The sanctions imposed following the 2022 invasion of Ukraine aimed to disrupt Russia's military capabilities by limiting its access to advanced chips are working, as Russian entities can no longer get chips directly from American, European, Japanese, and Taiwanese companies. Despite these efforts, Russia continues to obtain advanced processors mainly through indirect channels, primarily involving Chinese distributors, who now control 89% of the market, according to a report from the American Enterprise Institute.
The sanctions have forced Russia to pay nearly double for semiconductors compared to pre-war prices due to the need to establish new, covert supply chains. The company paid $1,411 per kilogram of chips in 2021 and had to pay $2,730 per kilogram in 2023. Notably, about 89% of semiconductor products Russia acquired since the onset of the conflict have been sourced from China. Surprisingly, Russia even obtained some chipmaking equipment from South Korea and Taiwan.
