Washington, U.S.According to a Senate Democratic report released Wednesday, a vital national security office is still severely understaffed, allowing Russian-made technology to continue to end up in Ukrainian hands.
Sen. Richard Blumenthal, a Democrat from Connecticut, is leading the investigation, which was released at the same time as members of the incoming Trump administration demand significant expenditure cutbacks. The new analysis emphasizes how current capacity shortages in important federal agencies are already harming U.S. interests, despite their arguments centered on reducing government waste.
Democratic staff on the Senate Permanent Subcommittee on Investigations claim in the 30-page study that the Commerce Department’s Bureau of Industry and Security (BIS) enforcement of export controls is insufficient at every level and only partially meets expectations.
It said that despite more contemporary options being used by other government agencies as well as the business sector, the agency is expected to carry out a crucial national security role on a shoestring budget with ludicrous technology that hasn’t been significantly upgraded in almost 20 years.
As a result, Russian drones, armored vehicles, and missiles still include American microchips and other equipment.
The study is the outcome of a 15-month investigation headed by Blumenthal, during which the top executives of the biggest American semiconductor companies appeared before the panel and were interrogated by both Democrats and Republicans about Russia’s capacity to purchase and use their goods in spite of export restrictions.
A previous draft of the study, which was made public prior to the September hearing, concluded that export controls at the four main chipmakers in the United States—Advanced Micro Devices (AMD), Analog Devices, Intel, and Texas Instruments Inc.—had been woefully inadequate.
According to the current analysis, a lack of federal enforcement may be a contributing factor. According to the article, the BIS has mainly left it up to semiconductor businesses to decide how to comply with the regulation. Additionally, it accuses the government of not imposing fines or charging the corporations with sufficiently serious offenses.
A Department of Commerce spokesperson told NBC News that under the Biden administration, BIS has implemented the most robust export controls in history, and crucially, we ve done so in concert with our allies to deny Russia the items it needs to maintain its war machine.
The spokesperson said that despite the fact that BIS’s budget has been stagnant for ten years, the bureau works tirelessly to fulfill its mission and protect American national security. She also added that “the agency will be even better equipped to address the challenges that come with our evolving national security environment” if Congress provides the funding that Commerce Secretary Gina Raimondo and bipartisan members of Congress have demanded.
Trump’s appointment of billionaire Howard Lutnick to head the agency during his second term occasionally sparked calls to cut federal agency spending and even gave Elon Musk the authority to manage the newly established Department of Government Efficiency (DOGE). Musk has demanded government expenditure cutbacks of up to $2 trillion, which is more than the whole amount of the discretionary budget.
Texas Instruments said it vehemently condemns the illegal diversion of our products to Russia and the use of our chips in Russian military hardware in a response to a request for comment on the allegations. In February 2022, TI ceased exporting goods to Belarus and Russia. According to a statement from the firm, any shipments of TI chips into Russia are illegal and not allowed. To prevent illegal diversion and keep chips out of the hands of unscrupulous actors, we invest a lot of time and money in creating, putting into practice, and improving policies and processes. We look into and take action if we discover evidence of product diversion.
An AMD spokesperson said in a statement: AMD shares the goal of preventing Russian military access to our products outlined in the Senate PSI report and has no tolerance for their illicit diversion into Russian weapon systems. We ceased all sales and tech support for our products to Russia and all restricted regions immediately following Russia s invasion of Ukraine. Our export compliance program is developed with guidance from the U.S. Bureau of Industry and Security. Before we make a sale, we undertake measures to ensure we know who we are selling to, including a refusal to do business with any company that may have a direct or indirect association with a sanctioned entity. AMD is continuing our collaborations with BIS and the Disruptive Technology Strike Force on this challenging but critical issue.
Analog Devices said in a statement: ADI is committed to preventing the unauthorized resale, illicit diversion, and misuse of our products, and to complying with applicable laws and regulations in the countries where we operate. We at ADI strongly condemn the illicit diversion and unintended misuse of our products.
Intel said in a statement that it operates “in strict accordance with export laws, sanctions and regulations in the U.S. and every jurisdiction in which we operate. We hold our suppliers, customers, and distributors accountable to these same standards.”
“Intel is diligently working to track and mitigate the potential diversion of our products, including actively coordinating with non-governmental organizations, the U.S. and other governments to identify and stop this activity.”
Although the U.S. and its Western allies have imposed an array of sanctions to cripple Russia s economy and cut off the Kremlin s access to key parts used to build weapons, Russia s production of artillery, missiles and drones hasdramatically increased, according to a reportfrom over the summer. The report from the Royal United Services Institute, a U.K.-based defense think tank, found that Russia obtains raw materials and weapons components from NATO member countries, and greater collaboration is needed between the nations to choke Moscow s access.
Export controls have emerged as a critical national security tool over the last two decades. Democrats on the investigative panel said the efforts are not only central to crippling Russia s advances in Ukraine, but also to slowing China s progress to match the U.S. in artificial intelligence.
In a letter to Raimondo on Wednesday, Blumenthal outlined the report s findings and asked the agency to take aggressive steps to cut the flow of U.S. semiconductors into the Russian war machine.
He referred to a Bloomberg News article from earlier this month thatreportedWestern officials have been continuously frustrated to find Russian weapons chock full of American-made electronic components despite a flurry of trade controls. In fact, the report found that, in some cases, Russian distributors have simply integrated ordering information from Texas Instruments online shop, TI store, into their offerings, allowing them to see and order up-to-date parts with the click of a mouse. The items then get routed through Hong Kong or other countries before arriving in Russia.
TI told Bloomberg it devotes significant time and resources to keep its products out of Russian hands. In September, a TI official told a Senate hearing about the efforts it makes to control exports to its products.
I want to be very clear: TI strongly opposes the use of our chips in Russian military equipment. Any shipments of TI products into Russia are illicit and unauthorized,Shannon Thompson, the company s assistant general counsel, said duringthe Senate Permanent Subcommittee on Investigations hearingsin September. We work hard to prevent the illicit diversion of our parts into Russia. Every level of our company takes this seriously.
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