German building firm Knauf denies trade with Russia

The German gypsum manufacturer Knauf said on Friday that it has not supplied goods to Russia nor has it exported goods from Russia since Russia started its war with Ukraine in February 2022.

A Knauf statement, which also said that the firm is not delivering any construction materials from the European Union to the Russian-occupied Ukrainian city of Mariupol, comes after a German public broadcaster reported that journalists had discovered the name Knauf on sacks of plaster in Mariupol.

The report, in the ARD program Monitor, said that an authorized Knauf dealer had advertised that he had built a residential building project on behalf of the Russian Ministry of Defence using Knauf building materials.

A member of the conservative Christian Democratic Union (CDU) party in parliament, Roderich Kiesewetter, criticized Knauf and other companies, saying they are "cementing Russian power" there, according to the show.

Sanctions law expert Viktor Winkler told the Mainpost newspaper that he had so far seen "no violation of the applicable sanctions by Knauf" and therefore "expressly warned against a witch hunt."

On the internet portal Verfassungsblog.de, Winkler wrote that the outrage over the transactions was understandable, but the general astonishment over the gaping sanctions gap was not.

The EU's sanctions policy was a "patchwork quilt," with no recognizable standards or plan. Timber was sanctioned immediately. But "diamonds as an extremely important source of income for Russia only now. The import of steel is banned, exports are not," and there is chaos in gas, oil and liquefied natural gas (LNG). "The examples could be extended endlessly."

Knauf operates a plant near Kiev and 14 production facilities with 4,000 employees in Russia. The family-owned company condemns Russia's war against Ukraine and complies with all sanctions imposed on Russia by the EU, the United Kingdom and the United States.

"We reject in the strongest possible terms the accusation that we are not doing this," [complying with sanctions] the statement reads. Knauf produces building materials, but is not involved in construction projects as a builder or investor.

"Knauf does not have any direct supply contracts with consumers or processors of Knauf products in Russia. Our products reach end customers there via many different dealers who are independent of Knauf. We have no influence on how and where end customers use our products."

A spokeswoman for the German Economy Ministry said, "the relevant investigating authorities must now clarify the exact facts of the case very quickly."

These include the Customs Criminal Investigation Office and the public prosecutor's offices. A spokesman for the Foreign Ministry said rebuilding Mariupol, which was destroyed during the Russian full-scale invasion, serves Russia's propaganda. Anyone taking part in this must ask themselves whose they are actually working for.