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Home News

Six Malaysian Companies Hit With US Sanctions Over Alleged Ties to Russia

The firms are believed to be supplying the country with western-made tech components.

by Heirul Kamel
November 4, 2024
Six Malaysian Companies Hit By US Sanctions

Image: Joshua Roberts / Reuters

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The United States has sanctioned six Malaysian companies for allegedly facilitating Russian military-industrial operations amid the Ukraine conflict. According to a press release dated 30 October from the US Department of State, these sanctions are part of a broader strategy to hinder Russia’s access to foreign technology and resources by targeting third-country entities suspected of aiding the country’s interests.

“It is aimed at disrupting sanctions evasion and targeting entities in multiple third countries, including China, India, Malaysia, Thailand, Türkiye and the United Arab Emirates,” the US State Department said. “Those items include microelectronics and computer numerical control items as identified by the U.S. Department of Commerce’s Bureau of Industry and Security alongside the European Union, United Kingdom and Japan.”

Six Malaysian Companies Hit By US Sanctions
Image: Reuters

The Malaysian companies listed are Zeolite Mansford Sdn Bhd, Centrina United Sdn Bhd, Gyntec Carbon Sdn Bhd, Moralability Industry Sdn Bhd, and Melix Global Sdn Bhd. This round of sanctions also involves 120 individuals and entities across various countries in order to disrupt the supply chain of critical items crucial for Russia’s military. Despite existing restrictions, western-made components, including processor chips, continue to appear in the country’s weaponry, indicating the persistence of workaround strategies.

On a related note, a recent report by Bloomberg is claiming that Mumbai-based company, Shreya Life Sciences, has been exporting NVIDIA AI chips from Malaysia to Russia, with shipping documents showing that 834 Dell PowerEdge XE9680 servers have been shipped between both countries. The publication also highlighted Indian import data from March to August 2024 which indicates that of 1,407 units imported from Malaysia, 1,111 of which were subsequently sent to Russia.

(Source: The Star)

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Filed Under companiesfirmsMalaysiaRussiasanctionsUS
Updated 11:45 am, Mon, 4 November 24
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