US To Expand Sanctions On Semiconductor Sales To Russia, Targeting Chinese Sellers

The U.S. government is set to announce broader sanctions to control the sale of semiconductor chips and other goods to Russia in a move to target third-party sellers in China, reports say.

The expanded measures, which are likely to be announced Wednesday, are part of the Biden administration's efforts to stop Russia's attempts to bypass Western sanctions and diminish its war capabilities against Ukraine, according to Bloomberg.

The new regulations will extend existing export controls to include U.S.-branded goods, not just those manufactured in the United States. Certain Hong Kong entities identified as shipping goods to Moscow will also be named in the new sanctions, Reuters reported.

Chips, in particular, are a key target of the changes, the Bloomberg report said.

White House spokesperson John Kirby said Tuesday that Washington would unveil new sanctions and export controls against Russia.

"We're going to continue to drive up costs for the Russian war machine, and this week we will announce an impactful set of new sanctions and export control actions," Kirby said.

The news comes amid President Joe Biden's departure for a summit in southern Italy with other Group of Seven (G7) leaders. A primary focus of the G7 summit is to increase support for Ukraine, now in its third year of resistance against Russia's invasion, and to incapacitate the Russian war machine.

U.S. officials have expressed increasing frustration over China's escalating trade with Russia, which they claim is enabling Moscow to continue arming its military.

Machine tools and manufacturing equipment exported from China and other nations are reportedly aiding Russia in producing weapons that it previously imported.

Officials argue that expanding the definition of U.S. goods covered by export controls is necessary, given that Russia has reoriented its entire economy to support the war effort.

Meanwhile, Ukraine President Volodymyr Zelenskiy is scheduled to meet with G7 leaders to highlight the severe challenges faced by Ukrainian forces.

In addition to the new export controls, Washington is also expected to announce substantial sanctions against financial institutions and non-banks involved in the "technology and goods channels" supplying the Russian military, according to Reuters.

These measures aim to further restrict Russia's ability to sustain its military operations.