Tech industry starts to halt exports to Russia

Sales of tech to Russia are beginning to stop as a result of sanctions against the country, following its invasion of Ukraine.

The sanctions were announced by the US government on February 24 and imposed restrictions on semiconductors, computers and other dual-use commodities. Now, these sanctions are taking effect and imports into Russia are stopping (via PCGamer).

The sanctions also expanded the Foreign Direct Product Rule which requires manufacturers using American made tools and software to obtain specific licences from the US government before they can trade with Russian companies that directly support the military.

A statement made to Tom’s Hardware from Intel says, “Intel complies with all applicable export regulations and sanctions in the countries in which it operates, including the new sanctions issued by OFAC [Office of Foreign Assets Control] and the regulations issued by BIS [Bureau of Industry and Security].” AMD has also reportedly halted sales of processors to Russia.

Even though Russia has its own companies that design chips, 92 per cent of the world’s advanced semiconductor manufacturing capacity are in Taiwan, with South Korea holding the remaining eight per cent, according to Reuters.

On February 27 the economy minister of Taiwan announced that it was joining the list of countries imposing sanctions on Russia, meaning that it will become very difficult for Russia to import chips needed for the production of technology, both civilian and military.

The minister said that “Taiwan’s semiconductor companies are complying with government export controls to Russia, put in place as part of sanctions on Moscow for invading Ukraine.”

It was added that “domestic semiconductor manufacturers have also expressed that they will abide by the laws and closely cooperate with government measures.”

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