China as the invisible donor of Russia’s military-industrial complex: How Beijing helps the Kremlin bypass sanctions

China as the invisible donor of Russia’s military-industrial complex: How Beijing helps the Kremlin bypass sanctions

Olha Konsevych

Chinese companies have become an important source of cellulose and nitrocellulose for Russia as it ramps up smokeless powder production. 

Against the backdrop of increased artillery shell production in Russia as part of its war of attrition (according to the British think tank RUSI, up to 250,000 units per month), the demand for nitrocellulose — a key component in smokeless powder production — has grown.

Nitrocellulose accounts for up to 60% of the mass of smokeless powder, and cellulose with at least 12.2% nitrogen content is considered suitable for powder production.

“Over the past three years, Chinese companies — acting directly and through intermediaries — have become a key source of nitrocellulose for Russia. This has enabled increased production of 152mm and 122mm artillery ammunition. Without addressing the issue of raw material supplies from China through joint pressure by European countries and the U.S. on Beijing, it is hard to imagine ending the war on terms favorable to Ukraine.”

Companies at the Kremlin’s service

Among the Chinese companies identified as exporters of nitrocellulose and cellulose to Russia are: Hubei, Jinhanjang Refined Cotton LTD, Hengshui Yuanchem Trading Limited, and Hengshui Heshuo Cellulose LTD.

Specific shipments from these companies to the Kazan Powder Plant were recorded between July 2023 and March 2024, totaling 24.4 tons. The last two companies (Hengshui Yuanchem Trading Limited and Hengshui Heshuo Cellulose LTD) are already under U.S. sanctions for supplying dual-use goods to Russia.

In reality, Russian import-export statistics from 2022–2024 show significantly higher volumes of shipments from the Chinese company Hengshui Yuanchem Trading Limited.

From July 2022 to April 2024 (the period for which data is available), this Chinese company supplied Russia with up to 1,300 tons of cellulose and nitrocellulose — the equivalent of roughly 200,000 rounds of 152mm caliber artillery shells. In certain cases, shipments from Hengshui Yuanchem Trading Limited involved Russian intermediary companies such as LLC PTK Gangut and LLC Print Color. The latter is under U.S. sanctions for its intermediary activities.

Another Chinese company involved in supplies to Russia is NORTH CHEMICAL INDUSTRIES CO., LTD. Notably, this company is affiliated with one of China’s major artillery ammunition producers — NORINCO. In the first quarter of 2024 alone, Russia received 57.6 tons of nitrocellulose from this Chinese company through the Russian firm LLC Grinavey.

Similarly, the Chinese company “ROKEM HONGKONG LTD.” shipped up to 3 tons of nitrocellulose in the first quarter of 2024. The previously mentioned Hengshui Heshuo Cellulose LTD delivered nearly 144 tons of nitrocellulose to Russia from October 2022 to April 2023.

Russian intermediaries: Their role in fueling the war

At the end of 2024, despite U.S. sanctions, two Russian defense industry enterprises (the Perm Powder Plant and the Solikamsk “Ural” Plant) expressed interest in cotton cellulose and cellulose acetate from the Chinese company Sichuan Push Acetati. Tests on the suitability of the products yielded mixed results: the Perm plant deemed the materials unsuitable, while the Ural plant approved them. No further information on the outcome is currently available.

Thus, over the past three years, Chinese companies — acting directly and through intermediaries — have become a key source of nitrocellulose for Russia. This has enabled increased production of 152mm and 122mm artillery ammunition. Without addressing the issue of raw material supplies from China through joint pressure by European countries and the U.S. on Beijing, it is hard to imagine ending the war on terms favorable to Ukraine.

Olha Konsevych: Journalist, researcher | Vital Voices | GMF | WZB Berlin | Max Planck Society alumna || Mahabahu Correspondent

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