Affected By Western Sanctions, Russia Restricts Exports Of Noble Gas To Various Countries, Shortage Of Chip Supply Could Appear Again

World supply of chips could be disrupted if Russia restricts precious gas exports. (photo; doc. pixabay)

JAKARTA - Western sanctions imposed on Russia have prompted the country to limit exports of precious gases such as neon, a key ingredient for making chips, until the end of 2022 to strengthen its market position, its trade ministry said Thursday, June 2.

Russia's export restrictions could exacerbate a supply crunch in the global chip market. Ukraine was one of the world's largest suppliers of precious gas until it halted production at its factories in the cities of Mariupol and Odesa in March because of the war.

According to the Russian government, as of May 30, the export of precious gas, which Russia undertakes to supply to Japan and other countries, will only be allowed with special state permits until December 31.

"This step will give us the opportunity to reset the chains that have now been broken and build new ones," Russia's Deputy Trade Minister Vasily Shpak told Reuters via the ministry's press service on Thursday, June 2.

Russia accounts for 30% of the global supply of precious gas, according to the ministry's estimates. If they start limiting their exports, the world's chip supply, which had recovered, will shake again. The world chip crisis, which had improved, could appear even worse at the end of this year.

Taiwan, the world's leading chipmaker, imposed restrictions on chip exports to Russia after Moscow sent thousands of troops to Ukraine on February 24.

"We plan to increase our production capacity (noble gases) in the near future. We believe that we will have the opportunity to be heard in this global chain, and this will give us some competitive advantages if necessary to build mutually beneficial relationships and negotiations with partners. -our comrades," said Shpak.