Swiss-Linked Firm Maintains Western Machines at Russian Arms Plants
Leaked documents show Galika-Service maintained high-precision Western machinery for over 50 Russian defense firms, including Kalashnikov Concern.
Key points
- Leaked documents show Galika-Service maintained Western machinery for over 50 Russian defense companies, including Kalashnikov Concern.
- Contracts valued at nearly $3 million were signed with 87 Russian firms, with the defense sector accounting for 51 of these clients.
- The company sourced spare parts globally to keep German, Swiss, and Swedish machine tools operational in defiance of sanctions.
Internal documents obtained by the Kyiv Independent reveal that a Swiss-linked company has played a central role in maintaining Western industrial machinery within Russian defense facilities. The records indicate that Galika-Service, the Russian branch of Switzerland-based Galika AG, provided essential repair services and sourced replacement parts for high-precision equipment used to manufacture weapons deployed against Ukraine.
The investigation highlights that over 50 Russian defense enterprises rely on this single supplier to keep German, Swiss, and Swedish machine tools operational. Despite international sanctions aimed at disrupting Russia’s military production, the company continued to service critical assets for manufacturers of missiles, ammunition, and assault rifles, effectively preventing a breakdown in the country’s arms production capabilities.
Maintenance of Western Industrial Assets
The machinery in question was largely imported into Russia prior to the full-scale invasion, creating a dependency on specific consumables and spare parts that remain difficult to source domestically. According to the leaked files, Galika-Service coordinated the global procurement of these components, bypassing restrictions through complex customs schemes. This logistical support has allowed Russian factories to sustain the production of lethal systems, from guided missiles to combat vehicles, by keeping their existing Western equipment running.
Allen Maggard, a senior analyst at the Center for Advanced Defense Studies, noted that a significant volume of European machine tools entered Russia between 2014 and 2022. He emphasized that these assets are now embedded in the Russian military-industrial complex. Consequently, he argued that European policymakers must focus on restricting the flow of consumables that keep these already-imported tools functional, as this represents a critical vulnerability in the defense supply chain.
Contractual Links to Major Defense Firms
A detailed company document outlines contracts worth nearly three million dollars signed with 87 Russian entities between 2024 and late 2025. Fifty-one of these clients are directly involved in the defense sector. The Kalashnikov Concern, a major manufacturer of automatic firearms and drones, emerged as the largest client with agreements valued at approximately 800,000 dollars. The Imperial Tula Arms Factory, known for anti-tank systems and artillery rounds, was the second-largest client, with orders totaling 500,000 dollars for repairs to its Western-made tooling.
These financial relationships underscore the scale of the company’s involvement in the Russian military economy. The documents identify specific Russian employees responsible for managing these international sourcing operations. Despite the high-profile nature of its clients, the company has operated with a level of continuity that has allowed Russian arms factories to maintain production schedules, even as broader sanctions regimes have tightened around other aspects of the defense industry.
Legal Challenges and Operational Continuity
Lino Derungs, the Swiss national leading the Galika group, has faced significant legal hurdles during his time in Russia. He has been detained multiple times on charges related to his business practices, yet the company’s operations have continued unabated. According to the investigation, Derungs spent extended periods in Russia, navigating a complex legal landscape while maintaining the commercial infrastructure necessary to support the defense sector.
The persistence of these maintenance services raises questions about the effectiveness of current enforcement mechanisms against dual-use industrial equipment. As the war continues, the ability of Russian manufacturers to repair and upgrade their existing Western machinery remains a key factor in their sustainment capabilities. Observers will likely watch for further regulatory actions targeting the specific supply chains that enable this ongoing industrial support.
