US Increases Tech Sanctions Against Russia, Targets Third-Party Sellers In China

White House spokesman John Kirby (photo: x @JKirbyWarFetish)

JAKARTA - The United States government plans to announce broader technology sanctions on the sale of semiconductor chips and other goods to Russia on Wednesday, June 12. They aim to target third-party sellers in China. This move is part of a broad push by President Joe Biden's administration to respond to Russia's efforts to avoid Western sanctions and cut off its war efforts against Ukraine.

"The US government will announce that it is expanding existing export controls to include US branded goods, not just those made in the United States," said several sources. This will identify certain entities in Hong Kong that are said to be sending goods to Moscow.

The White House and the US Department of Commerce made no immediate comment on the change, which Bloomberg first reported. White House spokesman John Kirby told reporters earlier on Tuesday, June 11 that Washington would announce new export sanctions and controls against Russia.

This news comes as US President Joe Biden prepares to depart early Wednesday to attend a summit in southern Italy with leaders from the G7 democracy group. One of the top priorities for G7 leaders is increasing support for Ukraine, which is now in the third year of resistance to the Russian invasion, and stripping Russian war engines.

US officials have expressed growing frustration over the growing trade between China and Russia, which they say allows Moscow to continue to arm its military. "Exports from China and other countries in the form of machine tools and other manufacturing equipment help Russia produce weapons that were previously imported," said two sources familiar with the matter.

Changes are needed to extend the definition of US goods covered by export controls, given that Moscow has now shifted its entire economy to focus on war.

Daleep Singh, Deputy White House's National Security Adviser for International Economy, told the Center for a New American Security last week that Ukrainian President Volodymyr Zelenskiy would meet with G7 leaders to emphasize the precarious situation facing Ukrainian forces in the battle against Russia.

Washington is also ready to announce significant new sanctions against financial and non-bank institutions that are part of the "tech and goods channel" that supplies the Russian military.