Intel Suspending All Operations In Russia And Belarus

The U.S. chipmaking behemoth is cutting ties with Russia, pulling the plug on its 1,200-employee operation there.

Intel has taken its Russia business ban a step further, announcing today that it would suspend all operations over the country’s invasion of Ukraine — a move that will affect 1,200 workers.

“Intel continues to join the global community in condemning Russia’s war against Ukraine and calling for a swift return to peace,” the company said in a statement. “Effective immediately, we have suspended all busines operations in Russia. This follows our earlier decision to suspend all shipments to customers in Russia and Belarus.”

Initially, the Santa Clara, Calif.-headquartered chip giant complied with U.S. sanctions that called for tech companies to cut off supply and sales. In a report from Yale University’s School of Management, Intel received a “B” grade for its continued operations in Russia. Rival AMD, on the other hand, received an “A” grade after it stopped sales and distribution in Russia at the end of February. It’s unclear what operations from AMD remain in Russia, if any. CRN has reached out for comment.

“Our thoughts are with everyone who has been impacted by this war, particularly the people of Ukraine and the surrounding countries and all those around the world with family, friends and loved ones in the region.,” said Intel.

“We are working to support all our employees through this difficult situation,” said Intel. “We have also implemented business continuity measures to minimize disruption to our global operations.”

Michael Goldstein, CEO of LAN Infotech, a Fort Lauderdale, Fla.-based MSP, applauded the move by Intel to completely pull out of Russia.

“Congratulations to Intel for stepping up and taking a stand in the Russia invasion of Ukraine,” he said. “We need more companies to follow Intel’s lead. The only way to end Russia’s aggression and war atrocities – especially with the latest very disturbing video revelations on war crimes- is for companies to put pressure on Russia by pulling completely out of the Russian economy. It’s important to remember that Ukraine is the second largest country in Europe.”

Many tech firms have either suspended sales or pulled out entirely from Russia. The Yale University report noted 58 firms who were “digging in” and supplying the country even after near global condemnation over the invasion of Ukraine. The report said more than 600 global companies were complying with sanction efforts.

The Biden administration has made clear that it expects multinational companies with U.S. presence to comply with its ban on doing business in Russia.

A spokesman with the DOC’s Office of Foreign Asset Control previously told CRN that it expects Russia sanctions compliance from companies operating in any part of the world.

Intel declined to provide further comment.

In a message to CRN on Tuesday, a corporate spokesperson wrote: “Intel will continue to comply with all applicable export regulations and sanctions in the countries in which it operates. This includes compliance with the new sanctions against Russia Issued by (the Department of Commerce’s Office of Foreign Asset Control) and the trade regulations by (the Bureau of Industry and Security), along with the new sanctions.”