Sanctions Bypassed: Belarus’ Microchip Pipeline to Russia

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As Russia escalates its war in Ukraine, the flow of Western technology into its military reveals alarming weaknesses in global sanctions, demanding urgent accountability and enforcement.

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November 27, 2024

Belarusian companies are secretly supplying Russia with advanced Western-made microchips, thereby sustaining the production of fighter jets, drones, and missiles used in the war against Ukraine, according to the Belarusian Investigative Center (BIC). This finding was made with the assistance of a group of Belarusian hackers known as CyberPartisans.

The investigation shows how Belarusian companies funnel the Western-made components into Russia’s military supply chain, with ties stretching from President Aleksandr Lukashenko’s allies to Russian arms producers.

These firms exploit intricate logistics routes to circumvent restrictions, importing Western microchips and relabeling them before transferring them to Russian defense manufacturers via intermediaries in Europe or Asia.

Among the exported components are the U.S.-made Intel chips found in Russian Su-35S and Su-34 fighter jets, Kalibr cruise missiles, and Korsar drones. Despite Western bans, Belarusian firms capitalize on loopholes to sustain Moscow’s military aggression against Ukraine.

Some companies, like Pervy Kontinent, established after Russia’s full-scale invasion of Ukraine, sold $155,000 worth of chips to Russian companies under U.S. and EU sanctions. These buyers include defense firms linked to Roskosmos and Kalashnikov, critical components of Russia’s military-industrial complex.

One key Belarusian firm, Alexsvit Ltd., shipped over 130 banned microchips to Russia between 2022 and 2023. Owned by Sergei Borisyuk, a former top Belarusian customs official, Alexsvit’s revenue has tripled since the war began. The company is also linked to longtime Lukashenko ally Viktar Sheiman, further tying the operation to Belarus’s political elite.  

Another company, Logisticheskaya Kompaniya Vostok, exported more than 215,000 microchips to Russia, including 1,500 U.S.-made components. The firm’s owner, Aliaksei Matveyeu, has links to Sergei Teterin, a Lukashenko confidant implicated in prior sanctions evasion schemes.

Among the Russian buyers are defense contractors such as Baltelektron, sanctioned by the U.S. for supplying dual-use electronics to the Russian military. This company sourced components from three Belarusian firms—Chip Express, Chipimport, and Elektrosale—operated by a network of Belarusian businessmen. Another Belarusian firm, SD Electro, supplied microchips for Su-30SM jets and Orion drones to Green-Chip, a Russian company tied to missile and nuclear system projects.

The findings spotlight systemic failures in sanctions enforcement and the ability of Belarus to act as a middleman for Russia’s war machine. BIC reached out to the U.S. Bureau of Industry and Security and other Western regulators responsible for enforcing restrictions on Belarus and Russia but received no response before the investigation's publication.

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