British Engineering Giant Smiths Group Accused of Financing the Russian War Machine

Smiths Group plc, a British engineering company with more than a century of history, is under fire for continuing its activities in Russia’s energy sector, a major factor in Russia’s military aggression against Ukraine.

This is reported by a Brussels newspaper EU reporterRecent documents from the Russian Register of Legal Entities, dated May 30, 2024, show that Smiths Group plc, through its subsidiary John Crane UK, still holds a 50% stake in Russia-based John Crane Iskra LLC.

This Russian company produces specialized parts for engines and compressors and supplies major customers such as state gas producer Gazprom and Russia’s largest independent oil producer Lukoil. Many of these clients are subject to British, European and American sanctions. Shockingly, John Crane Iskra LLC is registered at the same address as the EU-designated JSC Research and Production Association “ISKRA”, a major supplier of equipment for the Russian fuel and energy sector, writes EU Reporter’s Louis Auge.

In 2023, ISKRA’s revenues shot up nearly 30% to over $70 million, a staggering increase amid Russia’s ongoing invasion of Ukraine. Meanwhile, John Crane Iskra LLC – a major contractor for ISKRA – saw its revenues more than double from $10 million to $22 million, according to EU Reporter.

The consequences of this financial growth are very disturbing, writes EU Reporter. The taxes paid by John Crane Iskra LLC, half owned by Smiths Group, contribute directly to Russia’s budget, effectively supporting military activities in Ukraine.

In simpler terms, it appears that a British company is not only continuing its activities in the Russian energy sector – a crucial factor in Russia’s military aggression against Ukraine – but also financing the war through its subsidiary’s tax payments, Brussels Outlet concludes.

A financial time research The report, published in May, also exposed the surprising extent of Western companies’ presence in Russia, despite loud condemnations and sanctions following the invasion of Ukraine. Among the companies that still have a presence in Russia are BP, TotalEnergies, P&G, Reckitt, Unilever, PepsiCo and many more.