War in Ukraine: German companies allegedly participated in the Russian “reconstruction” of Mariupol

Two German construction companies are involved in projects initiated by Russian authorities in the Ukrainian city of Mariupol, which was virtually destroyed when it was captured by Moscow in the spring of 2022, according to a German press investigation. The materials for these projects are supplied by the Knauf group, presented as a world leader in the production of plasterboard, and WKB Systems, which produces cellular concrete, according to a Monitor investigation scheduled for Thursday evening on public television channel ARD.

The magazine says it has analyzed numerous images of construction sites where Knauf logos appear and detailed activity reports documenting the manufacturer’s activities in the major port city, located in eastern Ukraine and a target of Russian troops, since the first day of the invasion in February. December 24, 2022 and fell under their control after more than two months of siege, at the cost of tens of thousands of deaths and almost complete destruction.

The magazine also quotes “the official distributor of Knauf, which is promoting the project of a residential building in Mariupol, built using Knauf products on behalf of the Russian Ministry of Defense.”

According to the magazine, products from WKB Systems, whose main shareholder is Russian businessman Viktor Budarin, were also discovered at Mariupol construction sites.

In a statement sent to AFP, the Knauf group says it “complies with all EU, UK and US sanctions against Russia.” The Bavarian group, which has a strong presence in Russia with 14 production sites and 4,000 employees, explains that it has “decided to remain on the Russian market until further notice,” citing “its responsibility” to local employees.

The company’s patriarch, Nikolaus Knauf, served as honorary consul of Russia for more than two decades. He retained this position even after the annexation of Crimea, reports the Tagesschau television news produced by ARD.

Many Western companies, including large German groups, stopped and sometimes sold their activities in Russia after the invasion of Ukraine. After the conquest of Mariupol, Russia presented a plan to rebuild the city, which had more than 400,000 inhabitants before the military offensive.

“Determine whether a sanctions violation has occurred”

This is the so-called reconstruction serves only Russian propaganda,” the German Foreign Ministry told AFP when asked about the alleged involvement of German companies at construction sites. “Any company that is involved in this must ask themselves who they are serving,” the ministry added.

The German Economic Ministry told AFP that “the competent investigative authorities (customs judicial police, prosecutors) must quickly clarify the facts and determine whether there has been a violation of sanctions.”