Espreso. Global

Armenia: Logistical hub for Russia's sanctions evasion scheme to support Putin's war?

11 December, 2023 Monday
20:00

Russian missiles are increasingly incorporating Western technology, raising concerns about the effectiveness of sanctions. Moscow appears to be sidestepping trade restrictions by enlisting the support of third-party countries

client/title.list_title

Insight News analyzed the allegations of Armenia being Russia’s hub for evading sanctions.

There has been extensive discussion among experts about allegations that Armenia is serving as a crucial supply hub for Putin in Russia's conflict with Ukraine.

Armenian firms involvement in Russia’s sanctions evasion

Recent reports indicate that Armenian companies are involved in the re-export of sanctioned goods to Russia via the Batumi-Novorossiysk sea route. The Armenian shipping company is said to be transporting 600 containers with a total weight of 6 tons to Russia every week via Georgian ports. Nicholas Chkhaidze, a research fellow at the Baku-based Topchubashov Center, provided this information.

This intricate Russo-Armenian operation covers a wide range of items, including automobiles, Western-made spare parts, and medical equipment. Vehicles, particularly of American origin, are frequently re-exported, typically through Georgian ports to Armenia. After registration in Gyumri, the vehicles are then re-exported to Russia, again passing through Georgia. These activities cast doubt on the effectiveness of sanctions imposed on Russia.

C&M International LLC operates the Batumi-Novorossiysk sea route with the participation of the Armenian Shipping Company and Black Maritime Forwarding LLC. Georgian companies, possibly unaware of the origin of the goods, are using Armenia to evade sanctions.

Armenian exports to Russia jumped 187% from 2021 to 2022, with speculation that Armenia plays a role in diverting Western products to Russia, helping Moscow evade sanctions. Armenia's strategic location makes it an important transit route between Western nations and Russia.

EU’s plans to penalize countries that help Russia circumvent sanctions

US and EU authorities uncovered a notable increase in the shipment of electronic components to Russia, identified as crucial for weapons production, particularly in the creation of Russian cruise missiles, as reported by the New York Times in April 2023.

Documentation obtained by the New York Times disclosed that senior tax and trade officials observed a rise in the sale of chips and electronic components to Russia through intermediary nations, notably Armenia and Kazakhstan. They provided details on the transit of eight highly sensitive chip types and other components considered vital for weapon manufacturing, including Russian cruise missiles deployed in attacks on Ukrainian cities and civil energy infrastructure.

Surge in electronic components and microchip imports

US and EU officials detected a surge in critical electronic components being delivered to Russia through third countries like Armenia. Armenia increased imports of microchips from the US by 515%, with 97% of these products shipped to Russia.

Armenia's imports of microchips from the US increased by 515%, with a significant portion re-exported to Russia, contributing to the $5 billion trade volume between Russia and Armenia in 2022.

Despite limitations on specific chips, Russia continued producing weapons with Western components after the start of the Ukraine war, as documented by Conflict Armament Research.

While Armenia considers changing its geopolitical orientation, business with Russian companies continues, and the country maintains pro-Russian economic policies.

France's decision to supply weapons to Armenia, a Russian ally, raises concerns about Western military technology ending up in Russia's hands.

Western technology in Russian cruise missiles

An investigation by Reuters in December 2022 highlighted how Russia circumvented sanctions by obtaining microchips from Western companies, even amidst sanctions imposed by the US and EU. Despite Western efforts to limit Russia's access to semiconductors, clear success has yet to be achieved, allowing Russia to continue evading sanctions and accessing vital technology components.

As the US and EU mobilize to provide anti-missile systems to Ukraine, Russia persists in deploying Western technologies in its attacks. The failure to prevent Russia from acquiring Western technologies for its armament poses a threat to Ukraine's victory and brings Putin's war closer to the EU's frontiers.

Tags:
Read also:
  • News
2025, Friday
24 January
12:37
EU supports Zelenskyy’s call for U.S. peacekeepers, seeks to persuade Trump — media
12:15
OPINION
Kremlin unfazed by Trump’s ultimatum remarks
11:54
Exclusive
Russia increases activity in Donetsk, tanks likely headed to Pokrovsk — Center for Occupation Studies
11:38
Review
North Korea's new missiles to Russia, Ukrainian forces' operational encirclement risk. Serhiy Zgurets' column
11:13
Review
Gravehawk: UK's secret weapon in Ukraine proving a graveyard for Russian missiles and drones
10:56
Exclusive
We do not know what "jokers" Putin holds — Ukrainian general
10:35
Exclusive
Negotiations must demand Russia’s withdrawal from both Ukraine, Belarus — Belarusian opposition leader
10:12
North Korea boosts troop training for deployment to Russia — South Korean army
09:55
Civilian casualties reported after Russian drone attack on high-rise
09:34
Russia loses 1,500 troops, 39 artillery systems, 11 armored vehicles in one day of war in Ukraine
2025, Thursday
23 January
21:35
Exclusive
Trump can pressure Putin into peace talks with Ukraine - Belarusian opposition leader Tsikhanouskaya
21:20
Ukraine dismisses question of Lukashenko’s legitimacy as irrelevant - MFA
20:54
Exclusive
No traditional European peacekeeping forces can be deployed in Ukraine, international expert says
20:35
Interview
'Belarus, like Ukraine, must not be left to Putin': interview with Sviatlana Tsikhanouskaya
20:14
Exclusive
Putin won’t be able to hold occupied territories if Russia’s revenue is cut – political analyst
19:53
Exclusive
North Korea may provide Russia with 150 ballistic missiles, equal to Moscow’s stock of Iskanders
19:35
OPINION
Hybrid ultimatum for Putin
19:14
Russian forces execute 6 Ukrainian POWs in Donetsk region: Ukraine launches investigation
18:56
Rutte supports Trump's statements on further sanctions against Russia
18:35
Exhibit on Russia’s war against Ukraine opens at Davos World Economic Forum
18:16
Exclusive
Russian assets may be unfrozen after January 31 - Espreso correspondent
17:55
OPINION
Why are generals being prosecuted?
17:35
Ukrainian forces battle nonstop near Velyka Novosilka, Donetsk region, to prevent encirclement
17:27
Updated
U.S. troops should be part of peacekeeping forces in Ukraine, Zelenskyy says. Russia threatens escalation
17:12
UAE-Russia emerging crypto network threatens to circumvent sanctions
16:55
Russian troops set fire to 100 of their soldiers near Chasiv Yar — Luhansk troop grouping
16:33
Ukraine serves suspicion notices to Russian generals for 2022 Sumy bombing
16:13
Sweden, Ukraine agree on bilateral defense industry project deal
15:55
Third group of volunteers in Poland to join Ukrainian Armed Forces in February
15:32
OPINION
Trump’s ultimatum is all about what comes after the "but"
15:13
Kremlin responds to Trump's threats to impose sanctions on Russia
15:04
Putin believes main goals in Ukraine have been achieved — media
14:53
Exclusive
Xi Jinping may use influence on Putin to negotiate with Trump — political scientist
14:32
North Korea to supply Russia with 150 KN-23 missiles, artillery systems in 2025 — Ukrainian intel
14:10
Europe will fund U.S. weapons for Ukraine, says NATO chief Rutte
13:48
No changes in U.S. military aid to Ukraine yet, Zelenkyy says
13:31
Exclusive
Trump's 100-day war settlement proposal looks like gift to Putin – military observer
13:26
Russian troops execute 6 Ukrainian prisoners of war in Donetsk region
13:16
Ukraine's intelligence and MFA free three sailors from Houthi captivity
12:52
Updated
Russia's night UAV and missile strikes kill one, injure 46 in Zaporizhzhia, including infant
More news