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Sanctions fizzle as chips keep flowing into Russia

by on26 May 2025


Official bans look tough, but processors turn up via backdoors

Despite the US waving its sanctions stick over Russia since the Ukraine invasion, chips are streaming into the country through a maze of unofficial networks. 

Russia’s official customs records claim US-made processors have practically vanished. Data from the Federal Customs Service, picked up by Kommersant, shows that Intel CPU imports fell by 95 per cent last year. AMD did slightly better, dropping only 81 per cent. That supposedly amounts to a measly 37,000 processors, a far cry from the 537,000 shipped in 2023.

However, Russian tech manufacturers tell a very different story. Lotos Group and Rikor, two major system builders, claim they’re not only getting chips, but in greater quantities than before. Rikor says it secured over 120,000 processors in 2024, a 30 per cent increase. Several firms say chip access has improved for the third year in a row.

The sanction enforcement effort is about as effective as a chocolate fireguard. Hong Kong remains a major smuggling hub, with one address reportedly responsible for billions in rerouted semiconductors. Malaysia and India are in on the act, often slapping misleading labels on products or hiding chips in innocuous shipments to bypass customs filters.

One exec told Kommersant that deliveries rarely include the word “processor” on the paperwork. That simple omission helps explain why official numbers look anaemic while factory bins are full.

Suppliers are warning that Russian buyers should brace for a 10 to 12 per cent price hike in 2025. Inflation and the ongoing US-China chip spat are pushing up costs. Still, prices for everyday processors haven’t spiralled just yet.

 

Last modified on 26 May 2025
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