Evading sanctions, Russia bought $1.7B worth of US and European chips last year

[emorphy]

Why it matters: The sanctions process is broken or at least highly inefficient because Russia has managed to import many advanced goods to fuel its war machine in Ukraine. The complexity of global supply chains also doesn't help, as enforcers find it impossible to trace from where a chip originated. Meanwhile, chip manufacturers say they are adhering to the law.

Despite sanctions and export controls put in place to prevent Russian President Vladimir Putin from obtaining technology from the West that would help advance the war in Ukraine, the country still managed to import more than $1.7 billion of advanced US and European chips last year, according to classified Russian customs service data shown to Bloomberg.

The data indicated that in the first nine months of 2023, more than half of the imported semiconductors and integrated circuits were brands like Intel, AMD, Analog Devices, Infineon Technologies, STMicroelectronics, and NXP Semiconductors, to name a few. The data didn't show which companies or entities exported the technologies to Russia. It also lacked any other identifying information, such as the point of departure or the date of manufacture.

Russia's ability to obtain chips is an indictment of the inefficiency of the global sanction process. It illustrates the complexity of global supply chains, particularly for chips, which go through distributors with multiple resellers.

Also, many of these chips made their way into Russia via re-exports from third-party countries such as China, Turkey, and the United Arab Emirates. The US and EU have been trying unsuccessfully to block these passageways, especially re-exports of dual-use and advanced goods that are fueling the Russian war machine in the Ukraine.

Unnamed chip manufacturers claim they have adhered to the sanctions and have rigorous processes to ensure compliance. Bloomberg notes that there's no suggestion the companies breached international laws.

Bloomberg notes that the customs values have dipped slightly in the latter half of last year, indicating efforts by the US, EU, and Group of Seven allies to enforce sanctions on Russia became more successful. Still, Russia has become adept at evading sanctions and export controls by the West.

Late last year, Russia managed to overcome sanctions and export controls to expand its missile production beyond prewar levels. Anonymous American officials told The New York Times that Russia was running illicit networks of smugglers through its intelligence services and Ministry of Defense to export critical components to other countries from which they can be shipped to Russia more easily.

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https://www.techspot.com/news/101667-evading-sanctions-russia-bought-17b-worth-chips-western.html

 

[yRaz]

So they imported, what, 2 4090s? Also, sanctions aren't this stone wall that people think they are. They can just import them threw a non-NATO nation and that non-NATO nation is probably broken so they'd be more than happy to scalp 10% off the top.

 

[Theinsanegamer]

This surprises who exactly? "Your" chips are being made in a hostile nation that has relations with the nation that you are sanctioning. Gee I wonder how they are getting those chips. It's a real mystery.

 

[ScottSoapbox]

The sanctions are not about helping Ukraine, they are about punishing a nation that refused to bow down to the US.

 

[Theinsanegamer]

The sanctions are not about helping Ukraine, they are about punishing a nation that refused to bow down to the US.

Well, you know, Putin could have always just......NOT invaded, erm, conduction a "Special Military Operation", in another country. Funny how that works.

 

[VitalyT]

Using Ukraine to sabotage Russian economy is the dream come true for the US who has been helping it all along, anything to satisfy their limitless ambition for controlling the world. Russia and China would never bow down, so they go the other despicable ways to cause damage.

 

[Theinsanegamer]

Using Ukraine to sabotage Russian economy is the dream come true for the US who has been helping it all along, anything to satisfy their limitless ambition for controlling the world. Russia and China would never bow down, so they go the other despicable ways to cause damage.

Well, if Ukraine was an American ally, I guess attacking it would be a REALLY stupid thing to do, especially if you rely on the west for your economy to function.

Hmmmmm......

 

[VitalyT]

Well, if Ukraine was an American ally, I guess attacking it would be a REALLY stupid thing to do, especially if you rely on the west for your economy to function

The US has been pumping dollars into Ukraine and anti-Russian propaganda for years now, which precipitated the conflict, just like the US wanted all along. They invested into creation of anti-Russian regime right on its border, to cause maximum trouble, and they used Ukraine as a scapegoat. And now Ukraine is paying for sleeping with the enemy, or as the old saying goes - "Be afraid of the Greeks bearing gifts", which Ukraine ignored due to high level of corruption. They were happy to take US dollars and do their nasty biddings.

 

[acoustis]

The US has been pumping dollars into Ukraine and anti-Russian propaganda for years now, which precipitated the conflict, just like the US wanted all along. They invested into creation of anti-Russian regime right on its border, to cause maximum trouble, and they used Ukraine as a scapegoat. And now Ukraine is paying for sleeping with the enemy, or as the old saying goes - "Be afraid of the Greeks bearing gifts", which Ukraine ignored due to high level of corruption. They were happy to take US dollars and do their nasty biddings.

This!

 

[CowsGotMilk]

I live in Lithuania, EU, it's a country with many business connections with Russia. It's our neighbour too. They do bypass all the sanctions they need, they fake documents to customs and other government organisations. Russia do use other eastern countries which doesn't have technology sanctions and gets all the goods through them. This simple scheme goes both ways, they do succesfully export everything also.

I guess same **** goes with China.

The only way, to protect out world, is to sell all the goods, only, to approved countries and unions. And take away "approved status" when the economies are not trusted.

There is really no other way to protect our technologies.

 

[Nobina]

Well, you know, Putin could have always just......NOT invaded, erm, conduction a "Special Military Operation", in another country. Funny how that works.

And let NATO surround them by building military bases in Ukraine on Russian border?

 

[acoustis]

There is more to this story than just a few fors and againsts. It's the money that drives the whole world. Some people, or let's say most of people on top don't mind the economy practice like this. It's naive to believe this can be stopped. There is no right or wrong nor US vs Russia or in this particular case Russia vs Ukraine. It is how to get more money, more power... Chessboard would be the analogy. But way more complex!

Who is more in the right here? US and West or Russia and those that support them? It is definitely wrong for a country to invade another country. But talking about what could be "invasion", it is a very open debate. Talk about freedom in Middle East (and Vietnam, Korea, Balkans, Falklands) - who defines it. The locals that lived their way of freedom which seemed oppressive to western world view. Or freedom that is imposed on those nations by that same western world view.

Let's not talk justice while we close our eyes to lies that help us make money and gain power.

 

[redhat]

Forget about Russia, many EU companies import oil from India which is in turn from Russia!.

 

[kiwigraeme]

Forget about Russia, many EU companies import oil from India which is in turn from Russia!.

Saudi Arabia is a big buyer and on selling

That's why its hard to know if organic eggs are organic , where your tropical hardwood comes from
If what you order in an expensive restaurant is what you actually get

to answer this article in one word "drugs"

a huge billion dollar business more stuff from countries to others that the govt of does not want


The other point is. Russia can buy tech, drones etc - But much harder to buy expertise - drones easier bring in some Iranians .

With the oil depot fires etc Russia is being stretched on know how and high grade stuff to rebuild

Russia is a much more efficient USA - of rich and powerful exploiting the masses directly and indirectly , With a much higher corruption level , but USA Senators stink of corruption from Big money

Russia was always welcomed to the fold - see China despite current sanctions due Chinas stealing and imperistic plans .
Baltic States made a good choice , they could have gone bad as well

Russia is a pitiful economic power house given huge resources - same as Italy or Australia - They are a joke
Thankfully except for nukes - russian army is a joke and is now seriously weakened for decades

 

[veLa]

Using Ukraine to sabotage Russian economy is the dream come true for the US who has been helping it all along, anything to satisfy their limitless ambition for controlling the world. Russia and China would never bow down, so they go the other despicable ways to cause damage.

I'll say the quiet part out loud, decimating a dictator's authority and exposing his military as utterly incompetent, incapable, and unworthy of modern conflicts, all without sacrificing a single American life is worth it to the US. Besides, maybe Russia shouldn't have started a war with our ally if they didn't want direct US economic intervention.

Some food for thought.

 

[Theinsanegamer]

The US has been pumping dollars into Ukraine and anti-Russian propaganda for years now, which precipitated the conflict, just like the US wanted all along. They invested into creation of anti-Russian regime right on its border, to cause maximum trouble, and they used Ukraine as a scapegoat. And now Ukraine is paying for sleeping with the enemy, or as the old saying goes - "Be afraid of the Greeks bearing gifts", which Ukraine ignored due to high level of corruption. They were happy to take US dollars and do their nasty biddings.

Yes I'm SURE that eastern europe hates Russia only because the USA pumps money into them and NOTHING to do with decades of soviet abuse and threats from modern russia. Yup. Totally wouldnt matter whatsoever.

Do you guys even try with your excuses? Is it the US's "nasty bidding" to defend their borders from a hostile invader? Or in your mind is invasion totally OK when Russia does it?

Oh yeah, mean words dont justify declaring war and shelling cities. If they did, we would be fully in the right to glass all of Moscow and St Petersburg tonight.

And let NATO surround them by building military bases in Ukraine on Russian border?

So to avoid being surrounded by NATO, they decide to take ukraine, which borders poland.... a NATO country since 1999. Genius. 150 IQ move. Of course, I can see why Russia would worry, given how hard it is for them to invade an enemy capital 90 miles from their border. Should NATO desire, the mighty RUSSIAN BEAR would be neutered, stuffed, and mounted within a fortnight.

Perhaps, if russia had actually built up relations with other countries and had anything to offer but old 70s soviet tech and cheap vodka, they could have had friendly relations and even trade allies instead of hostile militarys at their border. But that would require russia to invest in their country and their economy, which would get in the way of decades of wholesale looting by the elite.

It also ignores two realities: the first being the acceleration of ukrain as a NATO member came as a direct result of russia's 2008 invasion of Georgia (this is something russia could have chosen to not do) and the 2014 invasion and annexation of crimea (this is something russia could have chosen to not do). The second is that russia's feelings of inadequacy over not having buffer states with NATO doesnt justify the deaths of hundreds of thousands of people and the wanton shelling of entire cities. Russia declared war, and is suffering the consequences of declaring war. They could have NOT done this, but that would hurt Putin's ego, and it's not on the US to act sympathetically to an imperialist country hell bent on expanding its territory at the expense of other nation's solidarity. All economic sanctions happening to russia right now are their own fault, and watching defenders of the paper bear seethe and mald every time these genius plans of putin's go sideways is hilarious.

 

[Nobina]

So to avoid being surrounded by NATO, they decide to take ukraine, which borders poland.... a NATO country since 1999. Genius. 150 IQ move. Of course, I can see why Russia would worry, given how hard it is for them to invade an enemy capital 90 miles from their border. Should NATO desire, the mighty RUSSIAN BEAR would be neutered, stuffed, and mounted within a fortnight.

Perhaps, if russia had actually built up relations with other countries and had anything to offer but old 70s soviet tech and cheap vodka, they could have had friendly relations and even trade allies instead of hostile militarys at their border. But that would require russia to invest in their country and their economy, which would get in the way of decades of wholesale looting by the elite.

It also ignores two realities: the first being the acceleration of ukrain as a NATO member came as a direct result of russia's 2008 invasion of Georgia (this is something russia could have chosen to not do) and the 2014 invasion and annexation of crimea (this is something russia could have chosen to not do). The second is that russia's feelings of inadequacy over not having buffer states with NATO doesnt justify the deaths of hundreds of thousands of people and the wanton shelling of entire cities. Russia declared war, and is suffering the consequences of declaring war. They could have NOT done this, but that would hurt Putin's ego, and it's not on the US to act sympathetically to an imperialist country hell bent on expanding its territory at the expense of other nation's solidarity. All economic sanctions happening to russia right now are their own fault, and watching defenders of the paper bear seethe and mald every time these genius plans of putin's go sideways is hilarious.

Sounds like Russia simply should've sat on its *** and done nothing, and everything would be fine and dandy for them.

 

[Vulcanproject]

Sounds like Russia simply should've sat on its *** and done nothing, and everything would be fine and dandy for them.

I think you need to look at whether Russia truly has any friends or even wants to have friends. You can easily quip: "well no country has friends, only interests." It's cynical and realistic yet I would argue only true to a point. North Korea, Iran, China, Syria, Belarus etc only supply arms and materiel because Russia either pays them or entirely supports their regime. They have no other interest in Russia whatsoever and will not run a charity for Russia.

Other countries do have friendships and close ties usually due to mutually beneficial relationships, respect however grudging and general value based, cultural or historical alignment.

To me Russia has virtually no friends because of long aggressive policies towards those neighbours it considers weaker and inferior, that continue into the 21st century. Coupled with delusions of grandeur as to its actual place in the world today. There is no respect for the rights of others. Just the rights of Russia, which is always the victim of course.

There was a recent survey in dozens of countries asking people if they consider their culture superior to others. In virtually all Western nations, only a small percentage said yes. 25 percent or less was typical. The main reply being there is plenty still to learn from others.

In Russia clear 70 percent said Russian culture is the greatest. Ethnocentrism is all pervasive and still clearly drives policy in the Kremlin today. This is the real reason why Russia is demolishing Ukraine. Ukrainians are inferior, they are not a state, they are 'little' Russians gone bad and need to be corrected, this is a civil war and they need to bend the knee.

Only a change in this attitude can allow Russia to not clash with neighbours so frequently and build genuine functioning, if not collaborative relationships based on mutual respect.

 

[toooooot]

The sanctions are not about helping Ukraine, they are about punishing a nation that refused to bow down to the US.

Not true. If you saw what Russian soldiers did to women and children in Bucha, Irpen you would not say that. Mass murders, mass rapes. They started imposing serious sanctions on Russia when they realized that Putin is not some proud man that won't bow to western nations but a typical crazy dictator sending his animals to kill and rape.
Russia is not a proud nation that refuses to bow down, it is now just a bunch of people firmly set to go onward to their destruction. And I sincerely hope it does. Miserable nations of which 80% lives in utter poverty while their land has almost every rare resource that could make their living good. They are not proud, they are extremely foolish, having wasted their chance to advance again and again throughout history.

 

[Freddie159]

So they imported, what, 2 4090s? Also, sanctions aren't this stone wall that people think they are. They can just import them threw a non-NATO nation and that non-NATO nation is probably broken so they'd be more than happy to scalp 10% off the top.

I would guess alot more than 10% and HOPEFULLY more like 1000% so Putin loses even more cash!! If the non-Nato nation middle man gets too aggregious they could be the next place to be on the sanctions list and then Putin will be paying even more for the parts, get your money while you can.

 

[Beerfloat]

The US has been pumping dollars into Ukraine and anti-Russian propaganda for years now, which precipitated the conflict, just like the US wanted all along. They invested into creation of anti-Russian regime right on its border, to cause maximum trouble, and they used Ukraine as a scapegoat. And now Ukraine is paying for sleeping with the enemy, or as the old saying goes - "Be afraid of the Greeks bearing gifts", which Ukraine ignored due to high level of corruption. They were happy to take US dollars and do their nasty biddings.

The Ukraine is uniquely familiar with the Russian people and their attitudes and behavior. Maybe you should have tried giving them fewer reasons to look for friends everywhere else.

The history of Russia is one of squandered opportunities. The Russian people have so much going for them but somehow keep shooting themselves in the foot. Often, right after putting their foot in their mouth.

 

[VaRmeNsI]

NATO gave Ukraine a stick and told them to go poke the bear.

 

[Endymio]

I'll say the quiet part out loud, decimating a dictator's authority and exposing his military as utterly incompetent, incapable, and unworthy of modern conflicts, all without sacrificing a single American life is worth it to the US.

Given that the US and NATO are giving Ukraine double Russia's entire annual defense budget in the most advanced military hardware -- as well as an incalculable amount of logistics aid and real-time satellite and drone intel data -- the underdog in this David-vs-Goliath fight isn't who you think it is. Especially not when Ukraine drafted every last man-jack in the country into the military in the early days of the War. And when a US-made cruise missile, transported near the front by the UK and fed targeting data from a US spy satellite destroys a Russian artillery emplacement, can we say "Ukraine" did it, merely because somewhere along that vast chain of events, some Ukrainian was directed to press one big red button?

Still, Russia not only continues to advance, slowly but steadily in Ukraine, and they have yet to use their truly heavy weapons and tactics: carpet-bombing of cities (as the US did in Mosul), or their vast stocks of nuclear and biochem weapons. The war maps don't lie.

Despite fantasies about "decimating" the Russian military, it now stands at 1.5M troops (up from 1.02M before the war began) and those troops are much better trained and experienced today than they were two years ago. But the real victor here is China. They've drained US munitions stocks, gotten cut-rate Russian oil, gas, and minerals, and been given invaluable data on our most advanced weapons systems -- and in many cases, actual units to disassemble and reverse-engineer.

 

[m3diapers]

Yeah right...illegally. I could find a decent car in stock in 2021 b/c luxury car dealers exported vehicles legally to countries around Russia since the car ban

 

[JamesBlond]

I am sorry, this whole war is a lie, Putin is made out to look like the bad guy, the family man who loves his country against the Ukraine Dictator who likes making freaky videos of ******* **** which to me does not add up.