WASHINGTON: The United States escalated its sanctions against Russia, focusing on China-based firms supplying semiconductors to Moscow. This strategic move aims to undermine Russia’s military capabilities amid the ongoing conflict in Ukraine. The expanded sanctions represent a concerted effort to exert economic pressure on Russia.
US targets chips sent to Russia via China in expanded sanctions amid Ukraine conflict. Moreover, they expect the sanctions to gradually undermine Russia’s economy.
Among the steps, the US Treasury said it was raising “the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy,” effectively threatening them with losing access to the US financial system.
The US announced measures to limit Russia’s access to certain US software and IT services. Additionally, in collaboration with the State Department, over 300 individuals and entities across continents were targeted. These actions aim to constrain Russia’s military industrial base and its global network.
The Commerce Department is cracking down on shell companies in Hong Kong accused of diverting semiconductors to Russia. This move is set to impact approximately $100 million worth of high-priority items, including crucial chips.
The senior Commerce official, speaking anonymously to reporters, revealed plans to broaden the list of prohibited imports for Russia. This expansion will include not only products originating from the US but also goods branded with US intellectual property or technology. The move aims to further restrict Russia’s access to critical technologies amid ongoing geopolitical tensions.
Ukrainian officials report discovering US-made chips and other technology in various Russian military equipment recovered from battlefields. These findings underscore concerns about the indirect supply of US technology to Russia’s military capabilities.
Moreover, they believe US targets chips will both make it harder for Moscow to wage war and, over time, weaken Russia’s economy.
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