The Insider identifies four major Chinese banks facilitating transfers to firms supplying sanctioned equipment to Russian oil companies

RU

An investigation by The Insider has uncovered the involvement of four major Chinese banks in the transfer of funds to companies supplying sanctioned equipment to Russian oil firms. They are: China Everbright Bank Beijing, Bank of Ningbo, Bank of China, and Industrial and Commercial Bank of China (ICBC). An analysis of equipment deliveries to Russian state-owned energy giant Gazprom reveals details of the transactions.

The Prirazlomnaya offshore platform, operated by Gazprom subsidiary Gazprom Neft Shelf (ООО «Газпром нефть шельф»), needed a gas turbine for its power unit to provide electricity to the ice-resistant complex located on the open sea shelf. The turbine was purchased by LLC EnergoTechService (ООО «ЭнергоТехСервис») — a company led and partially owned by members of the Svergin family, whose patriarch previously worked at Gazprom Neft.

EnergoTechService is an active enterprise with a 2023 revenue of 8 billion rubles ($82.2 million) and around 900 employees.

An American-made turbine from Dresser-Rand (a Texas-based turbine manufacturer acquired by Siemens in 2015) was imported to Russia by Beijing-based firm Datek Reachey Mechatronics Engineering Ltd — a firm co-owned by Xilang Liu and Chen Lin. According to the customs declaration, the used turbine cost EnergoTechService 28,791,000 yuan (just over $4 million at the time).

The Insider discovered that the total turnover from EnergoTechService to Datek Reachey Mechatronics Engineering Ltd via its account at China Everbright Bank Beijing between 2023–2024 amounted to 41,853,539.4 yuan (nearly $6 million), suggesting some payments could have been intended to cover this transaction. The Insider’s attempts to obtain a comment from China Everbright Bank Beijing were unsuccessful. The bank's financial markets department suggested calling a general line that often goes unanswered, while Everbright Bank’s New Economy USD Fund claimed it has no English-speaking employees and hung up. The Insider also sent an inquiry to the bank's Australian office.

Siemens Energy was more forthcoming, informing The Insider that Dresser-Rand branded turbines have not been sold for quite some time and stressing that Siemens Energy hasn’t sold turbines to Russia in recent years. The company also conceded that, with skilled personnel, such a turbine might have been dismantled and reinstalled elsewhere, though Siemens Energy does not monitor these turbines remotely. A representative later confirmed that Siemens Energy had no involvement in this particular transaction involving the old turbine. Until recently, oil companies had rarely purchased second-hand equipment of this kind.

Continuing its investigation into EnergoTechService's transactions, The Insider discovered that the company had also purchased sanctioned Caterpillar machinery spare parts from JP China Trade Int'l Co., Ltd. In 2023, JP China Trade Int'l Co., Ltd supplied Caterpillar parts to EnergoTechService valued at a total of 1,653,910.56 yuan (approximately $235,200).

On Sept. 25, 2023, EnergoTechService transferred this exact amount to the Chinese supplier’s account via Bank of Ningbo. Despite reaching out to Bank of Ningbo through its official press email, The Insider did not receive any response.

EnergoTechService also sourced sanctioned goods from other Chinese suppliers. These transactions were processed through two other Chinese banks. In March 2024, the company bought Caterpillar-manufactured diesel generator pumps from Wuhan Weyeah Internal Combustion Engine Parts Co., Ltd. Although these pumps were produced in China, they are classified as American under U.S. export control regulations. The total value of these sanctioned goods was 101,949.38 yuan (close to $14,500) — a relatively small fraction of EnergoTechService's total transactions with Wuhan Weyeah, processed via the Bank of China’s Hubei Branch.

Bank of China does not have a general email for inquiries. After reaching an English-speaking employee who took down our questions and contact information, The Insider also sent a request to the bank’s U.S. office. We are yet to receive a response.

In another case, in March 2024 the Chinese firm Jilin Langyi Mechanical Equipment Company Limited sold additional sanctioned parts produced by Caterpillar Inc. in the UK and China to EnergoTechService. The sanctioned parts were valued at 63,591 yuan ($9,000) while the total invoice, which included multiple items, amounted to 428,099 yuan ($60,800).

EnergoTechService then transferred 693,274.00 yuan (approximately $98,500) to the Chinese company's account at the Industrial and Commercial Bank of China (ICBC) in 2024.

The use of ICBC's website contact form is not possible without a Chinese mobile number. Although The Insider managed to reach the investor relations department, an employee refused to escalate the inquiry or to provide a contact number for the appropriate department. An additional inquiry was sent to ICBC’s U.S. office.