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Russia Successfully Dodging Sanctions To Secure Semiconductors For Military Tech

One astute geopolitical blog has issued a report exploring the many ways which sanctions on Russia have come back to bite their issuers. The same author had also clearly one year ago predicted precisely the scenario unfolding now.

Over the weekend, Bloomberg explored another key area where President Putin has been given a lifeline via third party countries such as Turkey, China the UAE, Kazakhstan and Serbia when it comes to semiconductors which are vital to military tech and other industries.

Source: Bloomberg

Bloomberg writes that "Russia looks to be successfully working around European Union and Group of Seven sanctions to secure crucial semiconductors and other technologies for its war in Ukraine, according to a senior European diplomat."

Citing the source, the report continues: "Russian imports in general have largely returned to their pre-war 2020 levels and analysis of trade data suggests that advanced chips and integrated circuits made in the EU and other allied nations are being shipped to Russia through third countries such as Turkey, the United Arab Emirates and Kazakhstan, the diplomat said, pointing to those private assessments."

This despite sweeping EU sanctions and restrictions impacting hundreds of items, including crucial technologies, meant to cripple the Russian economy and its the defense sector in particular.

Russia's sources of imported chips before the war and before sanctions (2017-July 2021)...

As for China, Bloomberg observes: 

Shipments from China to Russia have also surged as Beijing plays an increasingly important role in supplying Moscow, the diplomat added, asking not to be named discussing sensitive information. Those countries outside the EU haven’t sanctioned Russia themselves, but most have repeatedly denied they are helping the Kremlin.

Russian does actually produce domestic semiconductors; however, it's long been known that government agencies and large private companies often refuse to use them due to their low quality and the manufacturer's inability to keep pace with technological demands.

Tyler Durden Mon, 03/06/2023 - 20:00
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