How can Russia keep producing weapons with foreign parts despite sanctions?
Microchips, semiconductors and other microelectronics from China, the US and the EU are still being found in Russian drones and missiles launched at Ukraine.
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00:00Western microchips, semiconductors and other microelectronics from China, the U.S. and
00:09the European Union are still being found in Russian drones and missiles launched at Ukraine,
00:15although the sanctions did have impact, Ukraine's president's adviser says.
00:20The Russians are still quite able to acquire those parts and to produce the weapons, including
00:28the missiles and the drones. We also are quite happy that the Russians are receiving less
00:34parts that they want and also they are paying much more price than they wanted.
00:39We estimate that in some cases for microelectronics it's now 125% more expensive than it was,
00:46in some cases 300% more expensive. So this altogether constitutes a considerable damage
00:53to the Russian military-industrial complex.
00:58While Brussels states that the sanctions are working and it is now about their implementation,
01:04Kyiv believes that there is more to do.
01:10We propose to impose sanctions against the whole financial sector of Russia.
01:16We think that that would really disincentivize the third country's financial institutions
01:20from dealing any transactions with Russian financial institutions.
01:24That would probably really, really freeze and slow down any transactions for the benefits of Russian economy.
01:31So that is probably the most radical proposal we have put on the table.
01:36Two and a half years since the full-scale invasion and multiple sanctions later,
01:40Russian economy has so far remained resilient and continues to fuel the war in Ukraine.