Kyiv - Russian pounded residential areas in a coastal town near the Ukrainian port city of Odesa with missiles early Friday killing at least 18 people, authorities reported, a day after Russian forces withdrew from a strategic Black Sea Island amidst a special report citing a sizable number of Russian entities have yet to pay a price due to Western sanctions.

Reuters reported that nearly three dozen leaders of Russian weapons firms and at least 14 defense companies have not been sanctioned by the United States, the European Union or the United Kingdom. In addition, sanctions on Russia's arms makers and tycoons have been applied inconsistently by these NATO allies, with some governments levying penalties and others not, the Reuters review showed.

Alan Lushnikov, the largest shareholder of Kalashnikov Concern JSC, the original manufacturer of the well-known AK-47 assault rifle, is yet to fall under sanctions. Lushnikov owns a 75% stake in the firm, according to the most recent business records reviewed by Reuters.

His company accounts for 95% of Russia's production of machine guns, sniper rifles, pistols and other handheld firearms, and 98% of its handheld military machine guns, according to its website and most recent annual report.

The same goes for Almaz-Antey Concern, a Moscow-based defense company specializing in missiles and anti-aircraft systems. The company is sanctioned by the United States, EU and UK, but not the CEO Yan Novikov.

Almaz-Antey’s website displays the motto “Peaceful Sky is Our Profession.” The company makes Kalibr missiles, which Russia’s Ministry of Defense has credited with destroying Ukrainian military installations. In a statement last month, the ministry said Russia had fired long-range Kalibr missiles at a Ukrainian command post near the village of Shyroka Dacha in eastern Ukraine, killing what the ministry claimed were more than 50 generals and officers of the Ukrainian military.

In response to a list of questions submitted by Reuters about Western sanctions aimed at Russia, a Kremlin spokesperson said "the consistency and logic of imposing sanctions, as well as the legality of imposing such restrictions, is a question that should be put directly to the countries that introduced them."

One of the highest-profile Russian firms to escape Western sanctions is VSMPO-Avisma Corp., which is the world’s largest titanium supplier and 25% owned by Rostec. It supplies Russia’s defense industry, but also counts major Western aerospace companies among its clients.

VSMPO-Avisma also sells to Europe’s Airbus(AIR.PA), and it supplied U.S. aerospace giant, Boeing Co(BA.N) up until March.

Other companies in Russia’s defense industry identified by Reuters that have not been sanctioned by the United States, EU or UK include the V.A. Degtyarev Plant, a facility 165 miles northeast of Moscow that makes machine guns, anti-tank and anti-aircraft weapons that are sold to the Russian military. Its weapons include the Kalashnikov PKM and PKTM machine guns, as well as Kord rifles and machine guns, some of which are mounted on armored vehicles.

Also not sanctioned is the Klimovsk Specialized Ammunition Plant, south of Moscow, where “world-famous cartridges” for pistols and Kalashnikov assault rifles are produced, according to an archived version of its website. Neither is the Novosibirsk Cartridge Plant, an ammunition manufacturer that calls itself “one of the leading engineering enterprises of the military-industrial complex of Russia.”

The West has levied sanctions on a swath of Russia’s economy to punish Moscow, an effort that so far has done little to deter the Russian offensive. The Ukrainian military has been outgunned by Russian artillery in places such as the industrial city of Sievierodonetsk, which it ceded to Russian forces last week after weeks of intense fighting.

Video of a pre-dawn attack on Friday, showed the charred remains of buildings in the small town of Serhiivka, located about 50 kilometers (31 miles) southwest of Odesa. The Ukrainian president’s office said three X-22 missiles fired by Russian bombers struck an apartment building and two campsites.

“A terrorist country is killing our people. In response to defeats on the battlefield, they fight civilians,” Andriy Yermak, the chief of staff to Ukrainian President Volodymyr Zelenskyy said.

The airstrikes followed the pullout of Russian forces from Snake Island on Thursday, a move that was expected to potentially ease the threat to nearby Odesa, home to Ukraine’s biggest port. The island sits along a busy shipping lane.
-AP/Reuters