PC manufacturer Acer is this morning having to explain, why they have continued to ship millions of dollars’ worth of computers to Russia after expressly claiming that they had suspended shipments last year when most PC Companies moved to black ban shipments to Russia.
The Taiwanese Company was caught out according to Reuters, shipping millions of dollars’ worth of PCs via a Swiss subsidiary.
According to customers data Acer has between April 8, 2022, and March 31, 2023, supplied over A$100 million dollars’ worth of computer hardware to Russia alone after initialling claiming the business had suspended shipments similar to what Dell, Alienware and HP did when Russia’s war with Ukraine started last year.
The customs records show equipment produced by Acer was supplied to Russia both through Acer’s wholly owned subsidiary registered in Switzerland and various delivery services.
In total they are accused of shipping over A$363m dollars’ worth of goods during the war, into Russia where it appears Acer PC products are still widely available despite Western bans.
While not illegal, Acer’s actions contrast with those of their competitors who ceased shipments in February 2022, following Moscow’s full-scale invasion of Ukraine.
The exposed customs records show equipment produced by Acer was supplied to Russia both through one of Acer’s wholly owned subsidiaries registered in Switzerland and a number of delivery services, that the business was hoping would mask the fact that they had continued to supply Russia with both notebooks and desktop PC’s.
Acer chose to ship from overseas entities as opposed to directly from Taiwan so as not to violate Taipei’s sanctions against Russia.
After being caught out Acer issued a statement claiming, “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”.
They did admit that they had supplied a “limited number of displays and accessories to the Russian market for civilian daily use while ensuring compliance with international sanctions”.
A Company source who spoke to Reuters investigators but 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.
The company told Reuters it was possible that importers in Russia sourced Acer devices from third countries.
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%.
Artem Zhavoronkov, a partner at St. Petersburg-based law firm Nordic Star, said Acer risked reputational damage.
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.
Russia’s Ministry of Industry and Trade did not respond to a request for comment.
While not illegal, Acer’s actions contrast with those of key Western Companies who are supporting sanctions.
Artem Zhavoronkov, a partner at St. Petersburg-based law firm Nordic Star, said Acer risked reputational damage.