The US is widening sanctions on semiconductor chips, Japan sanctions Chinese companies co-operating with Russia, but the World Bank predicts Russian GDP growth.
US President Joe Biden’s administration is expanding sanctions on the sale of semiconductor chips and other goods to Russia, targeting third-party sellers in China and elsewhere, according to Bloomberg.
The changes, announced Wednesday, expand the scope of existing export controls and restrictions on US-branded goods, even if they are not manufactured domestically.
Chips are a key target of the changes. However, Russia still manages to obtain them from third countries for use in missiles and other materials critical to the battlefield. The sources said the US would publish broader product codes and also identify by address Hong Kong businesses suspected of shipping goods to Moscow. National Security Council spokesman John Kirby confirmed the new measures.
We’re going to continue to drive up costs for the Russian war machine, and this week we will announce an impactful set of new sanctions and export control actions.
US regulators are seeking to restrict sales of chips manufactured and sold abroad if they bear a US trademark or are made using US technology or US-related equipment. The country would identify third-party resellers and warn them that they were not allowed to ship US-made chips to Russia, one of the sources indicated. Resellers are often based in China.
Last year, Russia imported more than $1 billion worth of advanced chips. Some of those shipments were supplied by subsidiaries and subcontractors of US and European firms and transported by resellers and intermediaries.
Japanese sanctions
Sources close to the Japanese government say Tokyo is also considering imposing sanctions against Chinese firms helping Russia’s war effort, according to NHK.
Sanctions could include a ban on exports from Japan to businesses in third countries, including China. Once the sanctions policy is in place, Japanese Prime Minister Fumio Kishida will present it to the other G7 countries at a summit in Italy.
The meeting will take place on 13-15 June. The countries have been imposing sanctions against Russia for more than two years, but their ineffectiveness makes the leaders come up with new measures to restrict Moscow.
Russia’s GDP will grow by 2.9 per cent in 2024 and 1.4 per cent in 2025, according to the World Bank’s adjusted forecast. In 2026, analysts expect the Russian economy to grow by 1.1 per cent. According to its April forecast, the World Bank predicted that the Russian economy would grow by 2.2% in 2024 and by 1.1% in 2025.
In May, European countries request an assessment of a possible restriction on imports of Russian liquefied natural gas (LNG) as part of the next package of sanctions. Diplomats argue that they are seeking to iron out the 14th package before Hungary takes over the EU presidency in July.
