US Unveils Additional Sanctions on Russia, Chinese Companies Supplying It
The Biden administration announced June 12 that it is taking additional measures to degrade Moscow's war machine, including sanctioning more than 300 entities and people in Russia and other countries and implementing several new export restrictions, including adding five entities and eight addresses to the Entity List.
The State Department is sanctioning more than 100 targets, including seven Chinese companies that provide microelectronics and other dual-use goods to Russia's defense industrial base. The companies are 3NOD Digital Hong Kong Ltd., AsiaLink Shanghai Int’l Logistics Co. Ltd., Beijing Deepcool Industries Co. Ltd., Guangdong Pratic CNC Technology Co. Ltd., Mile Hao Xiang Technology Co. Ltd., Poly Technologies Inc (PTI) and Wuhan Tianyu Information Industry Co. Ltd.
“The United States remains concerned by the scale and breadth of exports from [China] that supply Russia’s military industrial base,” Secretary of State Antony Blinken said in a statement. "The department is designating [Chinese] companies providing Russia with a wide range of dual-use goods that fill critical gaps in Russia’s defense production cycle."
The State Department is also targeting Russia’s future energy, metals and mining production and export capacity; Belarusian entities that support Russia’s war machine; those responsible for the forced deportation of Ukrainian children to Russia and Belarus; and an individual who worked on Russia’s behalf to interfere in Moldova’s elections.
The Treasury Department is sanctioning more than 200 targets, including transnational networks that launder gold for a designated Russian gold producer, support Russia’s production of unmanned aerial vehicles, and procure materials for Russia’s biological and chemical weapons program.
Treasury also is broadening the definition of Russia’s military industrial base to increase the sanctions risks that foreign financial institutions face if they aid Russia's military. The Office of Foreign Assets Control issued updated guidance for these financial institutions.
Treasury "is making clear that foreign banks risk being sanctioned for dealing with any entity or individual blocked under our Russia sanctions, including designated Russian banks," National Security Adviser Jake Sullivan told reporters.
Treasury, in coordination with the Bureau of Industry and Security, is also restricting Russia’s access to U.S. software and information technology for military purposes. “These actions are not intended to disrupt civilian access to software and aim to protect access by Russian and Belarusian civil society and the broader public to information communications technology,” BIS said.
The five additions to the Entity List are Volgogradpromproyekt (VPP) of Russia, and Chinese entities Advantage Trading Co. Ltd., Duling Technology (HK) Ltd., FY International Trading and Shenzhen Daotong Intelligent Aviation Technology Co. Ltd (Autel).
BIS’s other new export restrictions include cracking down on diversion through shell companies by requiring the foreign corporate services industry to use enhanced client screening; restricting trade in more items destined for Russia and Belarus, such as by adding controls on more than 500 additional 6-digit harmonized tariff system codes; tightening the availability of license exceptions for Russia and Belarus; and issuing temporary denial orders, which take away export privileges.
The administration’s announcement came a day after a White House official said a new set of export controls and sanctions against Russia would be unveiled this week (see 2406100064).