Mumbai-based pharma company helping Russia acquire NVIDIA's AI chips: Report
What's the story
Mumbai-based pharmaceutical company Shreya Life Sciences has emerged as a major player in the trade of cutting-edge technology to Russia.
The development has alarmed the US and its European allies over India's increasing role as an intermediary in the transactions.
According to Bloomberg News's analysis of trade-tracking firms ImportGenius and NBD data, the company exported 1,111 units of Dell's most-advanced servers to Russia between April-August this year.
Tech details
Exports include servers with high-end processors
The servers shipped by Shreya, dubbed PowerEdge XE9680, pack high-end processors optimized for artificial intelligence (AI).
These processors are made by NVIDIA or AMD, according to Dell's website.
Specification data for 998 of the shipped servers show that they were equipped with NVIDIA's H100 chips, a component commonly used in AI applications.
Trade concerns
Shreya's exports bypass US, EU restrictions
The servers and chips exported by Shreya are on a list of items restricted by the US and the European Union. These restrictions target sensitive sectors in Russia's military industrial complex.
However, the $300 million shipments were legally imported into Russia by two Russian trading companies, Main Chain Ltd. and I.S LLC.
This marks a continuation of advanced technology exports Shreya has been conducting since September 2022.
The company has not respond to requests for comment, according to Bloomberg News.
Supplier status
India emerges as major supplier of restricted tech to Russia
India has become the second-largest supplier of restricted technology to Russia, after China.
This is despite western government efforts to restrict Moscow's access to dual-use technology with possible military applications.
The development has prompted Andriy Yermak, Ukrainian President Volodyrmyr Zelenskiy's chief of staff, to worry that Russia is still receiving components used for electronic intelligence and warfare systems despite western sanctions.
Origin revealed
Malaysia identified as origin of tech shipments to Russia
Trade data indicates that although India serves as the point of transshipment, the true origin of these tech shipments is Malaysia.
Shipping documents for at least 834 PowerEdge XE9680 units bound for Russia, listed their country of origin as Malaysia.
Indian import data for March-August 2024 shows that 1,407 of the same Dell units were imported into India from Malaysia.
Compliance stance
Tech companies' stance on compliance with sanctions rules
Tech giants such as Dell, NVIDIA, and AMD are required to follow sanctions rules and track sales of sensitive products.
Dell claimed it had ceased selling and offering services or support for products in Russia in February 2022.
NVIDIA and AMD both claimed they work with partners to ensure sales are in "full compliance" with export controls, taking appropriate action if any violations are identified.
Trade relations
India's trade with Russia amid sanctions
India continues to do business with Russia as it is not party to the multiple rounds of US and EU sanctions imposed on Moscow.
This has caught the attention of western governments, with US and EU officials visiting India in recent months to dissuade further shipments.
However, New Delhi has shown little engagement with the US concerns about its role in procuring goods for Russia's war.