A Kyiv Independent investigation has documented that at least one American and six European manufacturers continue to operate in Russia's Alabuga Special Economic Zone — the country's principal site for producing Shahed long-range attack drones used in nightly strikes against Ukrainian civilian infrastructure. Their Alabuga-based subsidiaries paid over $34 million in taxes to the Russian budget last year.
"The EU obliged its companies to exit this special economic zone by 25 January 2026. Some exceptions allow for the trade of oil, gas and metals, as well as activities necessary for humanitarian purposes. However, companies that do not fall under these exceptions must leave the zone,” writes Roman Steblivsky, Director of Policy and Advocacy at the Economic Security Council of Ukraine (ESCU), for the Kyiv Independent.
The investigation identified Germany's Knauf, SARIA and RMA, Belgium's Drylock Technologies, France's Saint-Gobain, Switzerland's EFTEC AG, and U.S.-based Allied Mineral Products as still operating in Alabuga. Production of ceilings, automotive polymers and glass does not qualify for the EU's narrow exceptions — meaning these companies have effectively ignored the exit deadline. Steblivskyi also pointed to a loophole in U.S. sanctions, where Western companies are unlikely to have documented financial relationships with the SEZ's sanctioned management entity, allowing them to remain residents while staying formally clear of designated counterparties.
Read the full investigation on the Kyiv Independent.
ESCU is partnering with investigative journalists from OCCRP network drawing on evidence exposed by reporting on crime and corruption to strengthen compliance with international sanctions regimes.