A new investigation by The Insider reveals that Russian customs brokers openly advertise services to bypass Western sanctions, clearing over $4.4 billion in sanctioned goods in 2024. For overseas chemical and industrial equipment suppliers, this highlights the persistent risk of diversion to Russia via third countries and the critical role brokers play in keeping sanctioned supply chains alive.
Who are customs brokers?
Customs brokers in Russia handle the paperwork and resolve issues during importation, earning millions of dollars. In 2024, they helped clear sanctioned goods worth more than $4.4 billion, counting only shipments valued over $20,000 that are restricted by both the EU and the U.S. The true total is likely much higher. For example, broker Dzhamal Davitashvili filed over 25,000 customs declarations in 2024, covering $600 million worth of goods including machinery, electronics, and equipment. The most frequently listed item was multilayer printed circuits. He also processed approximately 30 tons of brassieres worth around $5 million.
In their own words
Customs brokers openly advertise sanctions evasion. Baltic Logistic Service (BLS) offers a service titled "Customs clearance and delivery of goods from EU countries to Russia under the condition of sanctions." One entry explains how to circumvent EU sanctions using partner countries like Serbia, which buys German generators and sends them to Russia. 1Kargo operator promises to "locate, purchase, and deliver products from abroad, bypassing sanctions." ITB Group states it imports goods through the "parallel import" mechanism. Sokoltrade offers payment agent services, transferring funds to suppliers in Europe, China, or other countries within 3–4 business days.
Western goods for Putin's war machine
Half of all goods cleared by brokers (by value) passed through just 60 brokerage firms. Unlike arms manufacturers, brokers face little risk of sanctions as they are not direct transaction participants. The investigation identifies 30 leading firms specializing in sanctioned products. Notable examples include Korean company Demsko, which produces metal-cutting equipment. In 2025, a company named LLC Demsko Equipment Plant was certified for oil refining equipment. Broker LLC GK VED-Service cleared over $12 million worth of Kirchner products in 2024, including a steam superheater and preheater for methanol production at the Nakhodka Mineral Fertilizer Plant.
What buyers should watch
Overseas chemical and industrial equipment suppliers should monitor their distribution chains for diversion to Russia via third countries like Serbia, China, or others. The open advertising of sanctions-evasion services by Russian brokers indicates a mature, organized network that can redirect even complex chemical processing equipment, such as steam reformers for ammonia or methanol plants. Compliance teams should verify end-user declarations and consider enhanced due diligence for shipments to countries that may act as transshipment hubs. The risk of reputational and legal exposure remains high, even if brokers themselves are rarely sanctioned.
Source: Read the original report | Published: October 31, 2025