California Connection: How A Chinese Factory's Electronics Are Fueling Russia's War
The Ukrainian military has recovered least one diode produced by Yangjie Technology from a module used in a Russian guidance system known as UMPK, according to a Ukrainian database of foreign-made components in Russian weapons systems. UMPK is used to provide guided, navigational ability to air-dropped bombs — known as glide bombs — that Russia has deployed to devastating effect in Ukraine.
Yangjie Technology also sent at least 173 shipments of “high-priority” dual-use technology to the Russian company Simmetron Electronic Components. Simmetron was hit with U.S. sanctions in May 2023 as part of a broad series of measures aimed to “degrade the Russian Federation’s capacity to wage war against Ukraine.”
At least three of those shipments were sent to Simmetron in August-September 2023, customs records show.
Neither Yangjie nor Simmetron responded to e-mails from RFE/RL seeking comment.
California Connections
A major Chinese electronics and semiconductor manufacturer, Yangjie has been listed on the Shanghai stock exchange since 2014. Last year, the company’s international shares — Global Depository Receipts – began trading on the Swiss stock exchange.
As part of the deal, the company appointed U.S. financial services giant Citibank to be the depository bank, serving as the go-between for traders buying and selling the international shares.
Citigroup declined to comment specifically on the company’s knowledge or awareness of possible sanctions violations.
“Citi is committed to conducting business with clients in compliance with the applicable laws and regulations of the jurisdictions in which we operate. We have controls, policies, and processes in place to monitor adherence to these obligations including sanctions,” a spokeswoman said in an e-mail.
In 2015, Yangjie closed on a deal to buy a U.S.-based semiconductor company called Micro Commercial Components, which says it makes “high quality discrete semiconductors,” some of which can be used in military technology. Headquartered in Simi Valley, California, Micro says its manufacturing plants are located in China and Vietnam, with research facilities in Japan, China, and Taiwan.
In an e-mail to RFE/RL, Micro Commercial Components said it complies with all U.S. sanctions and guidelines. The company forwarded a copy of its export compliance policies that read: “The buyer must fully comply with all applicable laws and regulations regarding the purchase, sale, shipment, export, re-export, transfer, or use of the products.”
A Russian company called VM Components, working under the name Platan and describing itself as a leading provider of electronics components in Russia, received more than three dozen shipments from Yangjie as well, according to customs records.
VM Components is part of a network of companies that work closely with another sanctioned company, JSC Roselektronika, and a Russian entity owned by the Federal Security Service, Russia’s main domestic security agency, records reviewed by RFE/RL and C4ADS reveal. The entity is known more widely as the FSB Criminalistics Institute, or by its military code, 34435.
A December 2020 joint investigation by Bellingcat, The Insider, CNN, and Der Spiegel found Russian security service officers linked to the poisoning of opposition leader Aleksei Navalny in August of that year worked under that military unit.
Navalny died in a Russian prison under unclear circumstances in February 2024.
It is unclear from customs records whether the FSB Criminalistics Institute received specific items shipped by Yangjie.
VM Components did not respond to a written request for comment.
Mike Eckel is a senior RFE/RL correspondent. Mark Krutov is a correspondent for RFE/RL’s Russian Service. RFE/RL’s Riin Aljas contributed to this report. This article is reprinted with permission of Radio Free Europe/Radio Liberty (RFE/RL). CORRECTION: This story has been updated to clarify the location of Micro Commercial Components’ manufacturing facilities.
