U.S., Allies Cut Bulk of Russia High-Tech Imports, Raimondo Says

(Bloomberg) -- Actions by the U.S. and its allies to restrict Russia’s access to high-tech imports and parts has seen those shipments fall by more than 50%, frustrating the nation’s manufacturing and servicing efforts, Commerce Secretary Gina Raimondo said. 

“The Russian military is struggling to find spare parts for their tanks, for their satellites, for their rocket-mounting systems,” Raimondo told reporters in Washington Thursday. “We have denied them almost all semiconductors, night-vision goggles, avionics. We’re hearing reports of an auto manufacturing facility shutting down,” for planes being unable to fly because they don’t have spare parts.  

Commerce spent months prior to Russia’s invasion in late February coordinating potential export controls with global allies to make sure that Moscow wouldn’t simply substitute technology exports from another nation for those that were blocked by the U.S. The rules are being used to deny Russia access to products used in the defense, aerospace, and maritime sectors.

The department’s efforts have resulted in 37 nations including Japan, Australia as well as the European Union’s member countries joining the U.S. in imposing expansive controls on what they export to Russia. 

Since Feb. 24, when Commerce’s Bureau of Industry and Security first new rule came into effect, total U.S. exports to Russia have plunged almost 90% compared with the 30 days prior, the BIS said Thursday. 

Earlier, the BIS issued an order temporarily denying all export privileges for the Russian cargo aircraft carrier Aviastar. On April 7, it suspended Aeroflot PJSC, Russia’s biggest airline, and two others from receiving U.S. parts and services for their planes, a step that officials expect over time will limit their ability to fly.

Semiconductor companies Intel Corp. and Advanced Micro Devices Inc. have halted all sales to Russia, the BIS said. Microsoft Corp. announced that it would suspend sales and support services in Russia to maintain compliance with U.S. and international sanctions. 

Vehicle manufacturers including Toyota Motor Corp., Ford Motor Co., and BMW AG have also halted or suspended exports to Russia.

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