New business

Big 3 cloud providers halt new business in Russia

Add Amazon Web Services to the growing list of companies (tech and otherwise) scaling back their business with Russia in opposition to President Putin’s invasion of Ukraine. As reported in The New York Times and by Amazon itself, Amazon Web Services blocks new registrations from Russia and Belarus. Existing customers are not impacted.

“We have suspended shipping of retail products to customers based in Russia and Belarus, and we will no longer accept new AWS customers based in Russia and Belarus and third-party sellers from Amazon,” Amazon said in a statement. press release dated March 8. “We are also suspending access to Prime Video for customers based in Russia, and we will no longer be taking orders for New World, which is the only video game we sell directly in Russia.”

Additionally, the e-commerce and web services giant said the company has no data centers, infrastructure or offices in Russia and maintains a long-standing policy of not doing business with the government. Russian.

Earlier, Amazon said it was “donating $5 million to organizations that provide critical on-the-ground support in Ukraine and matching up to $5 million in additional employee donations.”

Rival cloud provider Microsoft had days earlier said it was ceasing “all new sales of Microsoft products and services in Russia” and halting “many aspects” of its business in Russia under sanctions.

Google Cloud reports a similar policy. “We can confirm that we are not accepting new Google Cloud customers in Russia at this time. We will continue to closely monitor developments,” the internet giant said in a statement to TechCrunch.

Other tech companies that have suspended business with Russia include Intel, AMD, Nvidia, IBM, HPE, Dell, Microsoft, NetApp, Cisco, SAP, Samsung and Oracle. Chipmaker TSMC said it suspended sales to Russia and GlobalFoundries said it was complying with U.S. sanctions, according to a Washington Post report.

The United States is taking advantage of a new export control mechanism – called the Foreign Direct Product Rule – which prevents American and non-American companies from selling computers and other high-end components to Russia if they are manufactured with US technology, software or equipment.

Russia will be hit hard by the restrictions, as it lacks a strong national semiconductor program and relies on advanced computer technologies from Taiwan, the United States, Europe, Japan and Korea. from South.

The main funder of Russia’s technology program – state defense company Rostec – has been indirectly hit by the new sanctions imposed on the Joint Stock Commercial Bank Novikombank (Novikombank), which is 100% owned by Rostec.

Novikombank is one of many Russian banks targeted by sanctions from the United States and its allies. A notice from the US Treasury Department states that prior to this latest action, “Novikombank was subject to certain debt-related restrictions…but is now locked in.” He continues: “Novikombank’s parent company, Rostec, remains subject to certain debt restrictions.[.]”

Rostec has developed HPC systems based on Russian Elbrus processors, which were designed by the Moscow Center of SPARC Technologies (MCST) and manufactured by TSMC.