Russia continues to be supplied with Western electronics despite sanctions and export restrictions
A survey by Reuters in conjunction with the Royal United Services Institute (RUSI), a UK-based defense think tank based in London, details for the first time the global supply chain that continues to supply Russia with IT components and other Western electronics. The investigation identified a galaxy of obscure importers and exporters, such as Azu International, and revealed that shipments of semiconductors and other technologies continue to arrive in Russia from Hong Kong, Turkey, but also l Estonia, a member of the European Union.
Russia bought at least $2.6 billion (2.43 billion euros) worth of computer and electronic components in the months following Western tech sanctions against its invasion of Ukraine, Reuters reported on Tuesday, citing Russian customs documents the British news agency purchased from three commercial vendors. Semiconductors and other technology arrived in Russia between April and October 31 via Hong Kong and Turkey – which did not join the export restrictions of the United States and the European Union – as well as Estonia. Some of the suppliers – including companies in Hong Kong and Turkey – have links to Russian nationals, according to a review of documents filed by the companies.
American companies, such as Intel, AMD and Texas Instruments, accounted for at least $777 million of imported products. Intel, AMD and Texas Instruments told Reuters they did not ship products to Russia in compliance with sanctions and export controls.
Reuters reported in August in a survey joint with the RUSI that chips produced in series by Western companies, in many cases not subject to export restrictions, appeared inside missiles and weapons systems that the Russian army deployed in Ukraine. The US Department of Commerce estimates that Russia’s access to semiconductors has been reduced by almost 70% since the start of the Russian invasion of Ukraine. However, examination of customs records “revealed that since the invasion the declared value of imports of semiconductors by Russia has, in fact, increased sharply”says Reuters.
According to RUSI, Russia has been scrambling to find new ways to secure access to Western microchips. Many components are sold through distributors operating in Asia, such as Hong Kong, which serves as a gateway for electronics for the Russian military or companies acting on its behalf.
The European Commission has said that it “takes circumvention of the EU very seriously, as it is a practice that can undermine the effectiveness of EU sanctions”. The Kremlin and Russia’s industry and trade ministry did not respond to requests for comment from the British agency.