russia Continues Its Steady March Toward Technological Suicide

Starting May 27, moscow is banning parallel imports of a wide range of electronic products. The ban covers Intel processors, SanDisk storage devices, SK Hynix memory, Acer and Asus laptops, and equipment from Samsung, Hewlett Packard, and Fujitsu.

Parallel imports (official smuggling) emerged in russia in 2022 as a response to sanctions: they allow branded products to be imported without the manufacturer’s consent via third countries. Azerbaijan, Kazakhstan, the UAE, Türkiye, and China have become the main corridors for supplying russia with electronics, microchips, server equipment, and dual-use goods. Now moscow itself is blocking some of these routes.

The official explanation is predictably absurd: the ministry of industry and trade claims that the domestic market is already supplied with “russian analogues” that will replace products from “unfriendly countries”. The reality, however, is exactly the opposite.

Managers of russian industrial enterprises openly admit: the policy of import substitution has failed. Demand is falling, growth has stalled in virtually all sectors, and those who invested in the kremlin’s “strategic priorities” have been left empty-handed. “Cooling the economy” that moscow speaks of has long since turned into a full-blown supercooling.

Statistics confirms that over the past ten years, russia’s GDP has grown by an average of 1.5% per year, while consumer prices have skyrocketed by 77%. Per capita income is among the lowest in Europe. Customs authorities are already imposing higher duties on businesses for goods from EAEU countries if they are produced in “unfriendly” states: non-food consumer goods may become by 10–15% more expensive, and in some segments – by up to 30%.

The new restrictions limit russia’s access to high-quality components and server equipment, increase dependence on Chinese suppliers, and speed up technological lagging behind. The kremlin aims at Acer and Intel, but hits its own industry.

Instead of microchips, syringes, catheters, and IV drips have been added to the list of goods permitted for official smuggling. russia is systematically moving toward the only sector where sanctions won’t hinder it: the production of its own wounded.