US to Expand Sanctions on Semiconductor Chip Sales to Russia – [your]NEWS
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US to Expand Sanctions on Semiconductor Chip Sales to Russia – [your]NEWS

BY COMFORT OGBONNA

The U.S. government plans to announce wider sanctions on the sale of semiconductor chips and other goods to Russia on Wednesday, aiming to target third-party sellers in China, according to sources familiar with the plans. These actions are part of a broader initiative by the Biden administration to counter Russia’s efforts to bypass Western sanctions and disrupt its war effort against Ukraine.

The administration will expand existing export controls to include U.S.-branded goods, not just those made in the United States, the sources said. It will also identify certain Hong Kong entities that are allegedly shipping goods to Moscow. The White House and Commerce Department had no immediate comment on the changes, which were first reported by Bloomberg.

White House spokesperson John Kirby told reporters earlier Tuesday that Washington would announce new sanctions and export controls against Russia.

This news emerged as U.S. President Joe Biden prepared to leave early Wednesday for a summit in southern Italy with leaders from other Group of Seven democracies. One of the top priorities for the G7 leaders is to increase support for Ukraine, now in its third year of resisting Russia’s invasion, and to weaken the Russian war machine, one of the sources said.

U.S. officials have expressed increasing frustration over China’s growing trade with Russia, which they say is enabling Moscow to continue arming its military. According to two sources familiar with the matter, exports of machine tools and other manufacturing equipment from China and other countries are helping Russia produce weapons it previously imported.

Officials argue that changes are needed to broaden the definition of U.S. goods covered by export controls, given that Moscow has now shifted its entire economy to focus on the war. Daleep Singh, the White House Deputy National Security Adviser for International Economics, said at the Center for a New American Security last week that Ukrainian President Volodymyr Zelenskiy would meet with G7 leaders to emphasize the dire situation facing Ukrainian forces in their battle against Russia.

Washington is also preparing to announce significant new sanctions against financial institutions and non-banks involved in the “technology and goods channels” supplying the Russian military, the sources said.

Posted by COMFORT Ogbonna

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