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Belgian firm Drylock continues Russian operations despite sanctions deadline

Created at 8 Aug · 5:40 PM1 source↑ Market-relevant
IN SHORT

Belgian hygiene products manufacturer Drylock Technologies is continuing operations in Russia's Alabuga Special Economic Zone, a key drone production site, past the EU-mandated exit deadline of January 25, 2026. The company is seeking an exception from the Belgian government, which has not yet granted any such derogations.

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Key Numbers

January 25, 2026EU exit deadline for Alabuga zone

Who's Involved

Drylock Technologies
Belgian hygiene products manufacturer operating in Russia's Alabuga zone
Belgian Federal Public Service Economy (FPS Economy)
Government body assessing derogation requests for companies in Russia
Etienne Mignolet
Spokesperson for FPS Economy
David O'Sullivan
EU Sanctions Envoy
Belgian firm Drylock continues Russian operations despite sanctions deadline

↳ Why This Matters

The continued operation of Drylock Technologies in a Russian defense hub past an EU sanctions deadline raises concerns about sanctions circumvention and highlights the challenges in enforcing EU restrictions on companies with Russian operations.

Key facts

  • Belgian company Drylock Technologies continues to operate in Russia's Alabuga Special Economic Zone.
  • The Alabuga zone is a key site for Russian defense production, including Shahed drones.
  • EU companies were mandated to leave the zone by January 25, 2026.
  • Drylock Technologies has not yet received an exception from the Belgian government.
  • Drylock's Russian subsidiary has publicly supported employees joining the war in Ukraine and posted pro-military messages.
  • Belgian hygiene products manufacturer Drylock Technologies continues to operate within Russia's Alabuga Special Economic Zone, a site designated for defense production, despite the European Union's requirement for companies to exit by January 25, 2026. The company is reportedly in discussions with the Belgian government to secure an exception, but no such derogations have been granted by the Federal Public Service Economy (FPS Economy) to any Belgian firm.

    According to an FPS Economy spokesperson, any exceptions are assessed strictly on a case-by-case basis, requiring applicants to demonstrate that their activities are essential for purposes explicitly listed in the regulation. The spokesperson noted that a civil or hygienic purpose is insufficient grounds for an exception, especially given Alabuga's known role in manufacturing Shahed drones used against Ukraine.

    EU Sanctions Envoy David O'Sullivan previously highlighted Alabuga's significance in Russia's drone program and emphasized that sanctions circumvention is a criminal offense, with enforcement falling to national authorities. Months after initial reports revealed Drylock's Russian subsidiary publicly supported employees joining the war and posted pro-military messages on social media, these activities have continued.

    Frequently asked questions

    Alabuga is a special economic zone in Russia known for its defense production, notably housing the country's largest factory for Shahed attack drones.

    European Union-linked companies were required to cease operations and leave the Alabuga zone by January 25, 2026, due to its role in defense manufacturing.

    No, as of the latest reports, Drylock Technologies has not yet been granted an exception by the Belgian government to continue operating in the Alabuga zone.

    What Happens Next

    01The Belgian government will decide on Drylock Technologies' request for an exception.
    02FPS Economy will continue to assess derogation applications strictly on a case-by-case basis.

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    Cadence

    How It Developed

    EU companies were required to leave the Alabuga zone by January 25, 2026.
    Drylock Technologies has not complied with the exit requirement.
    Drylock Technologies is in talks with the Belgian government for an exception.
    The Belgian Federal Public Service Economy has not yet granted any derogations.
    Drylock's Russian subsidiary continues to post messages supporting Russian armed forces.

    Sources

    T1
    Belgian company seeks exception to keep operating in Russia's drone hub — as it does so anywayThe Kyiv Independent

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