South Korean firm YG-1 supplies metal-cutting equipment to Russia’s defense industry — and to two plants producing nuclear weapons

YG One Rus CEO Pavel Belikov openly flaunts his cooperation with the Russian authorities. In an interview from 2021, he details how he learned the subtleties of circumventing sanctions controls during his work as CEO of KP-EMAG (КП-EMAG) — a joint venture between Russia’s Krasny Proletary (lit. “Red Proletarian”) plant and the German machine tool manufacturer EMAG.

In the interview, Belikov was quoted as saying: “Shortly before the sanctions were imposed [in 2014], I brought several machine tools to Russia for a well-known Urals customer. Due to the circumstances, we were forced to participate in a tender through an intermediary company. We won, shipped the machines to the customers, but as a result, we had big problems with BAFA (the German Federal Office of Economics and Export Control).”

Belikov now combines his position as CEO of YG One Rus with his position as chairman of the board of Russia’s National Union of Producers and Suppliers of Metalworking Equipment and Tools (NSPOIM; «Национальный союз производителей и поставщиков оборудования и инструмента для металлообработки», or «НСПОИМ»).

This NGO aims to consult and collaborate with relevant ministries and agencies, drawing government attention to the development of the metalworking industry in Russia. NSPOIM assists its members in securing contracts with Russian plants. For instance, on September 28-29, 2023, NSPOIM delegates visited ODK-Perm Motors JSC (АО «ОДК-Пермские моторы»), a producer of gas turbine aircraft engines for both civil airliners and IL-76 military transport aircraft.

Contracts with nuclear weapons manufacturers

But the most notable buyers of the South Korean technology turned out to be two nuclear weapons factories. During 2022 and 2023, the Elektrokhimpribor Combine (ФГУП Комбинат «Электрохимприбор») purchased fifteen types of YG-1 drills and seven types of taps.

Established in 1947 in Lesnoy (then known as Sverdlovsk-45), the Elektrokhimpribor Combine is one of Russia’s oldest producers of nuclear weapons, manufacturing uranium-235 isotopes since its inception and atomic bombs since 1951.

In 2022 and 2023, FSUE Mayak Production Association (FSUE Mayak PA; ФГУП Производственное объединение «Маяк») purchased three types of taps and one type of cutter made by YG-1.

The first facility of the Russian nuclear industry, Mayak PA is located in the Chelyabinsk Region and comprises seven plants and ten nuclear reactors, and it remains a key producer of weapons-grade plutonium. On February 12, 2024, LLC NPO Centrotech (ООО НПО «Центротех»), a manufacturer of centrifuges for uranium enrichment and a subsidiary of the Rosatom State Corporation, announced that it would be monitoring prices for the supply of YG-1 tools, including inserts, milling cutters, and 13 types of drills.

Aside from the companies listed above, YG-1 tools were acquired by the following firms after Russia invaded Ukraine:

JSC “Scientific Production Center of Automatics and Instrument Building Named After Academician N.A. Pilyugin” (which produces missile control systems, including those intended for the Topol-M intercontinental ballistic missile)
FGUP Production Association “Oktyabr” (which produces radio navigation systems and radio altimeters for airplanes and helicopters)
JSC OKB Fakel (which produces engines for spacecraft)
S.P. Korolev Rocket and Space Corporation (RSC) Energia (which produces rocket and space equipment)
JSC “Marine Underwater Arms - Hydropribor” (which manufactures torpedoes and sea mines)
Russian State Scientific Center for Robotics and Technical Cybernetics (which produces space, land and sea-based robotic complexes).

The supplier data for these contracts has been removed from Russia’s unified public procurement information system, making it impossible to determine from public records whether the supplies were made directly by YG-One Rus or through third parties.

Tool production in Russia

Aside from importing South Korean equipment, YG-1 is also involved in the production of metal-cutting products in Russia itself. In 2018, Minicut, a specialized cutting tool production facility, was established in the town of Verkhnyaya Salda in Russia’s Sverdlovsk Region, within the Titanium Valley («Титановая долина») special economic zone.

Minicut International, a Canadian manufacturer of metal-cutting tools, is a subsidiary of YG-1 CANADA INC. Photos of the Russian factory feature the Minicut Tooling Manufacturing logo. Minicut's key specialties include tools for machining both titanium and high-strength steel, which are crucial for the aerospace industry.