Russia Imports Tech for Weapons Despite Sanctions, with Majority from the US: Report

Russia's Tech Imports for Weapons

Russia continues to import foreign electronics for its weapons, including a significant amount from the US, according to a joint report. Despite sanctions, nearly $9 billion worth of tech was imported for Russian weapons, with components from companies like Intel and AMD found in their military arsenal.

Sanctions Dodging and Import Statistics

Despite sanctions imposed by the US and its allies, Moscow has managed to import "high priority" electronics worth almost $9 billion, necessary for their military operations in Ukraine. These imports consist mainly of microchips, bearings, navigational systems, and other electronics used in Russian missiles, drones, and armored vehicles. From January to October 2023, approximately 43.9% of this imported tech was originally manufactured by US-based companies and their allied countries.

US Contributions to Russian Weapons

The report indicates that US-based manufacturers alone have contributed to at least 27% of the tech found in Russian weapons during the specified period. Advanced electronics imported by Russia for military use, valued at $8.77 billion, have seen a decline of 10% since the war began. However, the report highlights that a significant portion of this tech still originates from US-based companies such as Intel, Advanced Micro Devices, and Texas Instruments.

Key Contributors and Sales Channels

Intel's goods worth $351 million and Analog Devices' tech worth $269 million were imported for Russian weaponry from January to October 2023. Additionally, goods worth $174 million from AMD and $140 million from Texas Instruments were also imported. These components have been found in Russian weapons used in the battlefield, despite the companies halting sales to Russia. The majority of these goods were sold and dispatched through China and Hong Kong, accounting for nearly 70% of the imports.

China's Role and Western Coalition

Chinese tech accounted for 44.7% of the imported components found in Russian weaponry during the first three quarters of 2023, more than the US. However, the Western coalition, which includes countries like South Korea and Japan, still contributed a greater amount of imported tech. This indicates that Russia still relies on Western advanced electronics for its weapons.

Effectiveness of Export Controls

The report suggests that export controls could be effective in curbing Russia's military activities, as it is highly likely that Russia still requires Western advanced electronics for its weapons. However, the researchers emphasize the need for major changes in the current enforcement approach to improve effectiveness. They call on Western lawmakers to tighten restrictions on third-party sellers and encourage the private sector to comply with sanctions more effectively.

Ukrainian President's Statement

Ukrainian President Volodymyr Zelenskyy recently expressed concerns about loopholes in Western sanctions. While acknowledging a slowdown in the Russian defense industry, he emphasized the necessity of blocking schemes that circumvent sanctions to ensure their 100% effectiveness.

The joint report by the Yermak-McFaul International Working Group on Russian Sanctions, which operates under President Zelenskyy's office, and led by Michael McFaul, former US ambassador to Russia and current Stanford professor, highlights the ongoing issue of tech imports for Russian weapons despite sanctions.

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By: mloh@businessinsider.com (Matthew Loh)
Title: Russia Imports Tech for Weapons Despite Sanctions, with Majority from the US: Report
Sourced From: www.businessinsider.com/half-russia-imported-military-technology-us-eu-companies-ukraine-2024-1
Published Date: Fri, 12 Jan 2024 05:09:57 +0000