Hong Kong firm among 9 hit by US sanctions over allegedly procuring electronics for Russian weapons
Hong Kong Free Press
The US has imposed fresh sanctions on nine companies and five individuals over allegedly assisting Russia in procuring electronic devices for weapons programmes, including one Hong Kong-based company, M & S Trading.
The entities and individuals sanctioned formed a global network for defence procurement for Russia, the US Department of the Treasury said in a statement issued on Tuesday.
According to the US Department of the Treasury, the network is led by Belgium-based Hans De Geetere, with companies based in Russia, Belgium, Cyprus, Sweden, Hong Kong, and the Netherlands directly or in-directly led by De Geetere.
The department said De Geetere had been involved in a “years-long scheme” unlawfully exporting “sensitive, military-grade technology” from the US to end users located in China and Russia. The US authorities unsealed two indictments against De Geetere.
M and S Trading in Hong Kong had allegedly conducted business with a De Geetere-led company named Eriner to coordinate electronics orders for Russia, including integrated circuits.
The department said the integrated circuits procured by the Hong Kong company were the same model as those identified in Russian-made unmanned aerial vehicles found in Ukraine, adding that the network had tried to ship those electronic devices to Russia through Hong Kong, mainland China and Turkey.
“The United States and our allies remain focused on disrupting any attempts by Russia or its trusted agents to gain access to the critical inputs and technologies necessary to support Moscow’s defense industry and facilitate its brutal war in Ukraine,” the US Treasury said.
According to the website of M and S Trading, the company is “a professional agent of electronic components distributor” with offices in Shenzhen and Hong Kong. Its Hong Kong office is in San Po Kong, in Kowloon.
It sells integrated circuits and various electronic devices, according to its website.
HKFP has reached out to M and S Trading for responses.
Hong Kong’s role
The US has imposed a series of sanctions on Russia since the country invaded Ukraine on February 24, 2022, including banning the export of American semiconductors to Russia, except for humanitarian purposes.
Semiconductors are essential components for radar and guiding systems of weapons like drones and missiles.
Following the imposition of those sanctions, Hong Kong has been widely reported to play a critical role in the procurement network for Russia. An investigation by Reuters found that shipments of semiconductors and other technology continued to arrive in Russia from Hong Kong, Turkey and other trading hubs, through companies such as the Hong Kong-based Pixel Devices Ltd.
With transaction data of Russian semiconductor import records, Nikkei Asia reported that semiconductor import records for Russia from Hong Kong and mainland China increased tenfold between February 24 and December 31, 2022, compared to the same period in 2021.
The report said that Russia acquired chips via “circuitous routes”, with a large portion coming from small traders in Hong Kong and mainland China.
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