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NYT “There are many gaps in semiconductor sanctions to block Russian weapons production”

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The New York Times (NYT) reported on the 18th (local time) that Russia is importing electronic products such as semiconductors for weapons production from the West, circumventing Western sanctions, and it has been revealed that it is not easy to block them. Here is a summary of the article.

At the end of last month, intelligence circulated that millions of dollars worth of banned tech products had been brought into Russia through a loophole in sanctions. US and EU officials discussed this.

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High-ranking customs officials pointed out that semiconductors and other electronic components were imported through Armenia and Kazakhstan, documents dated March 24 show. Officials have designated eight semiconductors and electronic products as sensitive items that Russia uses to make weapons such as cruise missiles.

The United States and Europe have not been able to win a firm victory in the war to block Russia’s semiconductor imports. It is true that sanctions imposed a year ago have reduced some of Russia’s weapons production capacity, but Russia is still importing a lot of electronic components.

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“I think Russia is having great success in blocking its ability to maintain and reorganize its military,” said Alan Esteves, director of export controls for the U.S. Department of Commerce’s Bureau of Industry and Security. But it is not easy,” he said.

In fact, exports of these components directly to Russia by the United States and its allies have completely disappeared. However, according to customs statistics, some countries are exporting these components to Russia. Russia’s semiconductor imports, which fell sharply immediately after the invasion of Ukraine, gradually recovered and recovered to 50% of the pre-war level between October and January.

Ukrainian War Year 1

The United States has been trying to block bypass imports, such as semiconductors, from Russia by sanctioning companies in Iran, China, and Canada. Even exports of toasters, dryers, and microwave ovens containing semiconductors have been banned, and a “concerned technology blocking team” has been established to investigate and punish illegal technology exports.

However, blocking efforts are not easy because there are no products that do not use semiconductors. In 2021, the number of semiconductors used worldwide reached 1.15 trillion, and the inventory was enormous. China, which has not participated in sanctions, is producing more and more advanced semiconductors.

The Semiconductor Industry Association, a group of conglomerates in semiconductor production, says that it is virtually impossible to control complex semiconductor distribution even though it complies with US sanctions.

Until recently, Russia has been producing weapons using stockpiled before the war, but as stocks are exhausted, it is eager to introduce them.

According to documents released on the 18th by the Conflict Weapons Research Institute (CWR), which analyzes Russian weapons, semiconductors manufactured after the war were found in captured Russian weapons.

Semiconductors produced by American companies in their factories in the United States and abroad were found in Lancet drones found across Ukraine in February and March.

Semiconductors produced in August were not illegally exported because they were not included in the export restricted items until last September. However, the fact that the use of these semiconductors was revealed shows that Russia’s semiconductor stock is running out.

Russia imports American and European products through Central Asian countries such as Armenia and Kazakhstan. According to a document prepared by the U.S. Department of Commerce’s Bureau of Industry and Security last year, Armenia imported 515 percent of semiconductors from the U.S. last year and 212 percent from Europe compared to 2021, and exported 97 percent of the semiconductors it imported to Russia.

Another document lists eight sensitive items, including the field programmable gate array (FPGA) board used in the Russian KH-101 cruise missile.

The US and EU are trying to stop exports by sending officials to countries exporting semiconductors to Russia recently. For example, to prevent transshipment into Russia through the Turkiye Free Trade Zone and to prevent Russian and Belarusian airliners from flying to Turkiye Airport.

Source: Donga

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