Swiss microchips end up in Russia despite sanctions, says RSI

Swiss microchips have reportedly ended up in Russian communication systems in eastern Ukraine. Copyright 2023 The Associated Press. All Rights Reserved.

Thousands of Swiss microchips have ended up in Russia since Switzerland imposed export bans on some military and technological goods in Mach 2022, according to an RSI investigation.

Between March 2022 and August 2022 more than 1,000 shipments from Swiss-based Traco Power arrived in Moscow through third countries, for a total value of CHF22,600, according to a report published on FridayExternal link by the Italian language service of the Swiss public broadcaster. These were mainly electronic converters and microchip systems.

According to a report by the Independent Anti-Corruption Commission of Ukraine (NAKO) published last February, some of these items were found in Russian communications systems used in Donbas, eastern Ukraine, which is a major Russian target in its war. A previous investigation had already unveiled how some Swiss microchips were found in Russian drones.

The evasion of sanctions through third-country companies that do not adhere to Western measures is a broad phenomenon that is difficult to counter, according to RSI. Most of these high-tech products have been shipped by Chinese and Turkish companies, mainly from Hong Kong and Istanbul. They include BRK Logistics Transportation and Trade Limited Company in Transit Transaction and Smart Trading Tasimacilik San Ve LTD. The latter has recently been sanctioned by the US.

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Traco Power said that it had “immediately suspended all shipments and commercial relations with Russia, including via third countries”. “Traco Power products which have been used for any purpose in Russia cannot have come from our company after February 28, 2022, when EU sanctions came into force,” it stated.

The State Secretariat for Economic Affairs (SECO) has said one of their main challenges was to “carry out export controls to prevent Swiss products from being diverted to Moscow through third countries”. But SECO added that “it should be the Swiss exporter’s responsibility to know their final clients.”