Danfoss Equipment Sold to Russia Despite Sanctions

Danish company Danfoss has been implicated in a report by Radio IIII, which states that its products are among those sanctioned by the EU for their use in Russian military systems. The report indicates that these products, including conical roller bearings and electrical equipment, have been shipped to Russia via intermediaries in China, Turkey, and Kazakhstan. Danfoss has clarified that it does not engage in direct sales to these foreign companies and has contracts in place to prevent its products from being resold in Russia. Peter Bay Kirkegaard, a senior consultant at DI Global Trade, highlighted the difficulties faced by Danish firms in ensuring their products do not reach Russia. He noted that opportunistic intermediaries in countries like Turkey and China often disregard Western sanctions, profiting from the resale of these goods. Kirkegaard suggested that the EU may need to consider imposing sanctions on these intermediaries to better enforce compliance among Danish companies. In a related development, Radio IIII reported that another Danish company, Grundfos, has also seen its sanctioned products end up in Russia, with at least 40 instances recorded between September 2023 and January 2024. These products were reportedly sent from two Turkish customers, prompting Grundfos to arrange a meeting with them to address the issue. The ongoing challenges faced by Danish companies underscore the complexities of international trade amid stringent sanctions, as they strive to navigate the risks posed by third-party resellers.