Russia receives sanctioned equipment through Hong Kong that is used to manufacture drones and other weapons.

The New York Times reported on this.

According to the newspaper, Russia has received $4 billion worth of chips and sensors since the start of its full-scale invasion of Ukraine.

Most of them were shipped from Hong Kong, where there is a powerful system of front companies that export equipment. Russia uses it to produce weapons, including drones, cruise missiles, and more.

The re-export plan is quite simple: the company buys Western chips, sensors, and cameras, indicating the delivery point as Hong Kong, and resells it to Russia upon arrival.

Some companies, such as Olax Finance and Rikkon Holding, located in a multi-story building at 135 Bonham Strand in Hong Kong, are not subject to US sanctions, allowing them to freely purchase the necessary equipment.

According to the New York Times investigation, there are no company representatives in the building itself, and the doors to their offices are locked. In addition, it was learned that the offices themselves are empty. Besides, there are advertisements for air conditioners.

According to an analysis of Russian customs data, corporate records, domain registrations, and sanctions data, Russia has received chips and other semiconductors worth more than $4 billion from more than 6,000 companies.

With so many companies, and new ones being created, working for Russia, it is very difficult to block them in a timely manner.

“We have lost control over chip production,” Elina Rybakova, an economist at the Peterson Institute for International Economics, stated.

The publication also notes that some intermediary companies are part of long-standing networks of offshore firms owned by Russian businessmen.

Militarnyi previously reported that Chinese companies export military equipment to Belarusian companies under European and US sanctions.