The United States government is reportedly expanding sanctions on Russian semiconductor chips and other goods to further weaken Putin’s war machine in Ukraine. The targets are third-party sellers in China and elsewhere, including Hong Kong.
According to reports, these changes expand the scope of existing export controls to include U.S. branded goods, even if they are not produced domestically. The new measures will release a broader set of product codes and identify entities in Hong Kong accused of rerouting goods to Russia.
A spokesperson for the U.S. National Security Council confirmed the upcoming new measures, aimed at helping Russia acquire war supplies and tightening regulations on “financiers.” This comes as Biden prepares to participate in the G7 summit, one of its primary goals being to ensure aid to Ukraine and further restrict Russia.
Despite multiple rounds of trade restrictions, Russia has been importing necessary goods through third countries or intermediary networks. Last year, Russia imported over $1 billion worth of advanced chips. The EU is currently discussing proposals to require companies to strengthen checks and hold accountable the behavior of companies under their control, although some member states are hoping to relax these proposals due to concerns about imposing excessive burdens on companies.