Ukraine – Commerce Puts Restrictions on Exports to Russia

It will take global automakers time to sort out this latest disruption in the supply chain.

The U.S. Commerce Department today, through its Bureau of Industry and Security (BIS), responded to Russia’s further invasion of Ukraine by implementing a “sweeping series of stringent export controls that will severely restrict Russia’s access to technologies and other items that it needs to sustain its aggressive military capabilities.” Thus far major automakers with operations and interests in Russia have been silent.

The export control measures are the most comprehensive application of Commerce’s export authorities on U.S. items, including technology, as well as on foreign items produced using U.S. equipment, software, and blueprints, targeting a single nation. These were implemented with the cooperation of the United States, the European Union (EU), Japan, Australia, United Kingdom, Canada, and New Zealand. More nations are expected to align their export control policies and requirements with todays actions. “If necessary, based upon any subsequent destabilizing actions by Russia, the U.S. government will follow up in the days to come with additional stringent economic measures,” Commerce said.

Commerce said the export controls primarily target Russia’s defense, aerospace, and maritime sectors. These “will cut off Russia’s access to vital technological inputs, atrophy key sectors of its industrial base, and undercut its strategic ambitions to exert influence on the world stage.”

“Russia’s actions are an immediate danger to those living in Ukraine, but also pose a real threat to democracy throughout the world,” said Secretary of Commerce Gina M. Raimondo. “By acting decisively and in close coordination with our allies and partners, we are sending a clear message today that the United States of America will not tolerate Russia’s aggression against a democratically-elected government. The Commerce Department, along with our partners internationally and across the Biden-Harris Administration, will continue to use every tool at our disposal to restrict products, software, and technology that support Russia’s military capabilities.”