Moscow has blacklisted Daimler Truck, a key supplier to the German military, banning transactions and contracts with the manufacturer

Russia has imposed sanctions on German truck manufacturer Daimler Truck, which is a key supplier to the German military and formerly a strategic partner of Russian vehicle giant KamAZ.

The measures were announced in a government decree issued last week. Daimler Truck had been a strategic partner to KamAZ since 2008, holding a 15% stake and co-owning a joint venture that produced cab frames for heavy-duty vehicles.

The German company, which is the world's largest truck maker, became the 33rd entity added to Russia's sanctions list since May 2022 in response to Western restrictions imposed over the Ukraine conflict.   

Under the sanctions, Russian individuals and entities are prohibited from conducting business with the listed companies, including fulfilling existing contracts or carrying out financial transactions that benefit them. However, the government may grant temporary exemptions for specific deals on a case-by-case basis.

In March 2022, following the escalation of hostilities in Ukraine, many German automakers, including Daimler Truck, suspended operations in Russia. While Daimler initially stopped short of a full market exit, the company eventually divested from local operations. The vacuum left by German manufacturers has since been filled largely by Chinese carmakers. Moscow has repeatedly denounced Western sanctions as unlawful and ineffective in isolating the Russian economy.

The company announced the suspension of its Russian operations three years ago. In February 2024, KamAZ CEO Sergey Kogogin confirmed that Daimler had sold its stake and had not participated in the company's activities since early 2022.

Daimler Truck is a key supplier to the German military, specifically through its Mercedes-Benz Special Trucks division, which provides a range of vehicles for military applications. A recent major order from the German armed forces (Bundeswehr) involves the supply of Mercedes-Benz Arocs logistics vehicles with all-wheel drive and special military equipment.

Moscow's sanctions come as German Chancellor Friedrich Merz adopts an increasingly hardline stance toward Russia. Since taking office, he has called for increased military support to Kiev and advocated allowing Ukraine to use long-range missiles without restrictions - including strikes deep into Russian territory.

The Kremlin has accused Berlin of escalating tensions and warned that such actions could draw Germany into a direct confrontation with Moscow.