The chip industry has become so crucial, in particular when it comes to sort of the defense sector and Putin's war efforts. Even before the invasion of Ukraine last year, the US Commerce Department had already started to clamp down a bit on this trade. The chip's trade has obviously become increasingly geopolitically significant.
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
Listen to The Big Take podcast every weekday and subscribe to our daily newsletter: https://bloom.bg/3F3EJAK
Have questions or comments for Wes and the team? Reach us at bigtake@bloomberg.net.
See omnystudio.com/listener for privacy information.