High-precision Hyundai Wia machine tools critical for Moscow’s arms industry reach Russia disguised as domestic imports to Kazakhstan

RU

Hyundai Wia machining centers, originally imported into Kazakhstan under the pretense of domestic use, were in fact illegally rerouted to Russia in violation of international sanctions, The Insider has discovered. An investigation was able to trace the network of intermediaries involved in the sale of these high-precision South Korean machine tools, which are critical for Russia’s defense industry.

Kazakh company BGM Production LLC imported at least 10 Hyundai Wia CNC machining centers from South Korea, with a total value exceeding $5 million. These machines were transported to Kazakhstan via the Dostyk border checkpoint with China. In 2024, BGM Production also shipped Hyundai Wia machines and related components directly to Russia, declaring approximately $4 million worth of metalworking equipment. The buyer was Promraiser («Промрайзер») — a company that reported revenues exceeding 650 million rubles (over $7.5 million) in 2023.

In Russia, Hyundai Wia machines are actively advertised on specialized industrial marketplaces such as Stankoteka and Metalink. Before procurement data was classified, records showed that the machines were purchased by key Russian military-industrial firms including Gazoturbostroenie Salyut (a manufacturer of jet engines), Novosibirsk Mechanical Plant Iskra (a producer of industrial detonation systems), and Kamensk-Uralsky Foundry Plant (which supplies braking systems and wheels for military and civilian aircraft). The Insider has reached out to Promraiser, BGM Production, and Hyundai Wia for comment.

CNC metalworking centers are a critical component of modern military production, as only advanced multi-axis machines can achieve the precision required for high-performance weapons manufacturing. Hyundai Wia, a leading manufacturer in the precision machining industry, was originally founded as an auto repair shop and is now part of Hyundai Motor Group, playing a key role in machine tool production and robotics.

Prior to Russia's full-scale invasion of Ukraine, Moscow’s main suppliers of high-precision machine tools were Germany, Switzerland, and Japan. Following the imposition of sanctions, Taiwanese and South Korean manufacturers filled the gap, though authorities in both countries have made efforts to restrict these exports — with mixed results.