In 2023, Intel significantly downsized its operations in Russia, now with only one employee serving as the Intel AO and Intel Technical Director. Alina Klushina has been listed as a director for the two Intel entities in Russia. Last year, these dormant operations incurred losses of $2.31 million.
The rapid transformation of Intel's business in Russia began shortly after the Russo-Ukrainian conflict in February 2022. In April 2022, Intel announced the suspension of all operations in Russia, having previously decided to halt the shipment of technology to the country.
The timeline of Intel's business decline in Russia is as follows:
- 2021: Total revenue for Intel's Russian operations was approximately $80 million.
- 2022: Intel ceased operations. At the time of closure, the company had 1,200 employees in Russia.
- 2023: Revenue for Intel AO and Intel Technical dropped to zero, with losses amounting to $2.31 million. At the beginning of this year, Intel had 788 employees in Russia.
- 2024: Alina Klushina became the sole employee, serving as the Intel AO and Intel Technical Director.
Established in Russia nine years after its inception, Intel opened the Nizhny Novgorod R&D center in 2000. It gained a strong reputation in software, artificial intelligence (AI), machine vision, 5G, and Internet of Things development. The R&D center underwent a transformation in 2020, employing over 1,000 staff members at the time. Meanwhile, the Intel AO division reportedly encompassed information processing and software development, with Intel Technology responsible for marketing, technical support, and consulting.
Following the initial halt in Intel's products and services flow in Russia, the company restored the ability for users to download drivers to fulfill its service and warranty obligations. However, subsequent reports indicate that the sanctions imposed have, in fact, failed. For instance, in January this year, Russian entities purchased Intel and AMD chips worth up to $1.7 billion in 2023. Many of these chips reached Russia through indirect transfers.
Intel appears poised to retain its assets in Russia under the oversight of Alina Klushina, hoping for favorable developments such as the resolution of conflicts. Projecting a similar scale of losses in 2024 as in 2023 ($2-3 million) seems reasonable and may represent the minimum necessary to sustain its dormant operations.