fortunejack The Illicit Flow of Technology to Russia Goes Through This Hong Kong Address

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.

ImageThe door of Rikkon Holding and Olax Finance at 135 Bonham Strand. No one answered during a visit in June.Credit...Anthony Kwan for The New York Times

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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Since 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. Chips

Supply 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.

July ’21

2022

July

2023

July

2024

50

100

150

200

$250 million

invasion Value of chips sold Sold to companies placed under U.S. sanctions

Notes: 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 Lines

July–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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