WikiLeaks: Intel threatened to move Russian jobs to India

Lobbying efforts helped to get cryptographically secure hardware into Russia

PTI | December 8, 2010



Intel, the American chip giant, won a key concession from Russian government after threatening to shift research and development (R&D) work from the country to India or China, according to a US Department of State cable leaked by the whistle-blower WikiLeaks.

Intel held high-level talks with Russian officials last year and ultimately said it would pull R&D work from the country unless it could get around Russia's tough encryption import laws, Computerworld quoted the secret US document as saying.

The November 3, 2009 cable from the American Embassy in Moscow describes the intensive lobbying efforts required to get cryptographically secure hardware into the country for use by Intel's 1,000 Russian engineers.

"Intel was able to by-pass the cumbersome licensing process by engaging in high-level lobbying and capitalising on Russia's desire to become a 'knowledge-based' economy," the cable reads.

Some countries put a limit on, or even ban, devices entering the country that can store encrypted data, such as laptops and mobile phones. That can make it hard for technology companies with employees working abroad to lock down their intellectual property.

According to the State Department cable, the issue was a deal-breaker for Intel, which told Russian officials that unless it could quickly import encrypted development kit hardware, it would have to lay off more than 200 engineers and move R&D work to India or China, the report said.

"This high-level lobbying secured Intel a meeting with key FSB (Federal Security Service) officials," the cable states. "Intel was able to demonstrate the reasonableness of its request and, as a result, by-passed the current extensive licensing requirement."

The waiver may have been good news for Intel, but because the underlying regulations remained in place it did not "appear to represent a breakthrough in the importation of commercial products with cryptographic content," the cable states.

Former Intel Chairman and CEO Craig Barrett met with Russian President Dmitry Medvedev to discuss "this and other issues," said Intel spokesman Chuck Mulloy in an e-mail.

"We didn't threaten anyone," he said. "We lobbied and negotiated with the Russian government on behalf of ourselves and OEMs and distributors to make it easier. This is all routine stuff when it comes to dealing with governments around the world," the spokesman was quoted as saying by Computerworld.

 

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter