Tech

How will US sanctions affect Russia’s technology sector


Last November, Tech giant Yandex launched Chervonenkis, Russia’s most powerful supercomputer and the 19th most powerful commercial computer on the planet. Chervonenkis, which Yandex uses for training artificial intelligence algorithms for applications like web search and translation, built by linking together more than 1,500 chips from the US company Nvidia.

Earlier this week, Russia’s Interior Ministry said it was having trouble sourcing the homegrown chips it needed to use, and as a result it was considering a return to chips made by the Russian government. Intel, according to CNewsa Russian store.

Russiadependence on Western technology, especially for French friesis at the heart of sanctions announced Thursday by US President Biden and his allies in response to Russia’s invasion of Ukraine.

Biden said in a speech to the nation that restrictions on the import of important Russian technology, including semiconductors, will limit “access to finance and technology for strategic sectors of the economy and reduce energy industrial power of the country for many years to come. He said the sanctions would hurt Russia’s ability to modernize its military, aerospace and space programs and would be a “severe blow to Putin’s long-term strategic ambitions.” .

Also on Thursday, the Commerce Department banned American companies from doing business with 49 Russian entities with ties to that country’s military and said allies would follow suit. The ministry said the new regulations cover microelectronics, telecommunications equipment, sensors, avionics, navigation and marine equipment.

Samuel Bendett, Russia technology expert at CNA, a military organization, said: “Russian industry as a whole has benefited from the relatively open trade flow of microelectronics, semiconductors and other high-tech components. “This can really have a very significant impact.”

For nearly a decade, the Kremlin has Referral measures designed to free Russian companies and infrastructure from cutting-edge technology, including French fries. So far, the effort has had limited success.

The US strategy echoes recent efforts to limit China and its tech companies. In 2020, the White House impose restrictions on chip exports for Chinese companies, including Huaweiaccused of espionage and some big AI companies that it said it assisted the government in monitoring Muslim minorities. Chip sanctions have certainly hurt Huawei, which has saw its smartphone business take a hit. They have also triggered an ambitious but challenging effort by the Chinese government to build a semiconductor industry that can manufacture its own advanced components.

Chip sanctions can little immediate harm to Russia. But the ban could also be less damaging for chipmakers in the US, Europe and Japan. According to World Semiconductor Trade Statistics (WSTS), Russia accounts for less than 0.1% of global chip purchases.

John Neuffer, CEO of Semiconductor Industry Associationan agency representing US chip firms.

Engaging in critical technologies, such as semiconductors, could still harm Russia’s progress as well as its military and cyber capabilities. And with the participation of the US and its allies including the EU and Japan, it will be harder for Russia to evade sanctions.



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