Bloomberg: Indian pharma company channels sanctioned AI servers used by military to Russia

An Indian pharmaceutical company has been shipping hundreds of advanced AI-optimized servers containing restricted Nvidia chips to Russia, Bloomberg reports, highlighting gaps in Western efforts to limit Moscow’s access to sensitive technology.

India holds a neutral stance on the war in Ukraine, calling for an immediate cessation of hostilities and respect to territorial integrity, while also refraining from openly condemning Russia and keeping economic and diplomatic ties with the aggressor. 

Shreya Life Sciences, based in Mumbai, exported 1,111 US Dell PowerEdge XE9680 servers to Russia between April and August 2024, according to trade data analyzed by Bloomberg. 

Shreya Life Sciences, founded in Moscow in 1995, traditionally focused on pharmaceutical distribution. The company began diversifying into technology shipments in September 2022, initially working with companies that were later sanctioned by the US. 

Nearly 1,000 of these servers contained Nvidia’s H100 chips, which are subject to US and EU restrictions aimed at Russia’s military industrial complex.

Nvidia’s H100 chips are among the most advanced graphics processing units (GPUs) available, specifically engineered for artificial intelligence (AI) applications. Their advanced processing power can enhance military technologies and help develop sophisticated AI models, used for electronic intelligence and warfare systems.

The shipments, valued at $300 million, were legally made to Russian trading companies Main Chain Ltd. and I.S LLC, as India is not party to Western sanctions imposed on Moscow. 

US Dell Technologies stated it ceased operations in Russia in February 2022 and maintains “a strict trade compliance program.” Both Nvidia and AMD reported they work to ensure export control compliance.

“No one should profit from the lives of Ukrainians,” said Andriy Yermak, Ukrainian President Volodymyr Zelenskyy’s chief of staff.

However, India has become Russia’s second-largest supplier of critical technologies after China, including semiconductors, amid Western sanctions over the war in Ukraine. This shift highlights India’s growing economic ties with Russia, especially in the technology sector, despite global efforts to restrict such trade. The increase in exports raises concerns among Western nations about the effectiveness of sanctions aimed at isolating Russia economically.

Indian officials maintain that exports of controlled goods comply with national laws and international non-proliferation obligations. The Indian government has investigated US allegations about dual-use technology supplies to Russia and taken action where needed, noting that Shreya Life Sciences was not on the list of companies investigated.

Earlier, Zelenskyy revealed that Ukraine is actively engaging with India, hoping it can play a role in mediating a peace deal with Russia. Kyiv sees India’s neutral stance and strong relations with Russia as an opportunity to influence negotiations. 

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