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White House prepares curbs on Russia’s access to U.S. technology

WASHINGTON >> The Biden administration warned Wednesday that it had prepared additional measures aimed at cutting off Russia from advanced technology critical to its economy and military in the event of further aggression by President Vladimir Putin toward Ukraine.

The United States on Tuesday announced sanctions on two Russian banks and curbs on Russia’s sovereign debt, effectively isolating the country from Western financing. President Joe Biden also announced further sanctions on the Nord Stream 2 natural gas pipeline and its corporate officers.

Export controls could ratchet up the pressure on Russia by preventing the country from obtaining semiconductors and other advanced technology used to power Russia’s aerospace, military and tech industries.

“If he chooses to invade, what we’re telling him very directly is that we’re going to cut that off; we’re going to cut him off from Western technology that’s critical to advancing his military, cut him off from Western financial resources that will be critical to feeding his economy and also to enriching himself,” Deputy Treasury Secretary Wally Adeyemo said Wednesday on CNBC.

The Biden administration has not clarified what specific restrictions it would impose on the products Russia imports. But the actions and statements of administration officials suggest they could repurpose a novel measure that the Trump administration turned to to cripple the business of Huawei, a Chinese telecom company, in 2020, export control specialists said.

The tool, called the foreign direct product rule, allows U.S. officials to block more than just exports from the United States to Russia, which totaled just $4.9 billion in 2020. It also allows U.S. officials to restrict exports to Russia from any country in the world if they use American technology, including software or machinery.

Companies can seek licenses to sidestep the restrictions, but they are likely to be denied.

“We produce the most sophisticated technological inputs across a range of foundational technologies — AI, quantum, biotech, hypersonic flight, robotics,” said Daleep Singh, deputy national security adviser. “As we and our partners move in lockstep to deny these critical technology inputs to Russia’s economy, Putin’s desire to diversify outside of oil and gas — which is two-thirds of his export revenue, half of his budget revenues — that will be denied.”


This article originally appeared in The New York Times.


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