On 10th September 2024, the US Senate’s Permanent Subcommittee on Investigations called on four American companies to testify about the use of their products in Russian weapons.
This inquiry arose after it was found that more than 40% of nearly 2,500 components in Russian weapons on the Ukrainian battlefield were sourced from these companies. The breakdown of components showed approximately 16% from Analog Devices, 15% from Texas Instruments, and 5% each from AMD and Intel.
Senator Richard Blumenthal, Chairman of the Subcommittee, stated, “These are the rough numbers; they may be off by one or two [percent], but you get the idea, this phenomenon is undeniable.” The presence of these components raises concerns about the effectiveness of sanctions aimed at crippling Russia’s military capabilities.
Evasion of Sanctions
Following Russia’s invasion of Ukraine in February 2022, the US and its allies imposed strict sanctions on Russia, aiming to cut off its access to critical technological inputs. These measures were designed to weaken Russia’s industrial base and restrict its strategic ambitions.
The sanctions included financial restrictions and export controls intended to limit Russia’s ability to procure advanced technology. Despite these efforts, Russia has managed to stabilise its economy since 2023, with a GDP growth of 3.6% following a 1.2% contraction in 2022.
The Carnegie Endowment for International Peace has warned that while Russia’s wartime economic stability may persist, it is not expected to last indefinitely.
The continued use of American components in Russian weapons has exposed gaps in the sanctions regime, undermining efforts to limit Russia’s military aggression.
Senator Blumenthal expressed concern about the use of American technology in the war against Ukraine, stating, “Despite two years of savage, criminal aggression, and two years of sanctions, American technology is still fuelling Russia’s murderous war against Ukraine.”
Calls for Improved Audits
Members of the subcommittee pressed representatives of the four US companies to commit to establishing new audit protocols when dealing with potential buyers.
These additional compliance procedures would involve more stringent verification of customers and their intended use of the products. However, implementing these measures faces significant challenges due to the complexity of global supply chains.
Michelle Stout, Vice President for Global Trade Compliance and Government Affairs at Analog Devices, highlighted the difficulties in stopping the diversion of microchips: “Unfortunately, stopping diversion completely is impossible because of the ubiquity of chips in modern economies, the sprawling nature of chip markets and determined efforts by bad actors to circumvent regulations.”
The Kh-101 Missile Incident
Senator Blumenthal referenced a specific incident involving a Russian Kh-101 cruise missile, which struck a children’s hospital in Kyiv on 8th July, resulting in the deaths of medical staff and children.
The missile was found to contain American-made components, even though it had been manufactured in the Russian Federation only weeks, or possibly days, before the attack. This case highlights the challenges in tracing and controlling the flow of microchips in the global supply chain.
Tiffany Scurry, Chief Compliance Officer at AMD, noted the difficulty in tracking the use of products over time: “There are a significant amount of components that were already legally in the stream of commerce before the invasion of Ukraine. When teams are able to trace components found on the Ukrainian battlefield, they are often old – sometimes decades old.”
Challenges in Tracing Supply Chains
The subcommittee’s investigation highlights the complexity of modern supply chains and the difficulty in ensuring that microchips do not end up in the wrong hands. Despite the efforts of these companies to comply with export controls and sanctions, the proliferation of their products in Russian weapons indicates a need for improved regulation and oversight within the semiconductor industry.
Senator Blumenthal emphasised the moral and potential legal responsibility of these companies, stating, “Your products may be tiny, but your culpability is huge. In moral and perhaps legal terms, you bear deep responsibility.”
He further indicated that the investigation would continue to determine whether the failure to prevent the diversion of these products to Russia was due to wilful ignorance or other factors.
In response to the investigation, a spokesperson for Intel stated, “We do not do business in Russia, and we operate in strict accordance with export laws, sanctions and regulations in the US and every jurisdiction in which we operate. We hold our suppliers, customers and distributors accountable to these same standards.
“Intel is diligently working to track and mitigate the potential diversion of our products, including actively coordinating with non-governmental organisations, the US and other governments to identify and stop this activity.”
Analog Devices, Texas Instruments, and AMD did not provide a comment.
The findings of this investigation point to a broader challenge in global trade and the need for enhanced mechanisms to monitor and control the flow of sensitive technologies.
RUSI report – ‘Silicon Lifeline: Western Electronics at the Heart of Russia’s War Machine’
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