Agiya Zahrebelska, National Agency on Corruption Prevention: Approximately 70 percent to 80 percent of a Russia machine industry is Western machine, is imported machine.

You have no guided missile, you have no tank, you have no rifle, a simple rifle, if you have no CNC machine.

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