WikiLeaks: Intel threatened to move Russian jobs to India

04.12.2010
Intel engaged in high-level talks with Russian officials and ultimately said it would pull research and development work from the country unless it could get around Russia's tough encryption import laws, according to a U.S. Department of State cable published by WikiLeaks.

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 capitalizing 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.

"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."