Russia imported $1 billion in American and European chips in 2023 despite sanctions – Bloomberg

Russia imported over $1 billion worth of high-tech American and European chips in 2023, despite sanctions, according to a Bloomberg report citing classified data from the Russian customs service.

The imported chips were from American manufacturers such as Intel Corp, Advanced Micro Devices, and Analog Devices Inc., as well as European companies like Infineon Technologies AG, STMicroelectronics NV, and NXP Semiconductors NV.

The documents did not indicate any violation of sanctions laws by the companies, nor did they specify who exported the chips to Russia, where they were shipped from, or when they were manufactured.

All companies contacted by Bloomberg stated they fully comply with sanctions requirements, have ceased operations in Russia, and have implemented processes and policies to ensure compliance with sanctions.

The majority of banned technologies enter Russia through re-export from third countries, particularly China, Turkey, and the United Arab Emirates. The U.S. and EU are working to block these routes, focusing especially on a list of high-priority dual-use and advanced goods identified in Russian weaponry in Ukraine or crucial for its production.

A significant portion of semiconductor sales is controlled by distributors who typically work with multiple suppliers. Manufacturers are not always obliged to track where their products end up after being sold to these companies, although specific military-grade chips are required to have a documented trail.

Overall, customs data showed that in the first nine months of last year, Russia imported chips worth $1.7 billion, with $1.2 billion produced by 20 major companies. The remaining $500 million came from smaller producers, particularly from Europe and the U.S.