US Imposes New Russia Sanctions, Preparing Expanded Export Controls
The U.S. this week imposed new sanctions against Russia for its “destabilizing” activities in Ukraine and privately previewed a harsher set of potential trade restrictions, including major new export controls on chip equipment. Although it remains unclear if those specific export restrictions would be coordinated with allies, the U.S., Germany and the U.K. all said Jan. 20 that they are ready to impose “massive consequences and severe economic costs” on Russia if it continues down a path to war.
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The latest U.S. sanctions, also announced Jan. 20, target four Russian intelligence operatives working for the Russian Federal Security Service (FSB), which is sanctioned by the Office of Foreign Assets Control and designated on the Commerce Department’s Entity List. The designations target Taras Kozak and Oleh Voloshyn, two members of the Ukrainian parliament that have been recruited by Russia to prepare to take over the Ukrainian government. Also designated is Volodymyr Oliynyk, who works for the FSB to gather information about Ukrainian critical infrastructure, and Vladimir Sivkovich, who worked with Russian intelligence on “influence operations” in Ukraine.
Although the sanctions are meant to “highlight” and “undercut” Russia's activities in Ukraine, they are “separate and distinct from the broad range of high impact measures” the U.S. and allies “are prepared to impose in order to inflict significant costs on the Russian economy and financial system if it were to further invade Ukraine,” the State Department said.
Those measures could include a range of new restrictions on exports to Russia in a bid to cut off Russia’s access to global electronics supplies (see 2112220030). The White House previewed those potential restrictions on a call with the Semiconductor Industry Association this week, Reuters reported Jan. 19, adding that the chip industry should be ready for “unprecedented actions.”
The SIA has sought clarity from the White House about whether new Russia sanctions could mirror those imposed against Iran and North Korea, the report said, which prohibit most trade except for some humanitarian-related transactions. SIA also asked whether the U.S. could expand its foreign-direct product rule to cover Russia, which would increase restrictions on foreign exports to Russia if they are produced with a certain level of U.S.-origin content. An SIA spokesperson didn’t respond to a request for comment.
White House press secretary Jen Psaki declined to say whether President Joe Biden has signed off on a specific sanctions package, but said many options are being considered. “We're continuing to consider a range of options and haven't ruled out any that have been reported,” Psaki told reporters Jan. 20. “We need to be prepared for a range of scenarios, and we have a range of tools and tactics at our disposal.” A White House spokesperson told Reuters that “any details in this regard that make their way to the public only demonstrate the extensive detail and seriousness with which we are discussing and are prepared to impose significant measures in coordination with our allies and partners.”
The White House may also be considering fast-tracking export authrotizations for certain weapons sales to Ukraine. The State Department recently approved export licenses for Latvia, Estonia and Lithuania to sell U.S.-made weapons to Ukraine, Politico reported Jan. 19. Those export requests had been moving slowly through the State Department’s licensing process but may have been expedited as Ukraine prepares to defend against a Russian invasion, the report said. A State Department spokesperson didn’t comment.