Russia’s industry is aimed at consumers, not consumers, if Biden’s export restrictions are imposed by Reuters

Author: Karen Freifeld

(Reuters) – Roadmap administration plans to relieve daily Russians of the burden of US export controls if Russia invades Ukraine, https://www.reuters.com/world/europe/russian-buildup-ukraine-border-includes-blood- wounded-us -officials-say-2022-01-28 and focused on the industrial sectors, a White House official said.

A key trade official said in a speech on Friday that “key people” will also face “severe penalties”.

The comments narrow the scope of potential import restrictions for Russia, which he described as a broader disturbance of the Russian economy, such as the industrial sector and consumer technologies such as smartphones.

“We cannot anticipate any action, but we intend to take measures that will undermine Russia’s industrial capacity and industrial production capacity over time, not to pursue individual Russian consumers on a daily basis,” said White House National Security Officer Peter. Harrell said he had little media coverage at a virtual conference for the Massachusetts Export Center on Thursday.

Harrell, a member of the National Security Council, said the United States was ready, after the invasion of Ukraine, “to impose harmful financial costs on Russia’s major financial institutions and to impose strict export controls that will degrade.” Russia’s industrial capacity in the medium and long term. “

Thea Kendler, head of the Commerce Department, speaking at the export meeting on Friday, said “We are anticipating heavy sanctions on people and industries that were not on the table in 2014.” That same year, Russia invaded Crimea and annexed Ukraine.

President Joe Biden said three days ago that he would consider personal sanctions https://www.reuters.com/world/europe/us-seeks-protect-europes-energy-supplies-if-russia-invades-ukraine-2022-01 – 25 If Vladimir Putin were to send Russian forces to Ukraine.

Harrell said he hopes the hundreds of hours he and his colleagues have spent developing measures in the past two months will never see the light of day, but that they are ready to impose broad measures.

The dual strategy includes financial sanctions against Russia’s major financial institutions “to trigger capital flight, to trigger inflation, to offer Russian central banks bailouts to their banks … so Putin feels the costs on day one,” Harrell said.

Export control measures would be announced within the package, but would probably not have the same immediate effect, and instead “ruin Russia’s industrial production in a couple of key sectors.”

Harrell did not specify the sectors, but other White House officials mentioned aviation, marine, robotics, artificial intelligence, quantum computing and defense.

A person familiar with the matter told Reuters on Thursday that he was focusing on strategic sectors that are important to Russia’s leadership. Asked about the profit of the Russian oil and gas sector, the person said that nothing is off the table.

In a subsequent comment, White House spokeswoman Emily Horne also said the option was not removed.

“We and our allies are ready for a full range of high-impact sanctions and export controls, both in the wake of a Russian invasion and in the ensuing waves,” Horn said.

Harrell said he hoped the European Union would join in the effort. “Based on the discussions I’ve had and the people above me … we’re pretty sure that if Russia invades Ukraine we’ll have a very high level of alignment with Europe.”

Sources said the U.S. could also apply a rule to send items like foreign technology semiconductors made by U.S. companies to Russia, as it did to China to reduce China’s global chip supply, which it sees as a threat.

A person familiar with the matter said on Thursday that U.S. officials are also holding talks with Taiwan and South Korea, where the main chip makers are located, and with countries in Southeast Asia, where some vessels are made.