Russia would be negotiating with China to circumvent sanctions and import chips from Japan

2023-06-20 16:09:00

Russia would be negotiating with strategic countries to circumvent the economic sanctions imposed after its invasion of Ukraine. According to a report released by the Nikkei Asia on Monday (19), the China and other countries are brokering the purchase of Japanese semiconductors to Moscow.

Russian manufacturers are barred from purchasing technology products from several countries that have joined forces in opposition to the invasion of Ukrainian territory, including the United States, South Korea, Taiwan and Japan. To circumvent the boycott, Russia transacts through third parties, such as China, in order to “escape” restrictive measures.

As transactions take place through third countries, laws regulating direct exports cannot moderate the flow of semiconductors to Russia. According to the report, the chips imported through intermediaries originate from Japan, which aligned itself with US economic sanctions in March 2022.

After the onset of geopolitical conflicts, dozens of global manufacturers stopped exporting components to Russia. AMD and Intel are some of the companies that have suspended product shipments. In Europe and Asia, HMD Global, Samsung and LG were some of the main companies that stopped supplying technologies to the country.

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06 May

In July last year, China suffered a new wave of trade sanctions from the United States for allegedly supporting Russia after it invaded Ukraine. Despite efforts to prevent it from having access to chips from other countries, Moscow still kept its stock supplied with products imported from Malaysia.

According to Nikkei Asiathere is still no regulation that prevents the indirect flow of goods to Russia, but it is possible that countries opposed to the Russian government will design new control measures for the most sensitive goods, such as semiconductors, fundamental to the military tactics of the Armed forces.

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