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Despite publicly distancing itself from its Russian operations, Knauf continues to control its Russian subsidiaries, according to leaked documents.
A significant security breach has revealed alarming details about Russia’s rapidly growing nuclear weapons program, including major advances in hypersonic missile technology. Documents obtained and analyzed by German magazine Der Spiegel and Danish investigative outlet Danwatch show that Western companies—including the German gypsum manufacturer Knauf—are supplying materials used to expand Russia’s secretive nuclear weapons facilities.
The leaked files contain detailed blueprints and procurement lists from Russian military construction projects, offering rare insight into the infrastructure supporting Moscow’s nuclear arsenal. These documents specify materials such as cement, plaster, adhesives, insulation, and cladding, many of which come from Western firms. Knauf, headquartered in Iphofen, Bavaria, is a prominent supplier. Although the company has publicly distanced itself from its Russian business, the files reveal it still fully owns and controls its Russian subsidiaries.
One such subsidiary was once classified as “systemically important” to Vladimir Putin’s economy, highlighting its strategic role in supplying essential construction materials for Russia’s military buildup.
The documents detail construction work at the nuclear base near Yasnyj, including blueprints for watchtowers and military facilities. European military experts confirmed that some sites—including Yasnyj—are equipped with Russia’s Avangard system, a hypersonic glide vehicle capable of evading missile defenses through extreme maneuverability at high speeds.
This system is a key element of Moscow’s nuclear deterrent, deployed by intercontinental ballistic missiles.
Satellite images analyzed by Der Spiegel show these bases have been modernized with reinforced structures, upgraded defenses, and advanced sensor technology, using higher-grade materials than in the past. New missile silos, designed to hold approximately 900 strategic warheads, are better fortified and concealed.
A NATO security official told Der Spiegel, “Without this nuclear deterrent, Russian foreign policy would look very different,” implying Russia’s nuclear capabilities are central to its ability to wage the war in Ukraine.
Hans Kristensen, director of the Nuclear Information Project at the Federation of American Scientists, called the revelations “completely unprecedented, absolutely incredible.” He added that the documents allowed analysts to trace Russia’s systematic military buildup and clarify its modernization priorities.
The leaked procurement data also exposes how Russia circumvents Western sanctions. While direct shipments from Germany to Russian defense entities are prohibited, Russian buyers use intermediaries. For example, a small company in Yekaterinburg secured a contract to purchase Knauf plaster for the 368th regiment at Yasnyj.
Knauf responded to Der Spiegel by stating, “The management of the Knauf Group and the Knauf family condemn Russia’s war of aggression against Ukraine.” The company said its withdrawal from the Russian market is “well advanced” but confidential due to complex regulatory approvals. Knauf also claimed it has “received no profits from its Russian business” since announcing its exit.
Nonetheless, Knauf’s Russian subsidiaries remain wholly owned by the German parent company, and the Knauf brand and logo still appear widely on Russian construction projects, including military sites.
A company spokesperson explained that the Russian subsidiaries “produce and sell products almost exclusively through independent building material dealers” and do not control the final customers.
These revelations come amid growing concern over Russia’s expanding nuclear arsenal and the broader international implications of Moscow’s ongoing military modernization despite sanctions.
The investigation by Der Spiegel and Danwatch highlights the difficulty of enforcing sanctions and how Western goods continue to indirectly support Russia’s military infrastructure.
Knauf, whose family fortune is estimated at €11.8 billion and which reported €3.7 billion in revenue last year, has faced scrutiny over its Kremlin ties. Nikolaus Knauf, the company’s patriarch, served for years as Russia’s honorary consul in Nuremberg.
The breach is likely to increase pressure on European governments to tighten controls and reassess the extent to which Western industry remains entangled with Russia’s war efforts.
In a statement to Express.co.uk, a Knauf spokesman said:
“We reject the accusations made against Knauf by Der Spiegel in its May 28 report. The management and family condemn Russia’s war of aggression against Ukraine and firmly deny any direct or indirect support for this war or Russian military armament. In particular, we reject the claim that Knauf knowingly supports nuclear weapons base construction or operation through product deliveries.
Knauf manufactures building materials worldwide for a range of civilian uses and these products are neither intended nor suitable for weapons systems.
Knauf has no contracts with the Russian Ministry of Defense or its subordinate authorities and does not sell or supply to such entities.
The Russian subsidiaries sell products mostly through independent dealers without control over their customer relationships.
We strongly reject accusations that Knauf assists Russia in circumventing sanctions. Since the war began, we have strictly complied with all laws and sanctions.”
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