The U.S. government is set to announce broader sanctions on Wednesday aimed at restricting the sale of semiconductor chips and other goods to Russia, sources familiar with the plans revealed on Tuesday. The objective is to crack down on third-party sellers, particularly in China, as part of the Biden administration’s strategy to impede Russia’s ability to sustain its war effort against Ukraine.
The forthcoming sanctions will expand current export controls to encompass U.S.-branded goods manufactured outside the United States, according to the sources. This includes identifying specific entities in Hong Kong that are allegedly facilitating shipments to Moscow.
Both the White House and the Commerce Department have yet to comment on these developments, which were initially reported by Bloomberg. Earlier on Tuesday, White House spokesperson John Kirby confirmed that new sanctions and export controls targeting Russia were imminent.
This news coincides with President Joe Biden’s scheduled departure early Wednesday for a summit in southern Italy with leaders from other Group of Seven (G7) democracies. A primary agenda item for the G7 leaders is to enhance support for Ukraine, now enduring its third year of resisting Russia’s invasion, and to undermine Russia’s military capabilities, according to one source.
U.S. officials have voiced increasing frustration over China’s growing trade with Russia, which they argue is enabling Moscow to continue arming its military. Exports from China and other nations of machine tools and manufacturing equipment are aiding Russia in producing weapons domestically that it used to import, sources familiar with the situation indicated.
To counteract this, changes to the export controls will broaden the scope of U.S. goods subject to restrictions, reflecting Moscow’s shift towards a war-focused economy. Daleep Singh, White House deputy national security adviser for international economics, emphasized last week at the Center for a New American Security that Ukrainian President Volodymyr Zelensky would meet with G7 leaders to highlight the critical challenges faced by Ukrainian forces in their conflict with Russia.
Additionally, Washington is preparing to introduce significant new sanctions against financial institutions and non-bank entities involved in the “technology and goods channels” supplying the Russian military, the sources said.
Written by Alius Noreika
