As export controls have been ramped up by Washington, the big US companies that are part of the chip's trade have had to ramp up their own internal compliance efforts. The key component is establishing companies outside of Russia in jurisdictions that US chip maker wouldn't deem as sensitive. If one shell company is recognized and shut down, another one is set up. It's a constant game of obfuscation to try to continue this really important supply chain.
US sanctions against Russia are supposed to cut off Moscow’s access to all kinds of goods, including semiconductors, which are used in missiles and drones. But US officials allege a secret supply chain has illegally funneled these chips, some of them American-made, to Russia, where they’ve been used in weapons deployed against Ukraine.
Bloomberg reporter Ben Bartenstein joins this episode to talk about one alleged chip smuggling scheme. And US national security editor Nick Wadhams explains why sanctions can slow—but not always stop—Russia and other sanctioned nations from getting what they want.
Read more here: Web of Secret Chip Deals Allegedly Help US Tech Flow to Russia
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