Berliner Boersenzeitung - Tech sanctions on Russia a double-edged sword

EUR -
AED 3.931468
AFN 75.621904
ALL 100.232524
AMD 414.61044
ANG 1.925048
AOA 914.603793
ARS 967.444661
AUD 1.602121
AWG 1.926679
AZN 1.793207
BAM 1.955849
BBD 2.156654
BDT 125.50316
BGN 1.95818
BHD 0.40301
BIF 3071.377339
BMD 1.070377
BND 1.447136
BOB 7.380186
BRL 5.814392
BSD 1.068127
BTN 89.193746
BWP 14.395362
BYN 3.495488
BYR 20979.388273
BZD 2.152954
CAD 1.466363
CDF 3050.574705
CHF 0.95639
CLF 0.036076
CLP 995.458066
CNY 7.772325
CNH 7.803519
COP 4456.312213
CRC 558.314059
CUC 1.070377
CUP 28.364989
CVE 110.267777
CZK 24.956054
DJF 190.174789
DKK 7.465234
DOP 63.041587
DZD 143.800621
EGP 51.014285
ERN 16.055654
ETB 61.631252
FJD 2.400588
FKP 0.83982
GBP 0.845914
GEL 3.002431
GGP 0.83982
GHS 16.182407
GIP 0.83982
GMD 72.517963
GNF 9195.231541
GTQ 8.288209
GYD 223.335624
HKD 8.355758
HNL 26.420665
HRK 7.512374
HTG 141.573565
HUF 396.820498
IDR 17637.189757
ILS 4.020421
IMP 0.83982
INR 89.443856
IQD 1399.235234
IRR 45049.48867
ISK 149.210638
JEP 0.83982
JMD 166.344189
JOD 0.758579
JPY 171.059619
KES 138.323483
KGS 92.864518
KHR 4403.110873
KMF 492.962081
KPW 963.339398
KRW 1487.170913
KWD 0.328338
KYD 0.890122
KZT 497.142518
LAK 23479.59123
LBP 95649.608514
LKR 326.158213
LRD 207.325221
LSL 19.119881
LTL 3.160544
LVL 0.64746
LYD 5.17813
MAD 10.637568
MDL 19.119481
MGA 4836.121776
MKD 61.53655
MMK 3476.54259
MNT 3692.800591
MOP 8.584816
MRU 42.062059
MUR 50.136335
MVR 16.479822
MWK 1851.946633
MXN 19.386127
MYR 5.044696
MZN 68.177702
NAD 19.119881
NGN 1592.720909
NIO 39.32099
NOK 11.313713
NPR 142.709594
NZD 1.749354
OMR 0.41161
PAB 1.068127
PEN 4.064802
PGK 4.166105
PHP 63.012851
PKR 297.46989
PLN 4.328741
PYG 8040.202457
QAR 3.895698
RON 4.979929
RSD 117.058448
RUB 94.352376
RWF 1402.435314
SAR 4.017427
SBD 9.049443
SCR 15.713194
SDG 643.296452
SEK 11.248838
SGD 1.450578
SHP 1.352368
SLE 24.455226
SLL 22445.271562
SOS 610.415371
SRD 32.964335
STD 22154.641839
SVC 9.346235
SYP 2689.354661
SZL 19.111481
THB 39.288185
TJS 11.354086
TMT 3.757023
TND 3.349284
TOP 2.525822
TRY 35.149734
TTD 7.248183
TWD 34.653079
TZS 2803.770601
UAH 43.202688
UGX 4005.100851
USD 1.070377
UYU 42.071059
UZS 13500.339947
VEF 3877496.742894
VES 38.884607
VND 27246.445332
VUV 127.077266
WST 2.997714
XAF 655.973518
XAG 0.036234
XAU 0.000461
XCD 2.892747
XDR 0.81062
XOF 655.973518
XPF 119.331742
YER 267.968757
ZAR 19.231104
ZMK 9634.673406
ZMW 27.210685
ZWL 344.660942
  • RBGPF

    0.0000

    56.5

    0%

  • BCC

    -0.3100

    122.41

    -0.25%

  • RELX

    -0.0500

    45.6

    -0.11%

  • SCS

    1.1100

    13.29

    +8.35%

  • NGG

    -0.7200

    57.13

    -1.26%

  • RIO

    -0.5200

    66.4

    -0.78%

  • CMSC

    -0.0107

    24.44

    -0.04%

  • BCE

    -0.1900

    32.6

    -0.58%

  • RYCEF

    -0.1000

    6.03

    -1.66%

  • JRI

    -0.0300

    12

    -0.25%

  • CMSD

    -0.0700

    24.17

    -0.29%

  • VOD

    -0.0400

    9.05

    -0.44%

  • AZN

    0.3200

    78.88

    +0.41%

  • BTI

    0.2000

    31.7

    +0.63%

  • GSK

    -0.2800

    40.48

    -0.69%

  • BP

    -0.2000

    35.51

    -0.56%

Tech sanctions on Russia a double-edged sword
Tech sanctions on Russia a double-edged sword

Tech sanctions on Russia a double-edged sword

Sanctions to limit Russia's access to tech components like semiconductors may temporarily hobble its defence industry, but analysts said they risk boomeranging on the West if Russia withholds key raw materials.

Text size:

Such a move risks pushing Moscow to rely more on China, which will further reduce the West's leverage.

The sanctions the West adopted on Russia over its invasion of Ukraine have mostly targeted the financial sector, but some have begun to limit its access to high-tech components.

Japan, which is home to industrial giant Fujitsu, said Friday it will block exports to Russia of "general-purpose goods such as semiconductors".

While the EU is still considering what steps to take, the United States imposed on Thursday a ban that targets the defense and aerospace sectors and includes semiconductors, computers, telecommunications, information security equipment, lasers, and sensors.

The United States can impose its decisions beyond its borders by threatening to shut recalcitrant companies and countries off from access to key US technology.

That is what the Trump administration did in 2019 when it banned Chinese smartphone maker Huawei from using semiconductors and software that use US technology.

Taiwanese semiconductor manufacturer TSMC, which was a major supplier of chips to Huawei, had to cut off supplies as it used US technology in their manufacturing.

Huawei had to turn to Chinese chip manufacturers, which didn't have the capacity to build semiconductors with as much processing power.

"Of course Russia could strengthen its ties with China but this doesn't mean the transition could happen overnight," said Francisco Jeronimo, an analyst at market intelligence firm IDC.

"Just think about how long it took for Huawei, how tough it is to come up with a solution different from an American company," he told AFP.

However Jeronimo noted that Russia may not be as dependent upon US technology as is believed.

The Russian government announced plans several years ago to shift the public administration off Windows and develop alternatives for the consumer market as well.

- Shortages -

"China is facing exactly the same challenges," said Jeronimo.

"They have been pushing their own technology."

Russia accounts for only one percent of global semiconductor sales, according to the industry's trade association, which means manufacturers will suffer little impact from a loss of sales.

But Moscow could disrupt the global supply chain for semiconductors if it adopts counter-sanctions to block exports of raw materials key for their manufacturing.

At the beginning of February, experts from Techcet, a technology consultancy, published a report showing that the US is dependent upon Russia for imports of the gases neon and C4F6, plus palladium, which are used to manufacture semiconductors.

"Russia is a crucial source of C4F6 which several US suppliers buy and purify for use in advanced node logic device etching and advanced lithography processes for chip production," said the Techcet report.

It said the US uses about 8 million tonnes of C4F6 per year.

Russia is also the top supplier of neon gas -- a side product of steel manufacturing -- which is purified in Ukraine before being exported.

Neon gas is used for the precision laser etching of circuits on silicon wafers.

Russia also produces a third of the world's palladium, a metal used in computer memory chips and catalytic convertors in car exhaust systems.

Supply disruptions in these materials could have consequences for semiconductor manufacturers, which were already having difficulty meeting the spike in demand during the pandemic.

Global auto manufacturers have suffered greatly from the chip shortage, having to idle production lines.

Any disruptions in raw supplies for the semiconductor industry will and the shortages of chips "will definitely last a lot longer. and consumers will pay the price with the device they want to buy," said Jeronimo.

(P.Werner--BBZ)