The US Sanctions against Russia are going to limit its access to both low- and high-tech commodities from other countries. The Commerce Department has produced a list of enhanced license policies and procedures in response to Russia’s continued invasion of Ukraine, as first reported by Reuters.
Results of US Sanctions against Russia
As a result of the new US Sanctions against Russia, Vendors that wish to ship to Russia will need to seek licenses for commodities that previously did not require one. Microelectronics, telecommunications equipment, sensors, navigation equipment, avionics, maritime equipment, and aircraft components are among the things on the list.
In addition, the US is adding companies to the entity list that have been designated as “military end-users” because of their claimed ties to the Russian military. If they use US-produced tools, technology, or software in their products, any company wishing to transport items made elsewhere to those military end-users will need to secure licenses from the US. These penalties, according to the government, will “seriously damage Russia’s capacity to buy products it cannot create itself.”
License requests will be reviewed “under a policy of denial,” which implies the Commerce Department will decline practically all of them, according to the new rules. Only in exceptional circumstances, such as those linked to aviation and maritime safety, as well as humanitarian concerns, will the administration grant licenses.
Despite the carveouts, former Commerce Department official Kevin Wolf told Reuters that the laws are so complicated that many companies may simply quit doing business with Russia to avoid mistakes. Another former official, Cordell Hull, anticipated that the restrictions would be difficult to enforce.
President Joe Biden
President Joe Biden stated partner countries are adopting or have expressed the desire to adopt comparable sanctions during a speech unveiling the additional measures. The list of partner countries includes 27 European Union members, including Italy, France, and Germany, as well as Canada, Australia, Japan, and the United Kingdom, to mention a few. “We predict that we will cut off more than half of Russia’s high-tech imports between our actions and those of our friends and partners,” he said.