August 28, 2024
Max Kossek and Ian Stewart
The following is an excerpt from TradeCompliance.io.
Lagging domestic microelectronics production has forced Russia to continue to rely on foreign-sourced electronics for its weapon systems. This article examines where Russia imports these electronics from and how this has shifted since the February 2022 invasion of Ukraine. Hong Kong and China have become the main suppliers post-invasion, though the electronics are still predominantly Western-branded electronics. Sources differ over the scale of Russian imports. Several indicators point to the increasing cost and complexity of Russian procurement, demonstrating the effectiveness of sanctions and export controls.
Since Russia’s full-scale invasion of Ukraine in February 2022, the U.S. and its allies have imposed strict export controls, and a series of sanctions targeting sectors and entities involved in furthering Russia’s military aims. The U.S., European Union, Japan, and United Kingdom have also jointly developed a Common High Priority List (CHPL) of Harmonized Digit (HS)—a classification system of descriptors used to signify different sorts of goods for customs purposes —codes that include items at a high risk of illegal diversion by Russia. This high-priority items list includes various classifications of integrated circuits, microelectronics, and machine tools that Russia struggles to produce itself or views as valuable for its war aims.
Tier 1 items are of the highest priority “due to their critical role in the production of advanced Russian precision-guided weapons systems, Russia’s lack of domestic production, and limited global manufacturers”. Four HS codes are included in Tier 1:
- Electronic integrated circuits as processors and controllers (HS 8542.31);
- Electronic integrated circuits as memories (HS 8542.32);
- Electronic integrated circuits as amplifiers (HS 8542.33); and
- Other types of electronic integrated circuits (HS 8542.39).
Continue reading at TradeCompliance.io.
