Multiple channels to bypass sanctions? Chips from European and American companies such as Intel, AMD, and TI can still be sold to Russia

According to Reuters, although the West has imposed chip sanctions on Russia, many traders still bypass the regulations through other channels.

The report pointed out that in March this year, Azu International, a new trading company registered in Turkey claiming to be a wholesaler of IT products, began shipping American computer parts to Russia a week after registration.

Over the next seven months, the company exported at least $20 million worth of components to Russia, including chips made by U.S. manufacturers, according to Russian customs records.

Turkish businessman Gokturk Agvaz, one of the founders of Azu International, also managed another IT wholesaler in Germany, Smart Impex GmbH, which also sold American products to Russian customers before the war.

Gokturk Agvaz said Smart Impex, a company registered in Germany, needs to stop exporting to Russia to comply with EU trade restrictions, but can sell to Turkey, which is a non-EU country that does not enforce most Western sanctions against Russia . "That's why we can't export to Russia, only to Turkey," he said. Asked about Azu International's sales to Russia, he replied: "It's our trade secret."

Russian customs records show that in addition to Intel and AMD, Western chips imported into Russia include Texas Instruments, Analog Devices and Infineon.

An Intel spokesman said the company "takes the findings very seriously and we are investigating the matter." The spokesperson said Intel complies with all sanctions and export controls against Russia and "has a clear policy that its distributors and customers must also comply with all export requirements and international law."

Likewise, a spokesperson for AMD said the company "strictly complies" with all export regulations and has suspended sales and support of its products in Russia. "This includes asking all AMD customers and authorized resellers" to stop selling AMD products to Russia.

Infineon also said it "instructed all distribution partners worldwide to block deliveries and implement strong measures to prevent any diversion of Infineon products or services in violation of sanctions."

Texas Instruments said it had not shipped to Russia since late February. ADI did not respond to a request for comment.

A spokesman for the U.S. Department of Commerce said, “Since the invasion began, Russia’s semiconductor acquisitions from all sources have been cut by nearly 70 percent due to the actions of an unprecedented coalition of 38 countries that joined forces to respond to Putin’s aggression. Russia is working hard to circumvent It's no surprise that it's in control."

But a Reuters review of Russian customs data found that the declared value of Russian imports of semiconductors has actually risen sharply since the invasion. The Commerce Department analyzed different data and could not comment on Reuters' findings, the spokesman said.

Putin's office and Russia's industry and trade ministry did not respond to requests for comment.