A Belarus-based subsidiary of British company Tollgate Systems Limited has been identified as supplying components to Russia’s military-industrial sector despite Western sanctions. The entity, Brake Hydraulics, reportedly delivered parts to Russian factories involved in the production of military equipment after the full-scale invasion of Ukraine began in 2022. Among the recipients is the sanctioned Arzamas Machine-Building Plant, known for producing armoured vehicles. According to findings detailed in an investigation into Belarus subsidiary supplying parts to Russian military plants, shipments included components for Ural military trucks and armoured personnel carriers. The case highlights continued gaps in enforcement of export controls.
Corporate structure enables indirect supply routes
Brake Hydraulics operates as part of the broader Fenox Global Group, which maintains production facilities and distribution networks across several European countries. This structure allows the group to function within EU markets while subsidiaries operate in jurisdictions with fewer restrictions. The layered corporate model complicates oversight and obscures supply chains linking European business entities to sanctioned Russian industries. Such arrangements create legal and regulatory grey zones that are difficult to monitor effectively. The result is a persistent channel through which restricted goods may be diverted.
Links to politically connected ownership raise scrutiny
Fenox Global Group is controlled by businessman Vitaly Arbuzov, who is reported to have close ties to Belarusian authorities. Despite the alleged involvement of affiliated companies in supplying Russia’s defence sector, Arbuzov has not been placed under Western sanctions. This absence of personal restrictions has drawn attention to potential inconsistencies in sanctions enforcement. It also raises questions about criteria used to designate individuals linked to sensitive supply chains. The situation underscores perceived gaps in targeting key beneficiaries of such networks.
Supplies underscore Russia’s reliance on foreign components
The reported deliveries reinforce assessments that Russia remains dependent on imported components for military production. Items such as automotive and mechanical parts, while often classified as civilian-use goods, are integral to military logistics and armoured systems. The inability to fully substitute these inputs domestically has driven efforts to secure supplies through third countries and affiliated entities. This reliance has become a structural feature of Russia’s defence industry under sanctions pressure. Continued access to such components sustains production capacity despite restrictions.
Enforcement challenges weaken sanctions effectiveness
The case illustrates broader difficulties in implementing sanctions regimes across complex global supply chains. Even where export bans are in place, indirect transfers via subsidiaries and intermediaries can circumvent restrictions. Analysts argue that without stronger monitoring, investigative capacity and penalties, such loopholes will persist. The credibility of sanctions as a tool of economic pressure depends on consistent enforcement. Weaknesses in this area risk undermining collective efforts to constrain Russia’s military capabilities.
Calls for tighter controls and coordinated action
The findings have intensified calls for more stringent oversight of corporate activities linked to sanctioned jurisdictions. Proposals include expanding personal sanctions against business figures, increasing transparency requirements and strengthening cross-border regulatory cooperation. Greater coordination between the United Kingdom, the European Union and allied partners is seen as essential to close existing gaps. Measures targeting subsidiaries and indirect supply routes are likely to become a focus of future policy adjustments. The objective is to align formal restrictions with effective enforcement mechanisms.
