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White House prepares to curb Russia’s access to US technology

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White House prepares to curb Russia’s access to US technology

Kevin Wolf, partner in international trade at Akin Gump, who worked in export controls under the Obama administration, said the White House could prepare the use of export controls to target certain strategic sectors, for example in the aerospace or maritime industries. companies, while products used by the Russian population such as bypass washing machines.

“They are making it clear that they are not trying to take action that harms ordinary Russians,” Mr Wolf said.

Andy Schauer, co-head of global arbitration, trade and advocacy for Siddeley Austin, said the ban is likely to focus on semiconductors and semiconductor devices. He added that there are novel export controls that the United States has gained a powerful reach against Huawei when it comes to semiconductors, because even chips made overseas are mostly manufactured and tested using machinery based on American designs. are, he said.

“It’s not just what is physically exported from the US,” Mr Schauer said. “That could involve a substantial amount of production, because so much of the semiconductor industry depends on American technology.”

The global semiconductor industry, which has been hit by shortages and supply chain disruptions during the pandemic, could face further disruptions given Ukraine’s role in the semiconductor supply chain.

Stacey Rasgon, a senior analyst at Bernstein Research, said Ukraine was an important location for the purification of neon, a gas used in the production of semiconductors. While neon costs were a small fraction of what semiconductor companies were paying, “potentially risking a significant fraction of purification efficiencies seems somewhat ominous for an industry already struggling with shortages,” he said.

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A spokesman for the Semiconductor Industry Association said the group is still evaluating potential impacts related to Russia and Ukraine’s roles as materials suppliers. But he added that Russia is not a significant direct consumer of semiconductors, accounting for less than 0.1 percent of global chip purchases, according to the World Semiconductor Trade Statistics Organization.

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