EU grants Volvo, Polestar Russia-sanction waivers over drone-linked chip supply

Volvo Cars and Polestar obtained EU exemptions from Russia sanctions to prevent production stoppages, as their supply chain includes a Chinese semiconductor maker whose components were found in Russian drones and ammunition in Ukraine. The waivers highlight the tension between enforcing sanctions and protecting European auto production reliant on Chinese chips. The specific chipmaker and scope of the exemption remain undisclosed.