Indian Shreya Life Sciences (traditionally a pharmaceutical distributor) has emerged as an important supplier of restricted AI technologies to Russia. It shipped 1,111 high-end Dell servers from the United States containing restricted Nvidia chip between April and August 2024.
Bloomberg reports that an Indian pharmaceutical company is shipping hundreds of advanced AI servers with restricted Nvidia chips from India to Russia. This highlights the gaps in Western efforts designed to limit Moscow’s technology access.
India maintains a neutral position on the war in Ukraine. It calls for an immediate cessation and respect of territorial integrity. However, it does not condemn Russia openly and keeps economic and diplomatic relations with the aggressor.
Bloomberg analyzed trade data and found that Shreya Life Sciences of Mumbai exported 1,111 US Dell PowerEdge servers XE9680 to Russia between April 2024 and August 2024.
Shreya Life Sciences was founded in Moscow in the year 1995 and has traditionally concentrated on pharmaceutical distribution. In September 2022 the company began to diversify into technology shipments, initially working with companies sanctioned by US.
Nearly 1,000 of the servers contained Nvidia H100 chips. These chips are subject to US-EU restrictions that target Russia’s military industry complex.
Nvidia’s H100 chip is one of the most advanced graphics processor units (GPUs), specifically designed for artificial intelligence applications. Their processing power can be used to enhance military technology and develop sophisticated AI models for electronic intelligence and war systems.
The shipment, worth $300 million, was made legally to Russian trading companies Main Chain Ltd., and I.S LLC. India is not a party to the Western sanctions imposed against Moscow.
US Dell Technologies announced that it would cease operations in Russia by February 2022, and maintains a “strict trade compliance program”. Both Nvidia AMD reported that they work to ensure export compliance.
Andriy Yerimak, the chief of staff to Ukrainian President Volodymyr Zelenskyy, said: “Nobody should profit from the lives and suffering of Ukrainians.”
India is now Russia’s second largest supplier of critical technology, including semiconductors. This has happened despite Western sanctions over the Ukraine war. This shift highlights India’s growing economic ties to Russia, particularly in the technology sector. Despite global efforts to limit such trade, this shift highlights India’s growing economic ties. The increase in exports has raised concerns among Western nations regarding the effectiveness of sanctions designed to isolate Russia economically.
Indian officials maintain that exports controlled goods comply with national laws as well as international non-proliferation agreements. The Indian government has investigated US accusations about dual-use technologies supplied to Russia and taken actions where necessary, noting that Shreya Life Sciences wasn’t on the list of investigated companies.
Zelenskyy had revealed earlier that Ukraine is actively engaging India in the hope it can play a mediating role in a peace agreement with Russia. Kyiv views India’s neutrality and strong relations with Russia to be an opportunity to influence the negotiations.
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