“The only producer of filter tow in Russia and the CIS, 8 hectares, 145 employees, Serpukhov” – this is how the company describes its Russian facility. Cerdia, a global manufacturer of cellulose acetate headquartered in Basel (Switzerland) with its main plant in Freiburg (Germany), produces materials used for fibers, films, and plastics. Its core business, however, is cigarette filters and components for gunpowder. These components are used in the production of rockets, including MLRS systems such as “Grad” and “Smerch.” According to an investigation by StateWatch, journalists have obtained documents confirming the company’s cooperation with the Russian defense sector during the full-scale war.
Cerdia, a pioneer in acetate fiber since 1912, employs over 1,100 people and generates around $750 million in annual revenue. Its production facilities are located in the United States, Brazil, Singapore, Germany, and Russia. Despite the war, the company is not under sanctions, as it is not formally classified as a military manufacturer. However, its products fall under dual-use goods, creating risks of export control circumvention, notes lawyer Oleksandr Frolov. Similar cases have previously resulted in sanctions, as in the case of businessman Rustam Muminov.
Screenshot from the official website of Cerdia
According to customs data obtained by journalists, from 2022 through March 2025, Cerdia supplied products worth $7.3 million to Russia. The main recipients were Russian companies Gulbakhar Rus ($5.7 million) and Sertov ($1.6 million). Gulbakhar manufactures cigarettes, maintains ties with authorities, and has backed the Russian military, including by sending employees to the so-called “special military operation.” The activities of its owner, Davronjon Pulatov, in Tatarstan, which is home to the Alabuga Special Economic Zone where Shahed drones are produced,raise additional concerns.
Screenshots from Russian social media
Sertov, a manufacturer of filter fibers in Serpukhov (Russia), remains part of Cerdia’s global structure. In 2024, the company generated approximately 6 billion rubles in revenue and paid over $1 million in corporate income tax to the Russian budget. At the same time, it has cooperated with defense enterprises that are now under sanctions. In 2016, it signed contracts with the Perm Gunpowder Plant and also supplied products to JSC NIIPM, a company involved in the development of munition.
Screenshot from the Unified State Register of Legal Entities of the Russian Federation
The Perm Gunpowder Plant is a key enterprise of Russia’s military-industrial complex, producing components for Grad and Smerch systems as well as air defense systems. It is subject to sanctions imposed by the United States, the EU, and other countries. Documents indicate that between 2023 and 2025, the plant used imported cellulose acetate, including products manufactured by Cerdia, to produce rockets, aerial bombs (KAB-500, KAB-1500), and systems such as Buk, S-300, Tochka-U, Yars, Kornet, and others. The plant itself names Cerdia as one of its key and preferred suppliers.
Cellulose acetate is used in military production as a burn-rate inhibitor and binding agent in solid-propellant rockets. It controls combustion shape, pressure, and engine thrust, ensuring the stability and strength of the charge. Despite its formally civilian purpose as raw material for cigarette filters, such supplies may serve as a smokescreen for sustaining Russia’s military-industrial supply chains.
“According to international due diligence standards, a company producing military or dual-use goods should assess not only the buyer but also the end user of the product and take into account any potential links to the defense industry. This is especially important when dealing with countries engaged in active hostilities. If proper due diligence measures are not taken, or they prove ineffective, this may be regarded as negligence or deliberate disregard of information regarding the intended use of the goods,” says Oleksandr Frolov, partner in the dispute resolution practice at the international law firm Kinstellar, which specializes in issues related to dual-use and military goods regulation.
Journalists sent a request to Cerdia regarding its activities in Russia and the potential military use of its products but received no response.
This material was prepared with the support of the International Renaissance Foundation. The views expressed are those of the authors and do not necessarily reflect the position of the Foundation.
