War and Prosthetics

2026-01-18

7 min read

War and Prosthetics

Vladimir Putin (5th from left, sitting in front of the murals) at a meeting in 2017. Two seats away from him: Ex-Ottobock Russia boss Oliver Jakobi (7th from left, blue tie)

The Russian business of the orthopedic technology manufacturer Ottobock is growing significantly. However, the company denies supplying the military. And yet questions remain unanswered.

That pictures sometimes say more than 1000 words may be a hackneyed phrase. Nevertheless, it is not always wrong. For example, on the Kremlin’s website, in a series of many photos from December 5, 2017, there are two pictures showing Oliver Jakobi. The CEO of Ottobock, at that time still head of the Russian business, sits to the left of Russian President Vladimir Putin – separated only by Olga Golodets, at that time still Deputy Prime Minister of Russia.

The appointment on “Volunteer Day” at the Russian State Specialized Academy of Arts, a university for students with disabilities, is about prostheses and aids. According to the Kremlin transcript, Putin opens the round and tells what has been done to break down barriers. Jakobi, in his role as a guest, thanks him for the support of the past years and talks in detail about necessary improvements. So far, so good – had Russia not already annexed Crimea a good three and a half years earlier. The picture fits the development of the German prosthesis manufacturer in Russia in recent years. After Russia’s attack on Ukraine, turnover initially fell. But then it rose from just under 75 million euros in 2022 to about 109 million euros for the year 2024, as can be seen from the details of the IPO. In the first half of last year, it was then around 71 million euros for just six months. Unlike other German companies, the prosthesis manufacturer is doing good business in Russia.

Ottobock, however, denies that this has anything to do with Russia’s war in the Ukraine. The company classifies even the picture from December 2017 upon request as follows: “You are alluding to an industry meeting in 2017, in which more than 40 representatives of market participants took part,” says a response to a written request from WELT AM SONNTAG. “It was about improving the quality of care for civilian patients.” The “long-standing close relationships claimed by you” could not be derived from this. “The one-off industry meeting has no influence on our current trade relations.” For some time now, Ottobock has only reacted to inquiries from this newspaper about its own Russian business in writing, if they are made in writing, and not always even then. But one thing can be said about both pictures: To the right of Oliver Jakobi sit mainly government representatives of Russia. The people on the side opposite Putin and Jakobi, on the other hand, are obviously at least largely wheelchair users, including a man in uniform. Of course, they can also be described as market participants.

SUSPICIOUS ACTIVITY REPORT FILED

In view of the Russian war, there are several decisive questions for Ottobock: Is the firm possibly violating international sanctions? And even if the firm is formally doing everything right, does it control sufficiently in daily business that its products do not go to military institutions, suppliers or disabled soldiers or ex-soldiers?

In a suspicious activity report against Ottobock dated August 22 of last year to the Federal Office for Economic Affairs and Export Control (Bafa), which WELT AM SONNTAG has seen, it states: “There are concrete indications that Ottobock SE and Otto Bock Manufacturing exported several hundred goods sanctioned under the European Union’s Russia sanctions to OOO Otto Bock Service or OOO Mobility in the period between January 2023 and October 2024 and consequently violated the Russia sanctions.” Furthermore, there were concrete indications that “deliveries to Ottobock-RUS were at least partially intended for military purposes or military end users, that any exemptions under Regulation (EU) 833/2014 are excluded.”

Ottobock wrote in mid-November upon request: “We are not aware of a suspicious activity report pursuant to Section 6b of Regulation (EU) No. 833/2014 to the Federal Office for Economic Affairs and Export Control.” In the middle of this week, the company expressed itself similarly again. The Bafa itself did not comment on the information. However, there is a second official source that confirmed the receipt of this suspicious activity report upon request. However, no consequences are known so far. Essentially, it is only about one question: Did Ottobock supply Russia with prostheses, prosthesis parts and machines for their adaptation beyond the permitted extent? And did the firm do everything necessary to exclude such risks?

CAUTION IN THE IPO PROSPECTUS

In the IPO prospectus of September 29, 2025, Ottobock argues as follows: “In Russia, our business activities are limited to the distribution of prostheses, orthoses, components, wheelchairs and consumables for civilian patient care, the assembly and sale of wheelchairs for civilian purposes as well as the individual adaptation of medical aids in orthopedic workshops for civilian patients.” It further states: “In the case of a delivery to an external clinic or workshop of a third-party provider, we check the respective facility against the aforementioned sanctions lists. In addition, we do not supply products to clinics or workshops that are connected to the military, paramilitary units, the police or the intelligence services.”

Due to the nature of this business, however, Ottobock does not know the patients who are treated in the facilities of third-party providers, it continues. The firm has no legal or practical means available to verify the use of the products in these civilian facilities or to determine it otherwise. “For this reason, we cannot completely exclude that certain of our products are also used in these facilities for the treatment of war invalids or veterans.”

Observers, however, point to another sentence in the prospectus: “Our participation is limited to tenders in the civilian sector for the supply of medical devices to the civilian population. Our contractual partner in tender procedures in Russia is the Russian Social Insurance Fund.” But this, according to experts on the situation in the country today, is not an independent organization that limits itself purely to civilian patients, but is functionally and administratively assigned to the Russian Ministry of Labor and Social Affairs.

The needs of war wounded, in turn, are registered via the Ministry of Defense with the Ministry of Labor, experts describe the situation in Russia. “Procurement takes place via social insurance and social fund structures, while care takes place in military and rehabilitation facilities.” Screenshots of websites of the Social Fund and the Ministry of Labor, which are available to this newspaper, prove the connection.

Ottobock argues upon request as follows: “The costs of individual care are borne by a cost bearer. In the case of civilians, this is the Social Fund, with which we have contracts. In the case of military personnel (whom we do not supply), the military or the responsible authority bears the costs.” What the company does not mention: Demobilized ex-soldiers are very much settled via the Fund. This is not a secret.

Overall, the company is more cautious with its statements in the IPO prospectus than in the later answers from Ottobock’s press department: In them, the firm retreats primarily to formal questions: “In the case of military personnel (whom we do not supply), the military or the responsible authority bears the costs.” This answer apparently only includes active military personnel. Ottobock does not mention that in the case of wounded former soldiers who need prostheses, it is also the Fund. “Furthermore, we do not participate in tenders in connection with the military, paramilitary, the police or the intelligence services,” the firm writes further. Again, it does not address the fact that such tenders also run via the SVR.

Ottobock denies profiting from the war in Ukraine. At the same time, a look at its own IPO prospectus shows that the company cannot rule out the use of its products by war invalids or veterans who are no longer in military service. In the answers to this newspaper, however, the firm argues more narrowly – via cost bearers, responsibilities and formal demarcations.

CEO Jakobi, who was operationally active in Russia until 2020 and formally led the business of OOO Otto Bock Service until 2022, should know what the billing structures really are.