President Joe Biden’s administration is set to widen sanctions targeting semiconductor sales and other goods to Russia, aiming to choke off resources fueling Vladimir Putin’s war in Ukraine. The latest sanctions focus on third-party sellers, particularly in China and other nations, that supply chips and other technologies critical to Russia’s military operations.
The changes, set to be announced on Wednesday, expand existing export controls by targeting U.S.-branded goods, even if they are not made domestically. This new measure is part of a broader effort to restrict Russia’s access to essential technologies supporting its war effort in Ukraine, according to sources familiar with the plan.
Semiconductors at the Center of Sanctions
Chips have become a key focus of the sanctions, as Russia continues to source semiconductors from third-party countries for use in weapons systems, including missiles. Despite previous efforts to block Moscow’s access to critical technologies, Russia has circumvented these restrictions by using intermediaries. The new sanctions aim to close these loopholes by identifying specific product codes and third-party sellers involved in reselling U.S.-branded goods to Russia.
According to sources, the U.S. will also name Hong Kong entities suspected of funneling chips and other technologies to Moscow. National Security Council spokesperson John Kirby confirmed the new measures, stating, “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.”
Tightening the Net on Third-Party Sellers
One of the most significant changes under the expanded sanctions will be enforcement against third-party sellers of U.S.-branded goods. Previously, the U.S. focused primarily on products of U.S. origin, but the new rules will target goods made abroad if they are based on U.S. technology or equipment. This means that even chips manufactured outside the U.S. but branded with American companies’ names will be subject to sanctions if they end up in Russia.
The sanctions will also publish addresses—without known company names—of entities the U.S. accuses of shipping restricted goods to Russia. Eight addresses in Hong Kong linked to chip reshipments will be among the first to be flagged, marking a new approach to publicly identifying violators.
Resellers selling to Russia for non-military purposes can apply for licenses, but those caught violating the sanctions face criminal penalties and potential restrictions on their own access to inputs, according to the sources.
Broader Sanctions Package
In addition to chip sales, the U.S. is expanding its crackdown on companies violating export controls in other sectors, including aviation. Temporary denial orders will be issued to firms that have flouted sanctions, and new restrictions will be imposed on enterprise software used in Russia, effectively halting updates for that software.
The expanded sanctions come as Biden prepares to meet with other world leaders at a Group of Seven (G7) summit in Italy, where further support for Ukraine and new ways to constrain Russia will be key topics. Biden is also scheduled to meet Ukrainian President Volodymyr Zelenskiy on Thursday.
Circumventing Restrictions
Despite ongoing efforts by the U.S. and the European Union to restrict Russia’s access to military technologies, Moscow has managed to continue sourcing critical components through third-party nations. Last year alone, Russia imported over $1 billion in advanced chips, often through resellers, intermediaries, and subsidiaries of Western firms.
More Read
The European Union is also discussing its own measures to enhance export control enforcement, including holding companies responsible for the actions of their subsidiaries. However, several EU member states have expressed concerns that such proposals may impose an undue burden on businesses and may be difficult to enforce.
The U.S. Commitment to Ukraine
Biden’s administration has ramped up support for Ukraine, announcing a $225 million aid package last week. The U.S. is also allowing Ukraine to strike certain military targets in Russia using U.S.-supplied weapons, a shift in policy designed to give Ukraine more flexibility in its defense against Russian aggression.
As Biden prepares for a potential rematch with former President Donald Trump in the 2024 election, U.S. support for Ukraine has become a key issue. Trump has criticized U.S. aid to Ukraine, raising concerns about future American commitment to Kyiv if he returns to office.
World leaders are also heading to a weekend summit on Ukraine in Switzerland, where Vice President Kamala Harris and National Security Advisor Jake Sullivan will represent the U.S. in discussions on further aid and sanctions to support Ukraine.
The new sanctions mark a continued effort by the Biden administration to cut off key resources that sustain Russia’s war efforts, as the conflict in Ukraine shows no signs of abating.
