[News] Indian Drug Company Aids Russia in Accessing NVIDIA Chips Amid Restrictions

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According to a report from Bloomberg, a drug company in Mumbai, India, Shreya Life Sciences has engaged in trading chips of advanced technology to Russian, raising concerns among the U.S. and its European allies.

The report indicated that Shreya exported 1,111 units of Dell’s most advanced servers to Russia between April and August of this year. The servers, known as PowerEdge XE9680, feature chips made by NVIDIA or AMD.

The servers, which contain chips made by NVIDIA or AMD, are among the items restricted by the U.S. and the EU. However, the report noted that these shipments are only part of a series of advanced technology exports that Shreya has legally made to Russia since September 2022. The shipments, valued at $300 million, were imported by two Russian trading companies: Main Chain Ltd. and I.S. LLC, as indicated by the report.

According to the report, Shreya’s shipments highlight a loophole in Western governments’ efforts to restrict Russia’s access to dual-use technology with potential military applications. The Bloomberg report noted that India has gradually become the second-largest supplier of restricted technologies to Russia, following China.

Notably, while India serves as an intermediary helping Russia access restricted processors, the actual origin of the shipments may be Malaysia, as the report noted that Indian import data from March to August 2024 shows that 1,407 of the same Dell units were imported into India from Malaysia.

Regarding India’s business relationship with Russia, the report noted that Prime Minister Narendra Modi’s government is not participating in the various rounds of U.S. and EU sanctions against Moscow. In fact, India has been relying on Russia for military equipment.

Additionally, India has become a key buyer of Russian crude oil since European countries halted imports, taking advantage of significant discounts offered by Russia, according to the report.

In response to the report regarding the shipments, Dell stated that it stopped selling its products in Russia in February 2022, right after the full-scale invasion of Ukraine. Both NVIDIA and AMD also emphasized their commitment to full compliance with export controls, according to the report from Bloomberg.

(Photo credit: NVIDIA)