Reuters: Western countries continue to supply Russia with chips through spacer firms

Author:
Oleg Panfilovych
Date:

Despite the sanctions, Western countries continue to supply microchips to Russia.

This is stated in an investigation by Reuters together with the Royal Joint Institute for Defense Studies.

From April to November, the United States and a number of European countries supplied Russia with $777 million worth of chips. These are components from Intel, AMD, Texas Instruments, Analog Devices and Infineon. For this purpose, gasket companies were created in Turkey and Hong Kong, which were registered in March of this year. Already within a week, the company began supplying components to the Russian Federation. Founder of Azu International Ltd. Sti also owns German microchip supplier Smart Impex. After the introduction of sanctions, it stopped supplying products to the Russian Federation but continued to supply chips to Turkey.

According to Russian customs, the company exported to Russia components worth at least $20 million, including chips from American manufacturers, for seven months starting in March.

Another company, the Turkish Smart Trading Ltd. was started by the general director of the Russian logistics firm Novelco, Hryhoriy Grigoryev. According to Russian customs declarations, the company shipped products from American semiconductor manufacturers worth at least $660,000.

Investigators found one of Grigoryevʼs posts on LinkedIn that Novelco opened a branch in Istanbul and sent goods to Russia from Turkey and does not comply with US and EU trade restrictions on Russia. Once the goods arrive in Turkey, "the shipments are processed for re-export, and the cargo can go to Russia by air, sea, road, and rail."

Sanctions are bypassed in Estonia as well. Elmec Trade Oü, based in Tallinn, sent goods worth at least $17 million to Russia between April 1 and October 31. Oleksandr Fomenko, the general director of the company, said that exports are carried out exclusively in accordance with the old contracts concluded before the introduction of sanctions.

  • In August, the "Important Histories" publication, referring to a report by experts of the Royal United Institute for Defense Research of Great Britain (RUSI), wrote that Russia continues to purchase imported components for its weapons, despite the sanctions.