The Biden administration said on Friday that it would add more than 100 companies and organizations in Russia, China and several other countries to a restricted trade list and take other measures, as it widens its net to try to capture more advanced technology that is flowing to the Russian military.
The new rules aim to disrupt the procurement networks that are funneling semiconductors and other technology to Russian forces, who then use them to wage war against Ukraine. They will give the U.S. government expanded authority to prevent products made with U.S. technology from being shipped to Russia, even if those products are manufactured in countries outside of the United States.
The penalties also included the addition of 123 entities in Russia, Crimea, China, Turkey, Iran and Cyprus to a so-called entity list. Suppliers are barred from sending companies on the entity list certain products without first obtaining a government license.
The government also added certain addresses in Hong Kong and Turkey to the list that were known to set up shell companies, meaning any further shell companies registered to those addresses would face trade restrictions.
The entity list additions include several uncovered in a recent investigation by The New York Times, including an office at 135 Bonham Strand in Hong Kong’s financial district that specialized in setting up shell companies. The office was the place of registration for at least four companies that funneled millions of restricted chips and sensors to military technology companies in Russia, the investigation found.
The additions bring the number of organizations that the Biden administration has added to the entity list in relation to Russia’s war in Ukraine to more than 1,000.
On Friday, the Departments of State and Treasury also added nearly 400 individuals and organizations to sanctions lists for helping to sustain Russia’s war effort. The sanctions target networks that procure ammunition for Russia, help the country with sanctions evasion, launder gold and procure electronics components, among other actions, the Treasury Department said.
The Biden administration joined with dozens of other governments more than two years ago to impose extensive sanctions on Russia, and restrictions on the sale of technology to the country. But the administration has faced tough questions about the effectiveness of the restrictions. A surge in trade through Russia’s neighbors and allies has indicated that Russia continues to buy many sanctioned products through new channels. The bureau that is charged with enforcing the rules has a limited budget and aging technology systems, and some argue it is already stretched thin.
In recent months, the Biden administration has been particularly critical of the role that Chinese companies have played in keeping Russia’s industry and economy afloat. U.S. officials have threatened tougher actions if China does not curtail its economic role.
“Russia would struggle to sustain its assault on Ukraine without China’s support,” Antony J. Blinken, the U.S. secretary of state, said in a visit to Beijing in April. “If China does not address this problem, we will.”
Jake Sullivan, the national security adviser, and other U.S. officials are expected to travel to China next week to discuss this and other issues, including another potential meeting between President Biden and China’s leader, Xi Jinping.
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