White House Prepares Curbs on Russia’s Access to U.S. Technology


Kevin Wolf, a accomplice in worldwide commerce at Akin Gump who labored in export controls below the Obama administration, mentioned the White Home may tailor its use of export controls to focus on sure strategic sectors, for instance firms within the aerospace or maritime business, whereas bypassing merchandise utilized by the Russian populace, like washing machines.

“They’re making it clear they’re not attempting to take motion that harms odd Russians,” Mr. Wolf mentioned.

Andy Shoyer, co-lead of worldwide arbitration, commerce and advocacy for Sidley Austin, mentioned the restrictions appeared more likely to give attention to semiconductors and semiconductor tools. The novel export controls that the US wielded towards Huawei have a robust attain with regards to semiconductors, since even chips made overseas are principally manufactured and examined utilizing equipment primarily based on American designs, he mentioned.

“It’s not simply what’s bodily exported from the U.S.,” Mr. Shoyer mentioned. “It may embody a considerable quantity of manufacturing, as a result of a lot of the semiconductor business depends on U.S. expertise.”

The worldwide semiconductor business, which has been roiled by shortages and provide chain disruptions all through the pandemic, may face extra disruptions given Ukraine’s function within the semiconductor provide chain.

Stacy Rasgon, a senior analyst at Bernstein Analysis, mentioned Ukraine was an necessary location for the purification of neon, a fuel used within the manufacturing of semiconductors. Whereas neon prices have been only a tiny fraction of what semiconductor firms pay, “probably placing a big fraction of purification capability in danger sounds considerably ominous for an business already scuffling with shortages,” he mentioned.

A spokesman for the Semiconductor Trade Affiliation mentioned the group was nonetheless evaluating potential impacts associated to Russia’s and Ukraine’s roles as supplies suppliers. However he mentioned Russia was not a big direct shopper of semiconductors, accounting for lower than 0.1 p.c of worldwide chip purchases, in line with the World Semiconductor Commerce Statistics group.

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