Taiwan's Acer ships computer hardware to Russia after saying it would suspend business -data

Acer Incorporated

08/06/2023 14:17

(Adds Acer stock identifier)
    By Filipp Lebedev and Gleb Stolyarov
       June 8 (Reuters) - Taiwan-based computer manufacturer
Acer  2353.TW  supplied at least $70.4 million worth of computer
hardware to Russia between April 8, 2022 and March 31, 2023,
according to customs data seen by Reuters, after saying it would
suspend its business there.
    While not illegal, Acer's actions contrast with those of key
Western rivals such as Dell  DELL.N  and HP  HPE.N  which ceased
shipments in February and April 2022, respectively, following
Moscow's full-scale invasion of Ukraine, customs records drawn
from a commercial trade data provider show.
    The records show equipment produced by Acer was supplied to
Russia both through Acer's wholly-owned subsidiary registered in
Switzerland and a number of delivery services by order of that
subsidiary.
    As the shipments originated outside Taiwan, they did not
violate Taipei's sanctions against Russia. Nor did they involve
items restricted at the time of export by Switzerland's
sanctions regime, which mirrors that of the European Union. 
    But in a statement on April 8 last year, the company said:
"Due to recent developments, Acer has decided to suspend its
business in Russia."
    Asked about subsequent exports to Russia via Swiss
subsidiary Acer Sales International SA, Acer in Taiwan said in a
statement that "we strictly adhere to applicable international
regulations and trade laws regarding exports to Russia".
    It added that the Swiss subsidiary "had not shipped any
laptops or desktops to Russia since April 8 last year", but that
it had supplied a "limited number of displays and accessories to
the Russian market for civilian daily use while ensuring
compliance with international sanctions".
    Acer did not say why it continued shipping its goods to
Russia despite saying it would suspend business there.
    A source familiar with details of the shipments, who
declined to be named due to the sensitivity of the issue, said
Acer's products, including PC monitors and laptops, continued to
be shipped to Russia after April 2022. 
    Reuters was unable to establish where some Acer goods that
can still be found on sale in Russia had originated from nor
when they had arrived in the country. 
    Swiss sanctions, in line with the EU's, allowed the export
of laptop computers and computing components to Russia until
Dec. 16, 2022. There were no deliveries of the newly prohibited
items by Acer to Russia from Switzerland after that date.  
    The company told Reuters it was possible that importers in
Russia sourced Acer devices from third countries. 
    Acer's Russian unit, in response to emailed questions, said
"nothing has changed" since the April 2022 statement.
    Acer accounted for 18.5% of all PCs sold in Russia in the
fourth quarter of 2021, according to consulting company IDC
Russia, while HP and Dell made up a combined 20.8%.
    The shipments underline how, despite international sanctions
aimed at limiting Russians' access to technology and equipment,
foreign-made goods remain available to consumers.
    And Artem Zhavoronkov, a partner at St. Petersburg-based law
firm Nordic Star, said Acer risked reputational damage.
    G7 leaders at a recent meeting in Japan acted to tighten
sanctions on Russia and cut off Moscow's attempts to evade them.
        
    FEWER SHIPMENTS
    Russian customs data shows at least 744 shipments of Acer's
products entered Russia between April 8, 2022 and March 31,
2023, compared with 3,735 in the year earlier period for a total
of $244.3 million.
    In monetary terms, shipments fell 71.1%, according to the
data, with laptops and PC monitors making up the bulk of
shipments.
    Taiwan announced it would join sanctions against Russia on
Feb. 25, 2022, with a special export permit required for
technological goods on a government-compiled list.
    Taiwan's Economy Ministry told Reuters that high performance
electronics, including monitors, displays and laptops are
included on this list and applications for export "in principle
will not be approved".
    The ministry said that as of end-March 2023 Acer had not
applied for such permits, and there are no Taiwanese customs
records of Acer exports to Russia. The ministry declined to
comment further.
    The main supplier of Acer equipment to Russia last year was
Acer Sales International SA, a firm registered in the city of
Bioggio, in the southern Italian-speaking canton of Switzerland.
    An officer of the subsidiary did not respond to requests for
comment sent via WhatsApp. 
    Switzerland's State Secretariat for Economic Affairs told
Reuters that it does not comment on individual cases or specific
companies.     
    Russia's Ministry of Industry and Trade did not respond to a
request for comment.

 (Reporting by Filipp Lebedev and Gleb Stolyarov in Tbilisi;
Additional reporting by Ben Blanchard in Taipei and Gabrielle
Tétrault-Farber in Geneva; Editing by Mike Collett-White,
Kirsten Donovan)