Russia relies on several countries to avoid Western sanctions - ISW

The ISW cites a Financial Times report from September 4, which reveals that Russia's Ministry of Industry and Trade developed a plan in October 2022 to spend nearly $1 billion on securing critical electronic components. This plan reportedly included the possibility of establishing facilities in India to access such components.

According to the FT, documents in its possession indicate that Russia was secretly procuring sensitive dual-use electronics from India using significant reserves of Indian rupees accumulated by Russian banks from increased oil sales to India.

It remains unclear how extensively Russia has implemented this plan, though the ISW assesses that Russia is engaged in broader efforts to evade Western sanctions and procure sanctioned electronic components and equipment through foreign entities.

ISW also notes that on September 4, on the sidelines of the Eastern Economic Forum in Vladivostok, Vladimir Putin met with Serbian Deputy Prime Minister Aleksandar Vulin.

Vulin stated that Serbia would not impose sanctions on Russia and would not permit its territory to be used for anti-Russian activities. Analysts suggest that Vulin's comments were partly aimed at mitigating some of Putin's irritation following Serbia's recent purchase of 12 Rafale jets from France, likely an attempt to diversify its arms suppliers away from Russia.

Putin expressed hope to see Serbian President Aleksandar Vučić at the upcoming BRICS summit in Kazan in October 2024.

On the same day, Putin also met with Chinese Vice President Han Zheng. Kremlin spokesman Dmitry Peskov reported that Putin briefed Chinese officials on the results of his recent trip to Mongolia, emphasizing the growth in regional trade and cooperation with China and Mongolia.

ISW reminded that it has previously highlighted signs that foreign companies and banks, including those in China, are increasingly reluctant to conduct transactions with Russian entities due to concerns over potential secondary Western sanctions that could impact Russia's efforts to evade sanctions.

Recall that on September 4, the Financial Times reported that Russia had secretly been purchasing dual-use goods from India and exploring the possibility of establishing facilities there.

On August 23, the United States expanded sanctions against Russia. The new package covers around 400 entities, affecting Russia's fuel, energy, and metallurgy sectors. It also targets the financial sector and dual-use goods for Russia's military-industrial complex, which are supplied in circumventing sanctions.