The United States on Thursday restricted exports to Russia of US-made products as well as foreign-produced goods manufactured with American technology, following the invasion of Ukraine. According to six experts on US business law, here’s how the regulations are expected to affect US tech companies.
Which technology has recently been banned from export in Russia?
US companies now must obtain licenses to sell computers, sensors, lasers, navigation equipment, and telecommunications, aerospace, and marine equipment. The United States will decline almost all requests.
“We expected something broad, and it certainly was broad,” said Ama Adams, partner at law firm Ropes & Gray.
The new rules force companies manufacturing technology products overseas with US equipment to obtain US licenses before shipping them to Russia.
A similar ban was first applied in recent years to companies shipping to Chinese technology giant Huawei.
Which US companies will be impacted the most?
Legal experts said many companies may choose to cautiously suspend all sales to Russia.
US exports to Russia were limited last year to about $6.4 billion, US Census data show, with machinery and vehicles in larger categories in previous years.
The most severe technical hit for Russia could come from the embargo on foreign goods.
For example, the Semiconductor Industry Association (SIA), which represents US chipmakers, stated that “Russia is not a significant direct consumer of semiconductors” and that Russia’s communications and technology spending is “only $$2 billion out of a multi-trillion global market”. 25 billion in 2019.”
But many products made in Asia and destined for Russia include chips made from US tooling. More than two dozen members of the European Union, as well as the United Kingdom, Canada, Japan, Australia and New Zealand, are imposing similar export restrictions to limit Russia’s options.
How will Russia be affected?
Emily Kilkridge, senior fellow at the Center for a New American Security and former deputy assistant US trade representative, said the sanctions would freeze Russia’s technology where it is today.
“You won’t be able to bring new technology into the country,” she said.
William Rensch, a trade expert at the Center for Strategic and International Studies and a former export official at the Department of Commerce, expects a slower growth of the effect.
“Eventually they will have pain, but maybe not for months,” he said. “It’s not an immediate body shock.”
The sanctions and sanctions are not as widespread as US trade actions on Iran and North Korea, but they could have major consequences globally as Russia becomes more connected with the world economy, the lawyers said.
Which technology is not included in the new restrictions?
Measures include carvings for consumer goods such as home electronics, humanitarian goods and technology needed for flight safety. Cell phones are allowed as long as they are not sent to Russian government employees or certain associates.
Consumer encryption technologies are also not banned, which one lawyer described as a sign that the United States and its allies do not want to disrupt protesters and the media.
Prevents the US from imposing sanctions on more items later.
South Korea was not listed among the participating countries on the rules, and its aid would be crucial to blocking Russia’s access to the chips, Killcrease said.
A senior US administration official said on Thursday that more countries are expected to join.
The South Korean embassy in Washington did not immediately respond to a request for comment.
South Korea said on Thursday it would engage in unspecified multilateral economic sanctions on Russia in response to its military operations in Ukraine, but was not considering adopting unilateral measures.
Which companies can benefit from the new rules?
Kilkrease and legal experts expect Chinese tech companies to fill some of the vacancies created by sanctions on Western tech companies, though Kilkrease said US regulations would discourage them. But a senior US administration official said China cannot supply Russia’s critical military needs, especially for the most advanced chips.
read all breaking news, today’s fresh news And Assembly Election Live Updates Here.
,