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Financial Times: UK firm has exported $1.2 billion of electronics to Russia despite sanctions

by The Kyiv Independent news desk April 7, 2023 9:08 PM 2 min read
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British firm Mykines Corporation reportedly exported $1.2 billion worth of technical equipment, including high-end microchips, telecom equipment, and servers, to Russia since the beginning of its full-scale invasion of Ukraine, potentially violating sanctions on export, the Financial Times reported.

The company, registered in London, reportedly exported at least $982 million in goods subjected to restrictions.

The sale of such goods to Russia without the British government's consent may constitute a breach of its sanctions, despite their routes, mainly through China.

A UK government spokesman told the Financial Times that authorities were taking potential breaches "very seriously" but did not discuss the details of how they enforced sanctions.

“All businesses registered in the UK are bound by law to comply with the Russia sanctions regime," the Financial Times' source said.

The newspaper's investigation found that the person listed as having “significant control” in the firm was Vitalii Poliakov, a 53-year-old Ukrainian.

Records obtained by the Financial Times show the company's exports in Russia suddenly took off after the invasion on Feb. 24.

G7 member states reportedly discussed in February whether to sanction companies in China, Iran, and North Korea that are providing Russia with parts and technology that have military purposes, Bloomberg reported, citing its sources.

Russia continues to access foreign chips and technology through intermediaries like Iran or North Korea, U.S. Assistant Secretary of Commerce for Export Administration Thea Kendler said.

China previously hit back at claims that some of its state-owned firms may be helping Russia’s war in Ukraine, saying Washington should stop sending weapons if it wants the war to end, Bloomberg reported.

NOS investigation: Dutch-made microchips found in Russian weapons
Millions of microchips made by Dutch companies reportedly ended in Russia since the beginning of Russia’s full-scale invasion, despite heavy sanctions on technological goods, an investigation by Dutch newspaper Nederlandse Omroep Stichting (NOS) showed.
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