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From a nondescript seventh-floor office at 135 Bonham Strand near Hong Kong’s financial district, at least four companies are operating with a shadowy mission: facilitating the illicit trade of Western technology to Russia.
Shell companies at that address have acquired millions of restricted chips and sensors for military technology companies in Russia, many of which have been placed under sanctions by the U.S. government, according to an examination by The New York Times.
The companies have names like Olax Finance and Rikkon Holding. Their office, with a faded 704 number on the door, appears unoccupied. No one answered during a visit last month. An ad for air-conditioning hung in the crack of the door.
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Yet the companies are a crucial link in a chain connecting U.S. research laboratories to Chinese factories, Russian arms makers and the battlefields of Ukraine — and a sign that the U.S. government and tech giants cannot control where their technology goes.
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SKIP ADVERTISEMENTSince Russia invaded Ukraine in 2022, nearly $4 billion of restricted chips have poured into Russia from more than 6,000 companies, including those at Hong Kong’s 135 Bonham Strand, according to a Times analysis of Russian customs data, corporate records, domain registrations and sanctions data. The analysis examined nearly 800,000 shipments of restricted electronic goods into Russia since mid-2021.
The Wartime Boom for U.S. ChipsSupply chains were quickly formed in the months after Russia’s invasion of Ukraine, with millions of dollars’ worth of American chips flowing to Russian companies to power missiles and other technology.
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invasion Value of chips sold Sold to companies placed under U.S. sanctionsNotes: Data is monthly value of shipments to Russia of Tier 1 restricted chips as designated by the U.S. Department of Commerce.
By Ella Koeze
How US Chips Continue to End Up in Russian Missiles - The New York Times One Business Address; a Growing Web of Supply LinesJuly–Dec. 2021
Before the invasion, two companies that were registered at the same Hong Kong address shipped American chips to Russia.
Kvantek $4.1 million
Superchip
SMT-iLogic $2.8 million
Staut $1.4 million
LLS
Leningrad Microwaves
Shipped by ...
Shipped to ...
Notes: Data is shipments of Tier 1 restricted chips as designated by the U.S. Department of Commerce. Shipments less than $100,000 are shown larger than scale for visibility.
By Ella Koeze
July–Dec. 2022
After the invasion, more exporters registered at that address began shipping to an expanded web of Russian importers, despite trade restrictions.
Kvantek $4 million
Saril Overseas $7 million
Superchip $4 million
Device Consulting
S-MiT
SMT-iLogic
Staut $11.8 million
Maui Logistics
Chipdevice $1.3 million
LLS
Leningrad Microwaves
Shipped by ...
Shipped to ...
Notes: Data is shipments of Tier 1 restricted chips as designated by the U.S. Department of Commerce. Shipments less than $100,000 are shown larger than scale for visibility.
By Ella Koeze
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