Russia’s aviation authority said China has declined to provide Russian airlines with aircraft parts, some of which are subject to Western sanctions, Reuters reported March 10. The announcement came after Boeing and Airbus ceased providing Russia with aircraft components, which are subject to U.S. and EU export controls. A Russian official told the country’s news agencies that it will look to source parts from other countries, including Turkey and India, after a “failed attempt to obtain them from China,” according to the report. The U.S. Department of Commerce has threatened to penalize Chinese companies that help Russia evade export restrictions, including placing them on the Entity List (see 2203080053).
Even before new sanctions and export controls targeting Russia take full effect, many companies are deciding that compliance and due diligence costs are not worth the potential profits of continued business dealings in Russia and Belarus, former U.S. export control and sanctions officials said, speaking at a Washington International Trade Association panel on March 10.
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The Commerce Department could impose strict export controls, including through the Entity List, on Chinese companies that violate U.S. export restrictions against Russia, agency officials said this week.
The U.S. last week imposed new export controls on Russia’s oil refinery sector and added 91 entities to the Entity List for supporting Russian security efforts, building on a string of trade restrictions (see 2202240069 and 2203020072) meant to cut Russia off from importing goods to support and fund its military.
The Bureau of Industry and Security announced new export controls on Russia’s oil refinery sector and added 91 entities to the Entity List for supporting Russian security or military sectors. The new restrictions, which took effect March 3, build on an extensive set of U.S. sanctions announced within the last week in response to the invasion of Ukraine, meant to cut Russia off from importing goods that help support and fund its military.
While China may help Russia evade some export controls imposed by the U.S., the EU and others, the fear of secondary sanctions and other trade restrictions will likely deter it from providing significant help to Russia, said Emily Kilcrease, an energy, economics and security expert at the Center for a New American Security. Chinese companies could find themselves on the Entity List for aiding Russia’s export-control evasion efforts, Kilcrease said, and could also face strict trade restrictions by Europe.
The U.S. announced a host of new sanctions and export controls, including two new additions to the Entity List, to further penalize Russia and Belarus for the invasion of Ukraine. The measures place new restrictions on technology and software exports to Belarus, export controls on shipments of oil and gas extraction equipment to Russia, blocking sanctions on 22 Russian defense entities and a prohibition on Russian cargo planes flying to and from the U.S.
The White House today announced a series of additional sanctions and export controls targeting Russia and Belarus for the invasion of Ukraine, including new restrictions on technology and software exports to Belarus, export controls on shipments of oil and gas extraction equipment to Russia, blocking sanctions on 22 Russian defense entities and a prohibition on Russian cargo planes flying to and from the U.S. Commerce will also add more entities to its Entity List that support Russian and Belarusian security services and defense efforts.
The U.S. is imposing additional sanctions and new export controls following Russia's "further invasion of Ukraine," as promised by President Biden in his Feb. 22 speech (see 2202220003). The sanctions cover financial restrictions on Russian state-owned enterprises, banks, and individuals, while the export controls set restrictions on a variety of high-tech products. The new measures are part of an "unprecedented level of multilateral cooperation" according to the White House.