Bosch, a German appliance and spare parts maker, is suspending its Russian factories amid accusations that "one of the main components for Russian infantry vehicles" is supplied by this company.
Report informs citing Der Spiegel that the German Ministry of Economy has launched an investigation into whether the Bosch engineering group violated a ban on the export of goods that can be used for both civilian and military purposes.
European Union sanctions have restricted exports of dual-use goods following Russia's annexation of Crimea in 2014. Additional sanctions were introduced after the Russian invasion of Ukraine.
Bosch previously said it had suspended deliveries of truck components to Russia and Russian customers in part because of indications that its products were being used for non-civilian purposes in violation of local contracts.
The company, which has plants producing vehicle parts and other goods in Russia, said much of its business in Russia had been curtailed because of the Ukraine war.
At the same time, Bosch said it was not aware of any official investigation.
"We examine the impact of the respective current sanctions lists very carefully and then implement them consistently and in every detail," the company said.
Ukrainian Foreign Minister Dmytro Kuleba said that Ukraine had found Bosch parts in Russian military vehicles.
"We take the Ukrainian foreign minister's allegations very seriously and immediately initiated an intensive investigation," the company said, adding that no spare parts were supplied directly to the manufacturer of the military vehicles.
Bosch employs about 3,500 people in Russia, where it mainly produces consumer goods, vehicle parts, and other items for the local market at three locations.
Last year, Bosch generated sales of 1.2 billion euros ($1.32 billion) in Russia.
The German giant has acknowledged that supply and delivery issues may have to pull out of Russia.
More than 300 companies have already left the Russian market due to sanctions imposed against Russia due to the war in Ukraine.