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Switzerland still exports technology to Russia – News Insight 

12 April, 2023 Wednesday
13:12

Even despite sanctions, Swiss technology, such as electronic chips and precision machinery, is still supplying Russia’s war against Ukraine

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News Insight writes about an investigation conducted by the Italian public service broadcaster RSI

Swiss chips in Russian missiles and drones 

According to the article, a Swiss chip was found in a Russian reconnaissance drone used in the Donbas to locate Ukrainian positions. The chip was made by U-blox, a Zurich-based company that manufactures electronics for automotive and medical industries. U-blox prohibits customers from using their products for military or weapons applications from 2022. 

“One possibility for how these chips ended up in a Russian military system is that they were removed from commercial products, such as electric bikes or cars, and then installed in these drones,” explains Stefan Zizala, CEO of U-blox.

The company tracks distribution chains but can't stop customers from violating restrictions.

Chips are delivered to Russia through Asia

The Swiss Confederation had outlawed its direct shipment to Moscow since March 4, 2022, when Russia invaded Ukraine. Despite these sanctions, strategic components vital to the Kremlin's arsenal were shipped to Russia, violating Swiss laws.

Publication notes that, according to RSI, 14 shipments of "non-military" equipment, including U-blox GPS/Glonass modules, were sent from China to Russia from May to September 2022, valued at $90,000. SMT-ILogic, a firm specializing in telecommunications, was found to be connected to Russian firm STC, which produces the Orlan drones, by journalistic investigations from Reuters, IStories, and RUSI.

Russian drones composed of Western components

International media reports suggest that two companies that had previously shared some co-owners are no longer connected. The Orlan drone is primarily composed of American components. Since 2016, STC has been under US sanctions for aiding the Russian military intelligence service. Chinese firms are supposed to be responsible for sales in Russia, but they are mainly Russian companies founded and registered by Russian citizens. 

According to Denys Hutyk, the director of an independent research center Economic Security Council of Ukraine, “at least two of these Chinese companies are front companies for the main Russian manufacturer of the Orlan drone.”

Dual civilian and military use

RSI found precision machinery made in Switzerland being exported to Russia, including weapons essential to Vladimir Putin’s war machine. Galika AG, a Swiss subsidiary, shipped 382 machine tools, spare parts, and precision instruments to Russia between March 2022 and February 2023, worth $2.2 million. 

A Mikron HPM 600 HD machine tool worth $220,000, produced by Swiss firm GF Machining Solutions, is part of the shipment from a Turkish corporation to Galika's Russian subsidiary. The machine's eventual installation is unknown. 

In 2018, Galika gave 23 devices of the same model to JSC Konstruktorskoe Buro Priborostroeniya, a Russian defense industry. This company develops high-precision weaponry systems for Putin’s armed forces, as well as anti-aircraft defense systems, high-rate artillery, and small arms. Since 2014, a state entity has been sanctioned by the United States, but not from Switzerland.

GF Machining Solutions denies any direct dealings with Russia and blames the commercial intermediary Galika AG for the business. The State Secretariat for Economic Affairs has refused to comment on the machinery authorizations.

Missiles and war crimes allegations 

Swiss-made machinery and electronic chips from Switzerland are used in Russian missiles and drones, while evidence of Russian war crimes against Ukrainians includes over a thousand missiles – weapons that, according to Dmytro Chubenko, the Kharkiv region prosecutor’s spokesman, “caused more than 1600 deaths and more than 2500 injuries in the Kharkiv region. 

The analysis concentrates on metal components and electrical chips, which have been entrusted to experts from the Ministry of Defense to trace the producer countries. Switzerland is included.

Components have been traced to at least two Swiss companies, ST Microelectronics and Traco Power. Both companies have declined to be interviewed and have issued statements saying they have ceased all sales and activity in Russia following sanctions imposed due to the invasion.

One year wasn't enough to stop Putin's war machine

Publication states that questions remain about the responsibility of Swiss and Western firms for exporting items used in Russian weapons. Export restrictions need to be addressed urgently. Switzerland is still manufacturing microprocessors that end up in Russian weapons and are used to kill civilians in Ukraine. 

Article emphasizes that it is unacceptable that this is still happening after one year of war, and all shipments to Russia should be blocked immediately.

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