Russia circumvented sanctions, importing over US$1 billion worth of US- and EU-made microchips in 2023

Russia is circumventing the sanctions aimed at preventing it from acquiring technologies and has imported US- and EU-made microchips worth over US$1 billion in 2023.

Source: Bloomberg, citing classified data from Russia’s customs service

Details: Bloomberg reported that the majority of imported semiconductors and integrated circuits in the first nine months of 2023 were manufactured by US and European companies.

These firms included Intel Corp, Advanced Micro Devices and Analog Devices Inc. as well as the European brands Infineon Technologies AG, STMicroelectronics NV and NXP Semiconductors NV.

Bloomberg said there was no indication the companies breached sanctions laws and the data did not reveal who exported the technologies to Russia, where they were shipped from, or when the goods were manufactured.

The companies said they fully comply with sanctions requirements, ceased business in Russia when the war broke out, and put in place processes and policies to monitor compliance.

Bloomberg also reported that the majority of restricted technologies enter Russia "via re-exports from third countries including China, Turkey and the United Arab Emirates. The US and the EU have been working to block those routes, focusing especially on a list of high priority so-called dual-use and advanced goods found in Russian weapons in Ukraine or that are critical to making them."

Overall, the customs data showed Russia imported US$1.7 billion of chips in the first nine months of last year, including US$1.2 billion worth made by a total of 20 companies. Smaller producers, including some from Europe and the US, likely account for the remaining US$500 million of chips.

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