Russia finds way to buy sanctioned Nvidia AI chips: through Asian countries
India is an important intermediary in the supply of powerful Nvidia AI chips to Russia, and Malaysia has become the primary source of the technology.
Source: Bloomberg
Details: Indian company Shreya Life Sciences supplies Russia with advanced technologies. Bloomberg noted that the company exported 1,111 Dell PowerEdge XE9680 servers with powerful Nvidia processors designed for artificial intelligence applications to Russia from April to August 2024.
The value of these shipments is estimated at US$300 million. Western sanctions restrict the export of these servers to Russia due to their potential use in military developments.
Despite the efforts of the US and EU to limit Russia's access to sensitive technologies, India is increasingly becoming an important intermediary for the export of prohibited goods. Whilst India is a transit point, trade data suggests that Malaysia is the real source.
Doing business with Russia is not illegal in India, as Prime Minister Narendra Modi's government is not party to the numerous rounds of US and EU sanctions imposed on Moscow.
Shreya Life Sciences has had ties to Russia since 1995 when the company was founded in Moscow by Sujit Kumar Singh. Initially focused on pharmaceutical supplies, Shreya Life Sciences now also exports process equipment.
The company supplies products to the Russian company Main Chain, which is not under US sanctions. The supply data shows that Dell International Services India Private Ltd., a subsidiary of Dell, ordered the imports from Malaysia, and Dell Global BV (Singapore branch), another subsidiary, supplied them.
In particular, between March and August 2024, India imported more than 1,400 Dell PowerEdge XE9680 servers from Malaysia, which were later resold to Russia.
Main Chain also purchased technology products from a second Indian company, Hayers Infotech Private Limited. Together, Shreya and Hayers Infotech have exported US$434 million worth of high-tech goods to Russia since February 2022.
Read more: Russia is importing ASML equipment in parts to produce microchips. Why aren't sanctions working?
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