Ahead of the G7 Leaders’ summit, the U.S. Department of State (DOS) and U.S. Department of the Treasury (USDT) announced new sanctions against China-based semiconductor companies, and over 300 individuals and entities in an effort to “degrade Russia’s capability to pursue its war of aggression against Ukraine.”
The USDT stated it would target Russia’s war effort in Ukraine with sanctions against Chinese semiconductor companies exporting components used in Russian military weapons and equipment. Sanctions against the Chinese entities were specified in the USDT press release:
China-based Gker Laser Technology Co Ltd (Gker Laser) has sent hundreds of thousands of dollars’ worth of goods, including laser diodes, optical fiber, and lasers, to Lassard. China-based Jinan Kewei Optics Co Ltd (Jinan Kewei) has sent hundreds of high priority HS code goods to LLS and U.S.-designated electronics company Staut Company Limited, including electronic integrated circuits, tantalum capacitors, and multilayer ceramic capacitors.
The DOS released a fact sheet expressing concern about the scale of exports from the People’s Republic of China to Russia, specifying seven PRC-based entities, stating:
We are particularly concerned by the scale and breadth of dual-use goods exports from the PRC. Russia continues to leverage sanctions evasion and circumvention networks to procure components such as microelectronics, which it uses to make weapons. Imports from the PRC are filling critical gaps in Russia’s defense production cycle to produce weapons, ramp up defense production, and bolster its military-industrial base. Today, the Department is designating seven PRC-based entities that have supplied goods supporting Russia’s war effort.
