The Ministry of Defense of the Russian Federation purchased Chinese all-terrain vehicles manufactured by Shandong Odes Industry Co., Ltd. for the needs of its army. In addition, this Chinese company continues to actively supply other vehicles to Russia and pay hundreds of thousands of dollars to the aggressor's budget.
This was the basis for the National Agency on Corruption Prevention (NACP) to add the leading manufacturer of all-terrain vehicles, Shandong Odes Industry Co., Ltd. (Aodes), to the list of international sponsors of the war.
The company is headquartered in Shandong, People's Republic of China (PRC). The Aodes brand is also registered in the United States and includes a full range of all-terrain vehicle manufacturing, service, and sales, with research and development teams in the United States, Europe, and China.
Shandong Odes has been supplying its products to Russia since 2021. The official distributor of Aodes in Russia is Mercury-DV LLC. In 2022 alone, it paid taxes to the aggressor's budget of more than USD 797 thousand.
The Russian representative office of Aodes consists of more than 60 dealerships that sell and service ATVs, all-terrain vehicles, and golf carts of its own production.
Aodes continues to be an active participant in import and export operations with the terrorist state. In particular, in the period from February 24, 2022, to July 31, 2023, the company imported goods worth more than USD 16 million. These purchases included ATVs, spare parts for their repair and maintenance, and inflatable boats.
In March and April 2023, the company shipped 137 Desertcross vehicles to Russia for more than USD 1.5 million. The main buyer was the Russian motorsport company Formula 7/Formula D. In the period from October 2022 to August 2023, China's Shandong Odes exported spare parts for ATVs and all-terrain vehicles totaling more than USD 19 million.
Nevertheless, Aodes products can be used as equipment for outdoor activities or sports. For instance, in 2023, the Russian Ministry of Defense purchased Chinese Desertcross 1000-3 all-terrain vehicles for the needs of its army. As of mid-November 2023, the enemy already had 537 units of Desertcross 1000-3, and by the end of March 2024, another 1,590 units with "additional options" are to be purchased.
These vehicles have been assigned to special forces units for the transportation of ammunition and other cargo weighing up to 550 kg, as well as for sanitary and evacuation tasks.
Recently released footage by the Ukrainian military confirms the destruction of two Chinese-made Desertcross 1000-3 all-terrain vehicles (ATVs) near the village of Krynky in the temporarily occupied territories of the Kherson region.
Shandong Odes Industry, through its distributors Mercury-DV LLC and Formula D LLC, provides technological capabilities to the aggressor country and actively supports Russia's economy and military machine. There have been no attempts by the company's management to condemn Russia's war against Ukraine.
As a reminder, the NACP is the body responsible for promoting the development of a compliance system in the private sector. During compliance procedures, counterparties are subject to integrity checks, including compliance with socially responsible business practices in accordance with OECD standards. The list of "International Sponsors of War" on the War and Sanctions portal is a powerful reputational tool for achieving the integrity of supply chains in the international dimension, for international businesses to leave Russia, and thus for reducing the financial and technological capacity of the terrorist country to kill Ukrainians. One of the platform's "levers of pressure" is cooperation with the World-Check database, which is used by banks and insurance companies to assess risks. That is why, for global companies, the consequences of being on the list are worse than continuing to do business with the aggressor country.
