Ukraine war: US spells out sanctions on Russia, heaping more pressure on China to comply

Among the various restrictions, if a Russia-bound item was made using American tools or equipment, it could be covered by Washington’s sanctions

But while Chinese firms may try to avoid running afoul of US sanctions, overall China-Russia trade should remain strong because most products will not be affected

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Shipping containers are stacked up at the Port of St. Petersburg. Certain goods and technology may no longer be brought into Russia from the EU and other Western countries due to Washington-led sanctions levied against Moscow for invading Ukraine. Photo: DPA

Published: 11:00pm, 29 Mar 2022Updated: 12:56am, 30 Mar 2022

The United States has warned that exports to Russia – including China’s – in which US content accounts for more than 25 per cent of the overall value, must first be licensed by Washington to avoid running afoul of sanctions, according to a senior US commerce official.

Matthew Borman, deputy assistant secretary for export administration with the US Department of Commerce, said during a teleconference on Tuesday that possible sanctions, such as those cutting off US sources, could “have a significant impact” on companies that misuse “US input in some way – US-origin input”.

Companies found breaching restrictions could face fines or even jail time if they are subject to US jurisdiction, or a complete ban on any kind of transactions if they are not, Borman said, marking the first time a senior US official has spelled out conditions of the sanctions in the wake of Russia’s invasion of Ukraine that began on February 24.

And even if a Russia-bound product does not contain US content, it could still be subject to Washington’s restrictions if based on US software or technology, or if it was produced on an assembly line that uses American tools or equipment.

Beijing, which has refrained from publicly condemning Russia, has been growing increasingly concerned about the risk of potential secondary sanctions as Washington and its allies keep pressing it to take a tougher stance on Moscow, according to diplomatic sources and observers.