Millions of dollars worth of microchips were supplied to Russia to circumvent sanctions: Reuters revealed the scheme

Kateryna Chernoval23:52, 13.12.22

$777 million worth of chips were delivered to the Russian Federation through intermediary firms.

From March 2022, $777 million worth of chips were delivered to the Russian Federation / photo ua.depositphotos.com
From March 2022, $777 million worth of chips were delivered to the Russian Federation / photo ua.depositphotos.com

Microchips produced by Western companies continue to be supplied to Russia  , despite the sanctions introduced against the Russian Federation due to the full-scale invasion of Ukraine. 

According to the Reuters investigation  , intermediary firms were created in Turkey and Hong Kong for the sale of microchips to Russia. Through companies registered in March 2022, $777 million worth of chips were delivered to the Russian Federation. These are parts manufactured by Intel, AMD, Texas Instruments, Analog Devices and Infineon.

The publication writes that from March 2022, for seven months, one of the companies exported to Russia components worth at least 20 million dollars.

Another firm turned out to be the Turkish Smart Trading Ltd., founded by Grigoriy Grigoriev, CEO of the Russian logistics firm Novelco. According to Russian customs declarations, the company supplied American-made semiconductors for at least $660,000.

Investigators also discovered one of Grigoriev’s LinkedIn posts that Novelco had opened a branch in Istanbul and was shipping goods to Russia from Turkey despite US and EU trade restrictions on Russia.

It is noted that as soon as such goods arrive in Turkey, the shipments are processed for re-export. After that, the products can be delivered to Russia by air, sea, road or rail transport.

According to the investigators, a company in Estonia also helps circumvent Russian sanctions. From April 1 to October 31, 2022, the Elmec Trade company, which is based in Tallinn, sent goods worth at least 17 million dollars to Russia.

Elmec Trade General Manager Oleksandr Fomenko told Reuters that his company buys products through official channels, complies with all legal requirements and complies with all sanctions and export restrictions.

Meanwhile, when asked how his company could continue to export Analog Devices and other Western chips months after the manufacturers announced the suspension of sales to Russia, he said “most” of the shipments were orders placed last year. According to him, deliveries were delayed due to disruptions in transit due to the pandemic.

At the same time, Analog Devices did not respond to journalists’ requests for comments.

Sanctions against the Russian Federation: the latest restrictions

Great Britain imposed sanctions  against five Russian security forces and military personnel for torture against Ukrainians and the war in Ukraine.

In addition, the United States imposed sanctions  against several dozen Russians due to allegations of human rights violations in Ukraine. As the US Treasury Department announced, sanctions were imposed on four people accused of “infiltrating Russia’s operations” for violating the rights of Ukrainian civilians in the occupied territories.

Earlier it was also reported that the European Union plans to introduce restrictions on Russian manufacturers of unmanned aerial vehicles in the new ninth package of sanctions against Russia. The EU is also considering restrictions on other technologies and components used by Moscow for military purposes.

(C)UNIAN 2022

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