Technology sanctions push Russia to search for microchips everywhere, even in breast pumps
Breast pumps seem to be the new hit in Kazakhstan. At least, according to Eurostat, their demand from the E.U. soared sixfold in the first half of the year even though Kazakhstan’s national birth rate fell more than 8% during the same period, Bloomberg reports.
The sudden growth in European exports can also be seen in other electronics, like washing machines and refrigerators. Besides Kazakhstan, the surprising export spike has occurred among other of Russia’s neighbors, especially Armenia. The boom in electronics is likely linked with Russia.
The West has imposed sanctions in nearly every sector of the Russian economy since 2014, when Russia annexed Crimea and began its war campaign in Ukraine. One of the blocks concerns the export of technology. At first, the ban dealt with military and some of the so-called dual-use goods and technology items that could contribute to Russia’s army. After Russia began its new phase in the war in February, the Western countries tightened the sanctions and restricted the global export of semiconductors to Russia.
The West has pushed the rest of the world to stop exporting electronic components to Russia, and the worldwide ban seems to be working. According to U.S. officials, at the end of June, global exports of semiconductors had plummeted by 90% since the ban.
The modern world doesn’t work without components like microchips. That’s why Russia tries to purchase them in every way, including stripping them from household goods. The officials in the U.S. and Europe say that Russia needs them urgently, not only for civilian manufacturing but also for its tanks and other military equipment.
“The Russian military is taking chips from dishwashers and refrigerators to fix their military hardware because they ran out of semiconductors. Russia’s industry is in tatters and its economy on life-support,” European Commission President Ursula von der Leyen said last month.
Kazakhstan, traditionally one of the closest allies of Russia, has vowed not to help its northern neighbor circumvent sanctions. The country in Central Asia tries to behave as neutrally as possible towards every point of the compass. However, there are no customs borders between Kazakhstan and Russia because they belong to the Euroasian Economic Union with three other ex-Soviet countries, Armenia, Belarus, and Kyrgyzstan. Therefore, it isn’t straightforward to define the final destination and the use of household electronics exported to Kazakhstan.
Many experts think the technology ban is the most crucial instrument to impact Russia’s economy. The example of getting chips from breast bumps shows that Russia can bypass sanctions, but it requires much extra effort and expense. In the long run, the situation will likely turn unbearable for Russia.
Nevertheless, there’s one possible ally that can save Russia. Until now, China hasn’t openly compensated Russia’s technology loss because it has not wanted to oppose the Western sanctions to protect its own market. Still, the situation might change soon. Last month the U.S. administration announced new extraterritorial restrictions on exporting advanced chips, semiconductor equipment, and related components to China. Now that Washington has begun a chip war with China, it can be easier for Beijing to rethink its position with Russia.
