Sanction Evasion: How Georgia Facilitates Russia’s Military Supply Chain

By Aidan Yusif and Natia Mikhelidze

Our experiments and foreign trade statistics show that drones, computer processors, GPS devices, and memory cards are being sent to Russia via Georgia. These dual-use items are useful in everyday life – but also for assembling weapons of war.

Although the export of these products to Russia was banned back in December 2022, not all countries have complied with the restrictions.

One carrier told us directly that there was no problem; he could take drones from Georgia to Russia via Azerbaijan, as they had done before. Another carrier offered an easier route to send “chips” from Tbilisi to Samara — directly through Vladikavkaz.

Our seven-month journalistic investigation exposed schemes to supply Russia with sanctioned products entering from Georgia, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan and Uzbekistan.

Experiment #1 – How are drones being sent from Georgia to Russia? “Through Azerbaijan”

On May 21, we contacted the transportation company “Kairo Logistics” via WhatsApp, posing as regular customers, and requested the shipment of 30 drones from Tbilisi to the Russian city of Samara. We said they were needed for a video editing studio.

We were contacted by an operator named Evgeni, based in Krasnodar. After asking for the drone model, volume, and quantity, he informed us of the route: “We will take the cargo through Azerbaijan or Iran. We are currently working on these options, but it will most likely go through Azerbaijan.”

The next day, while confirming the conditions, the operator reassured us. “I give you a 100% guarantee and assure you that your cargo will reach its destination,”  he said. “We have transported sanctioned items before and know what it entails.”

It was time to agree on the price. The operator from “Kairo Logistics” asked for 500,000 rubles ($US5,815) to transport 30 drones from Tbilisi to Samara. However, their website’s price calculator showed an approximate cost of 25,000 rubles ($US290) for transporting this weight of cargo. Evgeni was charging us 20 times more.

When we asked why, he replied: “It’s a sanctioned cargo. You understand yourselves; you need to communicate with positions using envelopes” (presumably meaning bribes at the border).

It was easy. The transit company promised to pick up and deliver the cargo, requiring only an invoice and electronic signature on the contract from us. After obtaining sufficient information from the company, we stopped the experiment and ceased sending any cargo to Russia.

Before publishing this article, we called “Kairo Logistics” again, and said that we were journalists and wanted to conduct an interview. At first, Evgeni introduced himself as the company’s manager, but within two seconds, he told us that he was just an intern and redirected us to a manager named Alex Bagatov.

Bagatov confirmed that despite the sanctions, prohibited goods were still being transported to Russia. Only the transportation routes have changed.  If the cargo was previously shipped directly to Russia, now it passes through Turkey or Azerbaijan. We asked Bagatov how they managed such a risky business amid international sanctions. He replied that they changed the origin documents for the cargo.

“Look, for the country supplying the goods, there is no problem because the goods are not sent to Russia, but to Turkey or Azerbaijan,” he said. “They later reach Russia. Therefore, everything is legal for the country from which the cargo is sent.”

What do we know about “Kairo Logistics”?

Its legal name is LLC “Service-Multi”. It also operates in Turkey, Europe, and the United Arab Emirates.

“Service-Multi” was registered in Moscow in 2018. Its director is Dmitry Mordvinov and the owner is Maxim Shepilov. Shepilov also owns another transportation company that imports cars into Russia and the Commonwealth of Independent States countries of Armenia, Azerbaijan, Belarus, Kazakhstan, and Tajikistan.

Before the pandemic, “Kairo Logistics” had a warehouse in a “Hualing Plaza” building in Tbilisi. Now they do not have an office or a warehouse at a specific address. The company publishes its service terms on its website and Facebook pages, and they take orders online. We also contacted the operator via WhatsApp.

The company does not hide on its website or Facebook page that it handles the transportation of sanctioned goods (screenshots from the website and Facebook).

Note: “Kairo Logistics” LLC, registered in Georgia in 2013, with website Kairos.ge, is another company and has no any connection with the above mentioned experiment.

Drones like the ones we sent to Samara are used to shoot high-quality, professional videos. This First Person View (FPV) model allows pilots to see the camera view in real-time. It has the same engine as “kamikaze drones” used in the Russia-Ukraine war since 2022.

Military and defense specialists explain that in modern warfare, even seemingly harmless drones used for filming landscapes have become significant military resources.

“They likely dismantle them and use the motors in FPV drones. Reassembly takes time, but it is not difficult. One person can assemble dozens of drones per day. If you understand electronics and can tighten bolts, you can assemble them with a screwdriver. It needs an axle, a camera, a “brain” and an antenna,” said a military journalist who asked to remain anonymous.

“Some drones are used to take wedding photos, while others have military purposes. I can confidently tell you that the drones reaching Russia will be used for military purposes. There is no doubt about it,” retired Colonel Lasha Beridze assures us. He was the Deputy Chief of the General Staff of the Armed Forces from 2011-2013 and led Georgia’s first peacekeeping contingent in Afghanistan in 2010 (Photo and screenshot of the drone from the experiment, downed Russian FPV drone).

“The civil purposes for FPV are sports flying, photo shooting, landscape, or geography studies. However, they can also be used for reconnaissance and monitoring enemy targets in war. The drone can serve both as an observation weapon and an attack weapon. It is easy to equip it as a guided missile,” said a cybersecurity specialist who asked to remain anonymous.

The Georgian Revenue Service claims that since the start of the war in Ukraine and the imposition of sanctions against Russia, customs control has been tightened. They state that from February 24, 2022, to June 27, 2024, they turned back sanctioned goods 1,969 times at customs checkpoints.

“All products listed by countries participating in the sanctions, as well as any customs operation (including export and re-export) that may involve sanctioned individuals or companies, are subject to special customs control to prevent the use of Georgia’s customs territory as a corridor for transporting sanctioned goods,” the Customs Department wrote to us on July 2.

But official statistics and our reporting indicate that sanctioned goods are passing through Georgia’s borders. Dual-use items are first sent from here to Armenia, Azerbaijan, and Central Asia, with the final destination being Russia.

Under Sanctions, How Does Russia Replenish Its Arsenal?

In 2014, in response to the annexation of Crimea, the European Council banned the export of dual-use items to Russia and issued a corresponding document. On February 25, 2022, new restrictions were added to this regulation.

The European Union, the USA, Japan, and the United Kingdom compiled a list of items highly prioritized for the battlefield, making it illegal to send them to Russia. This list has been updated several times and currently includes 50 named products.

According to the Georgia Revenue Service, dual-use items are products that can be used for both civilian and military purposes, as well as for the manufacture of biological, chemical or nuclear weapons, or explosives containing nuclear material.

Simply put, a dual-use item could be found in your kitchen or bathroom appliances and also in military weapons. One example is the “brains” of a washing machine or a refrigerator. This small part uses an electronic algorithm that executes commands. With the push of a button, we command the brain of a washing machine to wash or spin clothes, and it obeys. The same “brain” could be given a combat mission and, with the push of a button, drop a shell.

In June 2023, the US State Department identified five countries creating “sanctions evasion problems” for Russia. These countries are Georgia, Turkey, Kazakhstan, Armenia and the United Arab Emirates.

“There has been an increase in the import of critical electronics to Russia. For example, chips found in your dishwashers. Some of them were found on the battlefield in Ukraine, in the debris of Russian equipment…The transit of such items from Georgia has also increased, and we hope it will decrease in the future,” said Jim O’Brien on June 7, 2023, at a European Council on Foreign Relations (ECFR) meeting. O’Brien is now the Assistant Secretary of State for European and Eurasian Affairs at the US State Department. In 2022, he led the Office of Sanctions Coordination.

But the Georgian Revenue Service assures us of tightened border controls.

“Immediately after the start of the aggressive war in Ukraine, despite the significant increase in the movement of various goods/cargoes through the territory of Georgia, the Revenue Service has made a significant contribution to supporting the enforcement of international sanctions. From the very first days of the imposition of sanctions, it has consistently ensured strict control over the enforcement process. The visit of the US Ambassador once again confirms that the Revenue Service fully and firmly adheres to international sanctions enforcement procedures,” reads a statement from the Revenue Service published on April 13, 2024, following a meeting between US Ambassador Robin Dunnigan and Revenue Service head Levan Kakava.

“Georgia fully and firmly adheres to the procedures for enforcing international sanctions, and there is not a single piece of evidence to the contrary. From the very first days of the imposition of international sanctions, a relevant working group was established within the Revenue Service of the Ministry of Finance of Georgia, which carries out centralized control over the enforcement of these sanctions,” we were informed by the Revenue Service on July 26, 2024.

Now, we will tell you about the very “evidence to the contrary.”

What Do Export Statistics of Dual-Use Items Tell Us?

Since the start of the war in Ukraine, Georgia has frequently been labeled as Russia’s “lifeline” and a participant in the scheme of trading sanctioned goods.

In June 2023, a journalist asked O’Brien which countries he was referring to when discussing sanctions evasion. “This is a real problem, and that’s why I often travel to Kazakhstan, Georgia and Armenia,” O’Brien replied.

“During the first nine months of 2023, Turkey sent products worth $158 million to Russia and five post-Soviet countries suspected of acting as intermediaries for Russia,” reported the British Financial Times on November 27, 2023.

We decided to find the basis of these allegations in official statistics and analyzed foreign trade data.

We found that sanctioned cargo from Georgia reaches Russia either via a short route or indirectly through longer routes crossing two or three national borders.

We examined the export, import and re-export of all 50 sanctioned products. When we showed the list of these items to programmer and physicist Ucha Abashidze, he told us:

“From the products listed under these codes, the following military equipment can be made: FPV drones, ‘Lancets’ (kamikaze drones), aircraft electronics, electronics for any modern armored vehicle; targeting, calculation, and navigation tools; radio receivers and transmitters, stationary observation systems, remotely controlled mines.”

We interviewed Abashidze in September 2023. On May 9, 2024, he was arrested and charged with illegal acquisition and storage of private life secrets and illegal purchase and storage of firearms and ammunition. He is still in pre-trial detention. We contacted him through his lawyer, Shota Tutberidze, and Abashidze agreed to the publication of his statement.

According to official statistics, in 2023 and 2024 Georgia exported dual-use items worth $10.7 million to Russia, Armenia, Azerbaijan and Central Asia.

We analyzed foreign trade data. The statistics show that Georgia remains a critical transit point for dual-use items which can be utilized in both civilian and military capacities.

From the list of sanctioned items, we have identified five products whose exports to neighboring Azerbaijan, Armenia and Central Asian countries has noticeably increased since 2023. These are:

1. Radio Navigation Equipment (Satellite/GPS Devices)
2. Integrated Circuits, Controllers (Computer Processors and Joysticks)
3. Television, Digital, and Recording Video Cameras
4. Digital Data Processing Blocks (Internet Modems, Routers)
5. Devices for Receiving, Transmitting and Converting Sound, Image or Other Data (Tape Recorders, Microphones, Mixing Consoles)

Radio Navigation Equipment

This includes GPS receivers or mobile phone-like devices that work without the internet, showing maps and routes via coordinates. Hikers use these in the mountains to find their way.

“Of course, this equipment can also be used for military purposes. Military GPS has strong protection, making it hard to jam or disable, but if you don’t have that, you can even use a civilian GPS,” retired Colonel Lasha Beridze told us.

Documentary footage from the Russia-Ukraine war shows Russian aircraft equipped with ordinary civilian navigation systems. British and Ukrainian publications, citing defense departments, report that in the summer of 2022, American Garmin brand civilian GPS devices were found on downed Su-34 aircraft in Ukraine. This fact was also revealed during the interrogation of captured Russian pilot Andrei Fedurchukov.

“You can load applications into Garmin’s navigation device, such as a ballistic calculator (which measures bullet direction, distance, and speed),” a military journalist explained to us anonymously.

In 2023, the import of radio navigation equipment into Georgia increased by 41 percent compared to 2021, and exports grew by 213 percent.

In 2023, these sanctioned products were exported from Georgia to Azerbaijan, with a total value of $304,520.

From 2017 to 2024, the export of radio navigation equipment has never been on such a large scale. While we traded this product in the past, it was in much smaller quantities. You can find the relevant statistics here.

Electronic Integrated Circuits – Processors and Controllers

The international trade code for these products is 854231, which includes several small electronic components. We asked specialists to explain their purposes. They clarified that an integrated circuit includes a computer processor that can control robotic military equipment, aim weapons, conduct surveillance, and collect information.

“This code includes microcontrollers used directly to control military equipment, allowing you to program direction and assign specific functions. These components are so small that, roughly speaking, you could fit several hundred thousand dollars’ worth in a shoebox,” explained Giorgi Kurulashvili, Director of Research and Development at the British IT manufacturing company “Cott Electronics”.

Georgia imports integrated circuits worth approximately $US2-to-3 million annually. Those figures have not increased since the start of the war in Ukraine, but the same cannot be said for exports.

In 2023, Georgia exported integrated circuits worth $US261,580 to other countries, the highest figure in history and a 36 percent increase compared to 2021.

In 2023, integrated circuits were exported from Georgia to nine countries: Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, Malta, the Netherlands, Turkey and Ukraine.

Uzbekistan is a completely new market. Georgia never had a history of trading integrated circuits with Uzbekistan, but in 2023, it exported integrated circuits worth $US36,720 there for the first time.

Georgia has previously exported integrated circuits to Armenia, but in much smaller quantities. In Kyrgyzstan, this is the highest figure in the last seven years. These are the numbers:

The UN International Trade Database (comtradeplus.un.org) confirms that Kyrgyzstan and Armenia send integrated circuits to Russia. In 2023 alone, Kyrgyzstan exported over $US3 million worth of integrated circuits to Russia. Armenia exported $US869,718 worth, which is 683 times more than in 2021.

Note: It is important to note that the comtradeplus.un.org database does not show that Uzbekistan and Azerbaijan sent sanctioned products to Russia in 2023. However, it should be noted that the UN collects this data from countries. It is possible that some countries did not provide their statistics honestly and on time. Therefore, we cannot be certain that the dual-use items sent from Georgia to Uzbekistan and Azerbaijan ultimately reached Russia.

Digital Data Processing Blocks

A typical example of such a device is an internet modem, which has a single casing with several compartments inside and plugs for cable input and output.

Physicist and programmer Abashidze explains that these are essential elements of modern digital electronics. They are found in laptops and PlayStation joysticks. They are also found in drones and tanks.

“For instance, (they) are in flight controllers and kamikaze drones (author’s note: Russia uses Shahed-136/131 type kamikaze drones in the war with Ukraine). They are also in the Arduino microcontroller used for educational purposes. With this, you can make a door lock, a drone, or a light switch for kids in school with the push of a button. In general, all modern weapons require Arduino, which I can extract from any electronics,” said Abashidze.

In 2023, this sanctioned item was exported to 15 countries in Europe, Asia and Africa. Two noteworthy destinations are Kyrgyzstan and Armenia.

In 2023, Georgia exported digital data processing blocks worth $US3 million to Armenia. The total from 2017 to 2022 was just $US644,210.

Georgia exported $US225,760 worth of such products to Kyrgyzstan in 2023. There was virtually no previous history of trading these products with Kyrgyzstan.

UN foreign trade data confirms that Kyrgyzstan and Armenia supply these dual-use products to Russia.

“Digital data processing blocks, such as modems, are used for communication. They can create communication infrastructure and networks useful in combat situations. Devices for receiving sound or images can also be used for communication, intelligence and surveillance,” explained a cybersecurity specialist who asked to remain anonymous.

Equipment for Receiving and Transmitting Sound/Images

This equipment is also dual-use and is included in the list of sanctioned products.

Exports from Georgia increased by 34 percent in 2023 compared to 2021. Imports to Georgia increased by 74 percent.

In 2023, sound/image receiving and transmitting equipment from Georgia was exported to 30 countries. Among them were neighboring countries Armenia and Azerbaijan as well as Central Asian countries. Notably, there was a sharp increase in exports to Kazakhstan and Azerbaijan.

These statistics suggest that Kazakhstan and Azerbaijan are supplying these dual-use products to Russia, hence the increased demand. We checked UN foreign trade statistics for verification. They confirm that since the start of the war in Ukraine, Kazakhstan and Azerbaijan have increased their exports of sound/image receiving and transmitting equipment to Russia.

We asked the Georgia National Statistics Office who is exporting sanctioned dual-use items to Russia or third countries. Citing confidentiality, they did not provide this information in full.

We were able to learn that in 2023, seven companies exported digital data processing blocks to Armenia. Also, in 2023, 16 companies exported sound/image receiving and transmitting equipment to Azerbaijan. Additionally, three companies exported to Kazakhstan. It turns out, that no one has restricted the export of dual-use items to the so-called third countries.

How Do Integrated Circuits Reach Russia? Experiment #2

After sending drones, we wanted to see if it was also easy to send integrated circuits to Russia. We chose two products: a computer processor and a hard drive.

We contacted five transportation companies via WhatsApp, asking them to transport processors and internal memory cards from Tbilisi to Samara. One carrier outright refused, saying: “We can’t arrange such cargo for anyone.”

In contrast, LLC “Cargo Rapido” readily agreed to transport the sanctioned items. We negotiated with operator Natalia to send 60 Intel processors and 30 HDD type internal memory cards. She told us that the cost to transport one kilogram of cargo to Samara was 15 lari ($US5), but that we would also need to pay “insurance” equal to 10% of the total value ($US2,300.)  

“By insurance, we mean this option, which means exporting the cargo without formal paperwork,” Natalia explained later.

After clarifying the price, we approached the delicate issue of sanctions. We told Natalia that we were worried about potential problems due to international bans. We mentioned that others had refused us and asked why they were willing to take such a risk.

She reassured us, saying everything would be handled unofficially:

“What others tell you is true. Sanctions and so on… this type of goods by law… (she didn’t finish). Regarding export, it will happen unofficially from Georgia and then to Russia, without export declarations or similar procedures. We have a company and will formalize the contract. However, the cargo description won’t be included. We’ll just state that we received such and such cargo from you, and the insurance is 10%… If I couldn’t transport it, I’d tell you directly. Since I’m explaining how we will do it, it means we will. The price includes all risks.”

The “Cargo Rapido” transportation route is Tbilisi-Vladikavkaz-Samara. It takes about four weeks to deliver the cargo to it final destination. What documents do we need to provide? None.

“I don’t need anything because this is done unofficially. The only thing is that we will sign a contract with an individual, and the payment will also be to an individual. To be clear, it can’t go through the company’s account…Why would you need customs clearance in Russia? We’re doing this unofficially,” Natalia said and sent us a sample contract.

LLC “Cargo Rapido” was registered in Georgia in 2020. Its director and owner is Russian citizen Taimuraz Tokazov, originally from North Ossetia. The company’s office is located on the first floor of a residential building at 5 Zakariadze Street in Saburtalo.

“It’s been here for about 5-6 months, maybe more… They send and receive packages… Two or three clients come daily,” an employee at a neighboring “Yandex” office said, adding that Tokazov only comes when customers call to send cargo.

We called with the same intention. Tokazov answered Natalia’s number, and we told him we wanted to send cargo to Russia. Tokazov scheduled a meeting at his office in three hours.

When we arrived, we revealed that we were journalists and had questions for him. Tokazov became confused and refused the interview, citing lack of knowledge of the Georgian language. This was surprising since he had been speaking clearly to us before. He then made another excuse, saying he was in a hurry to pick up his children from kindergarten.

When we asked if he was transporting cargo to Russia, he denied it, immediately turned off the lights, started locking up the office, and quickly headed to his car. We followed, asking about the illegal transportation of sanctioned cargo, but he remained silent.

What Does Georgian Law Say About the Export of Dual-Use Items?

Is it easy to export dual-use items from Georgia? According to regulations, it should not be. Special permits are required.

According to a 2014 government decree, there is a list of military and dual-use items that includes nine categories of products, such as electronics, computers, nuclear materials, navigation, and communication systems.

If you want to export, import, or transit these items, you need to apply for a permit from the Revenue Service. The Non-Tariff Control Division of the Customs Department will provide a final response on the permit within 20 days.

1. Initial Contact: Before submitting an official application, you contact the Revenue Service and explain what you want to export and the intended final use.
2. Application Submission: You fill out an application specifying the product name, value, quantity, origin, and import/export destination.
3. Final User Information: You are also required to provide information on who will ultimately use the item and whether it could potentially be used for military purposes.

The Revenue Service informed us that because details are verified in advance, from 2020 to May 22 of 2024, all 649 applications received were approved. Among these, 67 permits were issued for the export of network equipment.

Network equipment includes devices for receiving, transmitting, and converting sound, image, or other data. In 2023-2024, after sanctions were imposed on the export of this dual-use product to Russia, the Georgian Revenue Service issued 63 permits for its export/re-export to other countries.

In theory, the export, import, or transit of dual-use items should also be checked at the border. Vehicles are first inspected by a quick scanner and then by a customs officer at the checkpoint.

We wanted to know exactly what information the border-installed scanners can detect, but the Revenue Service did not answer this question. They said providing this information could put customs procedures at risk.

If border officers suspect a violation in a cargo transfer, they begin a detailed check of the documents, inspect the goods and/or the vehicle, and the individual involved. If a violation is identified, a violation report is drawn up and the materials are sent for investigation.

In the fall of 2023, we visited the Sadakhlo and Larsi checkpoints to observe how light vehicles were inspected in Georgia. Here is what we observed:

• The customs officer inspects the trunk, front and rear seats, and all four doors of the vehicle.
• The driver is then allowed to proceed to where their documents are checked. This process takes about 2-3 minutes.
• There are also dogs at the border that can be used to check the cargo.

This is the framework in place to control the export of dual-use items. However, actual enforcement and thoroughness of these checks can vary, as seen in our findings.

The Story of “Elektromek-BT” and “Lazika Import”

How Georgian Companies Assist Russia

In a journalistic investigation published by Lithuanian media in May 2024, it was stated that the Lithuanian transportation company “Delamode Baltics” was allegedly transporting sanctioned cargo to Russia through Georgia.

Analyzing the international trade database “Import Genius,” we found that the Georgian company “Elektromek-BT” was assisting “Delamode Baltics” in transporting sanctioned cargo to Russia. “Elektromek-BT” was registered on June 19, 2021. The company’s director and owner is Mari Sarapiani, and its official primary activity is listed as construction.

From July to October 2023, this company participated 365 times in the transportation of sanctioned dual-use items to Russia. Sometimes they transported the cargo themselves, while other times they assisted others. During this period, more than $24 million worth of sanctioned products were sent to Russia through “Elektromek-BT,” including ball and cylindrical roller bearings, electronic equipment, plugs, sockets and other items.

Since December 2022, Mari Sarapiani has owned another transportation company, “Lazika Import.” We also found this company in the “Import Genius” database. In 2023, “Lazika Import” was involved in sending $29 million worth of sanctioned cargo to Russia.

Sarapiani confirmed that she heads these two companies. However, upon learning that we were journalists wanting to interview her, she declined, citing lack of time. Despite our attempts to ask questions, she defended herself by saying her companies had not been operational for a year and then hung up. We called her again, and this time she said, “Don’t bother me; I’m a 62-year-old woman with heart problems and now I’m busy. Call me in two days,” and hung up again. When we called two days later, she said, “I have neither the opportunity nor the desire to talk to you.”

Sarapiani’s claim that the companies are not operational is false. Both companies are active in the taxpayer registry of the Revenue Service.

“Import Genius” is an international database created in Arizona, USA, that collects official trade data from countries in Europe, Asia and the Americas. Through this database, we found two more Georgian companies involved in sending sanctioned cargo to Russia.

On August 24, 2023, LLC “Face Plus” sent sound/image receiving and transmitting equipment worth US$40,000 to the Russian company “Emmas” in the Rostov region in collaboration with a Polish company. “Face Plus” is not found in the public registry under this name. We only know that “Face Plus” is located at 264 Omar Khizanishvili Street, Tbilisi, which is inside the Tbilisi Free Industrial Zone.

In January-February 2023, the Russian company “Khort Trade” in St. Petersburg received three shipments of dual-use cargo, including printed circuits, static converters, and plugs. These sanctioned products were sent to Russia by LLC “Astery Group” and the carrier was the Latvian company “Ultra Trade Service.” “Astery Group” has been registered in Tbilisi since May 2022. Its director and owner is Vladimir Sapozhnikov, a Latvian citizen, who is also a board member of “Ultra Trade Service.”

Household Appliances Sent to Russia Also End Up in the War

iFact spoke to experienced individuals in the military industry, former and current military personnel, former high-ranking officials of the Ministry of Defense, and an international analyst on economic sanctions.

All agree that assembling combat weapons in modern warfare no longer requires extensive expertise. Parts useful for weaponry are found in items we use daily, like laptops or smartphones.

“Practically every Russian drone and military missile has a component that is, for example, used in a refrigerator. Simply put, the iron you have at home can be given to someone in Russia who might use it to kill Ukrainians. It might sound exaggerated, but this is the dimension of these dual-use products,” said Giorgi Shaishmelashvili, an analyst at “Civil Idea”.

Since the full-scale invasion of Ukraine, the export of refrigerators, dishwashers, and washing machines from Georgia has significantly increased to the following countries: Russia, Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan and Uzbekistan.

In 2023, washing machines worth US$286,660 and dishwashers worth US$41,390 were directly exported from Georgia to Russia.

“I know for a fact that the drum motor of a washing machine can be used in unmanned military vehicles — ‘copters’ — to rotate the rotor. When you no longer have military-grade parts, you use what you have. There’s no other way, and that’s why… Military-grade items are so expensive that you can now buy five washing machines for the same price. It’s not a problem; you take what you need and discard the rest,” explained retired Colonel Beridze.

Programmer and physicist Abashidze also said it is relatively easy to dismantle household appliances and repurpose their parts for military weapons. He said the same chip can be found in a phone, a washing machine, and a military drone.

“I can find the ‘brain’ of any modern television and reprogram it to become the ‘brain’ of a drone. People think military technologies are out of this world and unknown to us, but times have changed. Once, a Javelin missile system was something amazing, but now even my 14-year-old could make one based on this scheme (shows an ‘Arduino’). It won’t be high-quality or reliable, but if the war is in a stage of attrition, anything can be used.

“Russians, as it turns out recently (in the Ukraine war), have been using civilian semiconductors (chips) that are available for regular sale. This means that the semiconductor could be in a washing machine or a coffee machine,” said Giorgi Kurulashvili, Director of Research and Development at the British IT manufacturing company “Cott Electronics”.

What is Tantalum and How is it Used on the Battlefield?

“Tantalum capacitors are essential for assembling electronics. By themselves, they aren’t much —they’re small — but even if you have chips and everything else, without tantalum, nothing works,” explained Abashidze.

Tantalum capacitors are crucial components in electronic devices, storing positive and negative electric charges. Russian military forces use them to manufacture shells.

After the start of the war in Ukraine, in November 2022, 710 kilograms of tantalum valued at $2,400 were re-exported from Georgia to Armenia. This was an unprecedented event, as this product had rarely been exported anywhere before—only once in 2018, when $160 worth of tantalum was exported to Bangladesh.

In the “Import Genius” international trade database, we found that from October to December 2023, this sanctioned product reached Russia from Georgia. Tantalum capacitors worth $12,800 moved from China to Russia through Georgia. These transactions are not reflected in the foreign trade portal of the Georgian Statistics Office.

“Russia needs tantalum the most for manufacturing shells. Such shells can be made with copper as well, but they are four to five times less effective. Tantalum is the best. We know that Russians have problems obtaining tantalum, and by all logic, their supplies should be running out,” military analyst Koba Naroushvili told us.

When asked if it made logical sense for Armenia to have such a high demand for tantalum, Naroushvili responded: “Armenia itself does not produce high-tech, tantalum-based shells. They haven’t mastered this technology. It’s easier for them to buy ready-made shells.”

What is the Solution? Learning from Lithuania’s Experience

In April 2024, Lithuanian investigative media outlet LRT.lt published an article detailing how a Lithuanian company was transporting sanctioned dual-use products to Russia. According to information LRT.lt gathered, since the start of the war in Ukraine, €130 million worth of dual-use products had been transported from Lithuania to Russia, with Kazakhstan, Kyrgyzstan, and Uzbekistan serving as transit countries.

Based on that journalistic investigation, Lithuanian law enforcement agencies launched an investigation in May 2024 and soon identified four suspects. The investigation is ongoing.

We spoke with Ruta Jukneviciute, the author of the article, and asked her to provide more details on the measures the Lithuanian government took to fill the “black hole” they uncovered. According to Jukneviciute, after the war in Ukraine began, import-export control in Lithuania became lax, and companies continued to supply Russia with sanctioned items through third countries like Kazakhstan and Uzbekistan.

“Lithuania took steps to tighten export restrictions by imposing national sanctions on high-priority battlefield items. Additionally, the land transit of such products through Lithuania was banned. So far, this has not affected maritime shipments,” Jukneviciute said.

Following the Lithuanian media’s investigative report, the Lithuanian government banned the export of dual-use items not only to Russia but also to non-EU countries.

Nino Evgenidze, Executive Director of the Economic Policy Research Center, in Georgia believes that the uncontrolled situation will be regulated only when Georgia imposes independent internal restrictions in addition to international bans.

“If you arrest the head of a transport company and ask why they are transporting drones (via a third country) to Russia, you can’t take any legal action against them because there is no law restricting this right… The state facilitates this. What’s the problem? They should take those international databases with lists of prohibited products and issue a decree… These data are very damaging to our reputation and will result in a loss of trust in us as a country,” Evgenidze said.

Maximilian Hess is a political risk and sanctions analyst working at the British Foreign Policy Research Institute and author of the book “Economic War,” which deals with the Ukraine war and sanctions against Russia.

“At the very least, if the government sincerely claims to enforce sanctions and does not want to become a violator country, the best way would be to publish a separate list of high-priority battlefield items and issue additional restrictions on their export. Practically, this means requiring exporters to clarify the final destination of the cargo. This is necessary to avoid the prohibited goods from reaching Russia through Georgia,” Hess said.

A week before the publication of the article, we approached the Revenue Service to arrange an interview. The press office promised us to send the questions via email and they would “select the appropriate respondent.” However, after two days, we only received a general written response. There is still no agreement for an interview.

They acted similarly in February when iFact exposed the scheme of supplying sanctioned cars from Russia and had critical questions for the Revenue Service. Even then, they did not respond promptly or to a high standard. After the article was published, they accused us of spreading disinformation against the country.

• Investigations

Russia’s “Auto Heaven”

February 13, 2024

Author:ია ასათიანი

Our gathered facts confirm that Georgia is a link in the chain of Russia’s military supply. Therefore, we were interested in how the Revenue Service controls the situation, what they consider to be the solution to prevent sanctioned goods from reaching Russia through so-called third countries, or whether they intend to investigate the facts revealed by our investigation.

The Revenue Service again gave us a superficial response. There is no sign of their vision for a solution to the problem. We present the unchanged written response of July 26 at the link.

Contributors to the article:  Ia Aasatiani (Interviewer) Nanuka Bregadze (Interviewer); Robi Zaridze (Videographer); Nino Gagua (Designer) and Manana Ghoghoberidze (Editor)

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