FT: Despite the sanctions, Russia bought $900 000 worth of microchips and equipment. Most of them are from the European Union

Author:
Liza Brovko
Date:

Russiaʼs Federal Security Service buys technology and goods for its military-industrial complex through a spy network to circumvent sanctions. Since the beginning of the full-scale war, Russia has purchased $900 000.

This is stated in an investigation by the Financial Times.

The US Department of Justice says the Sernia network is conducting "top secret procurement activities" under the direction of Russiaʼs FSB, including for the Office of Scientific and Technical Intelligence. The network also serves the Kremlinʼs foreign intelligence service, the state defense conglomerate Rostekh, the Ministry of Defense, and the state company Rosatom.

FT journalists found out that the Russian company "Tradetools", which together with "Sernia" is controlled by one person — Oleksiy Zibirov, buys from the European Union, for example, microchips and goods for industrial production.

"Tradetools" and "Robin Trade" (it is part of the "Sernia" network), according to the investigators, are registered at the same address. By April 2022, the company "Robin Trade" brought $12.2 million worth of goods to Russia. Then sanctions were imposed on her, her income fell by 90%.

After that, "Tradetools" began to import equipment — it is still not under sanctions.

  • The New York Times previously reported that Russia was evading sanctions and importing Western electronic components for the defense industry. There they learned that the sale of chips and other electronic components takes place through Armenia, Kazakhstan and other Central Asian countries.
  • Last year, Russia significantly increased the import of chips, exceeding the pre-war level, as an economist at the Institute of International Finance Elina Rybakova informed. The value of chip imports increased from $1.8 billion in January-September 2021 to $2.45 billion in the same period last year. The Russian Federation also imported drones and components.
  • Another investigation was conducted by Reuters together with the Royal Joint Institute for Defense Studies. It says that from April to November 2022, the United States and a number of European countries supplied Russia with $777 million worth of chips.