Kremlin obtains missile chips via dummy companies while Trump stalls sanctions – NYT
The US has not imposed any new sanctions on Russia since Donald Trump has returned to office. This enables Russia to continue acquiring microchips and military components despite the restrictions imposed after the start of its full-scale invasion of Ukraine.
Source: The New York Times (NYT)
Details: Instead of increasing pressure, the Trump administration lifted some restrictions, including those on Karina Rotenberg, wife of Russian oligarch Boris Rotenberg. In addition, the US Justice Department disbanded the KleptoCapture task force, which had been responsible for identifying and seizing assets of individuals close to the Kremlin.
Over 130 newly registered companies in China, Hong Kong, and Singapore are openly advertising banned components for sale to Russia, according to trade and corporate registries. One such company, HK GST Limited, supplies chips used in Russian Kh-101 cruise missiles used in recent strikes on Kyiv.
An analysis by the New York Times shows that the US has not imposed any new restrictions on Russia since early 2025. Experts warn that without regular updates, sanctions lose effectiveness, while Russia actively develops new shadow import schemes.
Congress is already drafting a bill proposing a 500% duty on countries purchasing Russian energy. However, for now, European nations remain the primary drivers of sanctions policy, as US interest in deterring the Kremlin’s aggression appears to be waning.
Read also: Russia is importing ASML equipment in parts to produce microchips. Why aren't sanctions working?
Background:
- Kremlin leader Vladimir Putin has signed a decree allowing new foreign investors to invest in the country without restrictions on capital withdrawal.
- Despite EU and US sanctions, Russia has imported parts worth €1 billion for Boeing and Airbus aircraft during the years of its full-scale invasion of Ukraine.
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