Internal communications from Russian defense firms reveal how sanctions have severely disrupted the supply of critical American-made microchips used in missiles and other weaponry deployed against Ukraine.
In April 2022, top officials from Russia’s defense sector convened in Moscow to address a mounting crisis: their stockpiles of microchips—essential components for operating missiles, drones, and artillery systems—were rapidly depleting. Just six weeks into the full-scale invasion of Ukraine, demand for these components had surged while international sanctions choked off access to foreign suppliers.
Sergei Sakhnenko, head of United Instrument Manufacturing Corporation, opened the meeting by acknowledging the severity of the situation. According to a leaked transcript of his remarks, he stated that sanctions had dealt a significant blow to the industry, noting that the vast majority of components were sourced from countries that had now prohibited trade with Russia.
These communications were uncovered among leaked emails and internal documents from subsidiaries of Ruselectronics, a holding company within the state-owned Rostec conglomerate. The materials offer an unprecedented look at how Russian defense officials navigated the supply crisis.
A separate investigation by the U.S. Senate Permanent Subcommittee on Investigations, published in September 2024, documented how Russia circumvented export controls through a network of intermediary companies based in mainland China and Hong Kong. These firms purchased American microchips from regional distributors and resold them to Russian suppliers.
Weapons such as the Kinzhal and Kalibr missiles, as well as Geran drones—all of which have caused widespread destruction in Ukrainian cities—depend on this technology. The Tornado-G rocket system and the Giatsint-S tank-mounted gun also rely on these components.
The Senate report concluded that these weapons could not be manufactured or operated without electronics from U.S. manufacturers.
On March 22, 2022, a company called Elitcom LLC informed a Ruselectronics subsidiary that it could not deliver promised microchips by May because the products originated from Analog Devices Inc., an American manufacturer that had halted shipments to Russia following sanctions. Elitcom noted that it had submitted a new purchase request through foreign partners, with a revised delivery date of September to October 2022.
Trade data indicates that chips from Analog Devices reached Russia via a Hong Kong firm named Icscan Electronic, which was among over 50 Chinese and Hong Kong companies supplying U.S.-manufactured semiconductors to Russian firms. In 2024, Icscan Electronic shipped a large consignment of U.S.-branded chips to Elsup, a Russian company identified in tax records as a supplier to Istok Research and Production Corporation, a Ruselectronics subsidiary.
Experts argue that microchip manufacturers must enhance their tracking systems to prevent such diversions. Erlend B. Bjortvedt, founder of the risk consultancy Corisk, stated that many producers have acknowledged insufficient control resources and that strict penalties are necessary to compel compliance.
Analog Devices responded by affirming its commitment to preventing unauthorized resale and illicit diversion, noting that it has strengthened its export control programs.
James Byrne of the Royal United Services Institute acknowledged the complexity of the challenge, given the intricate distribution networks involved. However, he maintained that the problem remains solvable with concerted effort.