Russia continues to receive new Intel and AMD chips via sanction 'workarounds'

Russia circumvents US chip bans with unofficial channels, ensuring continued access.

: Despite a 95% decrease in Intel CPU imports and an 81% drop for AMD, Russia receives substantial quantities of processors through indirect channels. Russian companies Lotos Group and Rikor have increased procurement significantly, with Rikor buying 30% more processors than the previous year. Countries like Hong Kong and Malaysia play pivotal roles in the clandestine network that supplies these chips to Russia. While sanctions aim to restrict access, the adaptability via relabeling and misclassification makes them largely ineffective.

The Russian market for American-made processors has been hit significantly by US sanctions following the Ukraine invasion. The Federal Customs Service figures show a dramatic 95% decline in Intel chip imports and an 81% decrease in AMD processors. However, these statistics do not illustrate the whole picture of the Russian tech industry's activities and adaptability.

Russia's tech sector has seen significant changes as domestic companies like Lotos Group and Rikor report an increase in processor supplies despite the official numbers suggesting a substantial reduction. Rikor alone managed to acquire 120,000 processors last year, which marks a significant 30% increase compared to previous years. This is achieved through a network of international rerouting.

A central hub in this intricate network is Hong Kong, where a particular address orchestrates the movement of billions of dollars' worth of semiconductors to Russia. In addition, countries such as Malaysia and India have also emerged as key players in facilitating the transfer of processors by reclassifying them under different product categories to avoid detection by customs.

Industry executives explain that processors are often imported into Russia without explicit labelling, which allows companies to keep customs officials unaware of the true nature of their shipments. Although processors themselves do not appear on delivery sheets, this way, Russian met demand and kept factory operations smooth, diluting the effect of sanctions.

Despite the circumvention, the financial burden of these operations is expected to rise, with forecasts predicting a 10-12% increase in processor prices due to regional trade tensions and inflation in 2025. This uncertain geopolitical environment will likely continue challenging both suppliers and consumers worldwide.

Sources: TechSpot, Kommersant

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