Exports to Russia increased 8.5 times: NACP includes leading Chinese oil and gas equipment manufacturer to list of international war sponsors

15.06.2023

China's largest oil and gas equipment research, development and manufacturing industrial group, Kerui has been listed as international war sponsors by the National Agency on Corruption Prevention (NACP). The decision was caused by the fact that the company not only continued to supply its products to the Russian Federation after the full-scale invasion, but also strengthened cooperation with the aggressor state, in particular, increasing export volumes in 2022 by almost 8.5 times. Kerui Group occupies a leading position in the global market of oil and gas equipment manufacturers. The company's production bases cover a total area of 2.4 million square meters, with Kerui products being supplied to oil and gas fields in more than 80 countries and regions around the world. The company's clients include such global brands as Saudi Aramco, Shell and others. Kerui has been operating in Russia since 1999, but began to significantly expand its presence in 2014, after the introduction of the first bans on the supply of Western oil and gas equipment. In April 2015, Kerui even announced its readiness to start supplying equipment to the annexed Crimea. The Russian clients of Kerui include such giants of the oil and gas industry as sanctioned Gazprom and Lukoil. In June 2016, during the visit of Russian President Vladimir Putin to China, Kerui signed a memorandum of strategic cooperation with Rosneft. After the full-scale invasion of the Russian Federation into Ukraine, the volume of deliveries of Kerui to the Russian Federation increased 8.5 times and reached 5,500 thousand tons of products. Moreover, in October 2022, an agreement on cooperation and strategic partnership was signed between the official representative of Kerui in the Russian Federation and Gazprom Bureniye LLC. Representatives of the Russian industry recognize the important role of Kerui Group for the Russian oil and gas sector and emphasize the company's contribution to the import substitution process in the Russian Federation. It is worth reminding that inclusion in the list of international sponsors of war is a powerful reputational tool. All listed companies are included in the World-Check database, a database of high-risk individuals and organizations used worldwide to identify and manage financial, regulatory, and reputational risks. In this way, interaction with the World-Check database helps to protect the international financial sector from sponsors of the Russian war, cooperation with which is dangerous for socially responsible businesses. The role of NACP in sanctions policy is defined in the Individual Sanctions Roadmap developed by the Stanford International Working Group on Russian Sanctions.