On Monday, the Biden administration in the United States implemented fresh trade restrictions on 11 Chinese and five Russian companies, alleging that some of them supplied components for the production of drones used by Russia in the conflict in Ukraine.
The Commerce Department, responsible for export policy oversight, included a total of 28 firms, including several Finnish and German companies, on a trade blacklist. This move makes it more challenging for U.S. suppliers to provide them with technology.
Nine of the companies, including China’s Asia Pacific Links Ltd. and Russia’s SMT-iLogic, were allegedly involved in a scheme to provide drone parts to Russia’s Main Intelligence Directorate of the General Staff (GRU) through the previously blacklisted Special Technology Center.
An investigation conducted by Reuters, iStories (a Russian media outlet), and the Royal United Services Institute (a defense think tank in London) last year unveiled a global logistical trail that led to the Orlan drone’s production line at the Special Technology Centre in St. Petersburg, Russia.
The investigation revealed that Asia Pacific Links Ltd., an exporter based in Hong Kong, was one of the primary suppliers to Russia’s drone program. Both Asia Pacific Links Ltd. and the import company SMT iLogic had previously been targeted by U.S. sanctions in May.
None of the companies immediately responded to requests for comment.
Alan Estevez, the Commerce Department’s export controls chief, stated, “We will not hesitate to take swift and meaningful action against those who continue seeking to supply and support Putin’s illegal and immoral war in Ukraine.”
Additionally, six Chinese entities were added to the list for allegedly procuring aerospace parts for Iran Aircraft Manufacturing Company, which are used in the production of drones deployed by Iran in attacks on oil tankers in the Middle East and by Russia in Ukraine.
The Special Technology Center in St. Petersburg, Russia, originally under U.S. sanctions following allegations of working with Russian military intelligence to influence the 2016 U.S. presidential election, now focuses on manufacturing military drones, primarily for Russia.
The United States has aggressively employed a trade blacklist known as the entity list to target China’s tech sector and hinder Russia’s actions in Ukraine.
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