US urges Asian countries to continuously restrict Russian trade

The US urges Asian countries to keep on restricting Russian trades in wake of the latter’s invasion of Ukraine, Matthew S. Borman, Deputy Assistant Secretary for Export Administration in the U.S Department of Commerce, said in a media briefing attended by various media personalities worldwide on Tuesday, March 29, 2022.

The deputy assistant secretary urges Asian countries to condemn Russia’s Ukraine invasion as the actions are considered a breach of international law. He’s also calling the Asian union to align “trade restrictions or transactions” with the neighboring countries who are also in favor on the U.S sanctions and to also show disapproval on Russia’s blatant violence.

Borman discussed about Russia’s actions that pose “immediate danger and real threat to the democracy throughout the world” and said that the United States of America and other unions will not tolerate Russia’s progressive threat to a democratically elected government.

“The Biden administration has worked to rally our allies to impose sweeping economic sanctions that restrict Russia’s ability to obtain items it needs to wage war,” he further declared.

“Cooperation from allies and partners is a significant force multiplier for the effectiveness of our controls,” said Borman. He also said that prior to the Russia-Ukraine war, some senior officials at the U.S Department of Commerce and other Department of State agencies have already engaged in “more than 50 working-level discussions with partner nations” aiming to also urge other countries to help them give sanctions to the opposing country.

Borman explains that the major work that the U.S is doing now is to cut off all Russia’s ability to access “chips” or any manufacturing tools made with U.S software that the Russians direly needs for making their military equipment. As of the moment, the U.S have already restricted any Russian trades going in and out of their vicinity.

U.S. DOC on measuring success of sanctions for Russia

About a month after the first declaration of Russia’s invasion of Ukraine, the U.S was quick to impose bans and restrictions against them that were seen to be effective by the U.S DOC on the “exportation and financial effects” of the sanctions.

On a question about how the U.S manages to measure the “success” of reprimanding Russia, Broman expressed seeing significant impacts on acting against the invasion.

“The financial sanctions of course had a very immediate impact and that’s demonstrated by any number of indices in the Russian economic realm.  But on export controls, we’ve already seen substantial press reporting on impact,” Broman said.

“For example, Russian manufacturing facilities – including those that are involved in manufacturing military vehicles – have had to shut down production because they are not able to get the components, particularly semiconductors, that they need for their products,” he added.

Broman firmly believes that as long as Russia continues to fuel the fire on Ukraine, the U.S and its other allies will continue to give out sanctions that will likely become a big damage to Russia’s economy.

“As long as Russia continues its war in Ukraine, I think there is very strong will among the allies, certainly, to continue the sanctions, look at additional sanctions that might be appropriate, and strong collaboration on ensuring that they’re robustly implemented,” said Broman, also stating that the U.S will also continue to talk to other countries in aligning sanctions.

 

U.S export controls and possible compliance issues of allied countries

Knowing Russia to be dependent on foreign supplies either from daily necessities to military equipment, because of the ongoing Russia-Ukraine war, this has led the U.S to enforce exportation controls, recalling that they have already nudged about 300 company allies to participate in the said sanctions, several of it being the Asian countries.

Upon being asked about their methods and resources in monitoring their allies’ compliance to the mandates, the deputy assistant secretary said that they have come to call some Asian firms to partner for the alignment of plans and checking of compliances.

“We are doing significant industry outreach in the region. We’ve just finished a call that was organized by the American Chamber of Commerces in Singapore and Malaysia that had, I think, close to 900 participants.  We’ve done an event with industry in China, we’ve done one with industry in Korea,” he said also saying that it is just one of the “outreaches,” that they plan to do.

“We have export control attachés stationed in a number of countries in the region who can do both onsite inspections, as well as coordinate with their host governments,” he added.

“Certainly, we have authority to take action that could have (a) significant impact on parties that may not be complying with the restrictions,” said Broman, also added that if these Asian countries and others will not comply with the said restrictions, as they are bringing U.S input in their alliance, the U.S will also take an action by cutting of their alliance with them.

DAS Broman ended the briefing with a reminder to the Asian countries to exercise diligence in posing restrictions on any interaction or transaction with Russia, as a compliance to the instructions of the United States of America, being one of the Philippines’ allies.

“Particularly in Asia, since this is the focus of this discussion, to make sure that they do their due diligence so that any transactions that they are contemplating undertaking with Russia are consistent and compliant with our requirements,” said Broman.

“The United States is grateful for the partnerships we have with the governments and companies in the Asia Pacific region, and we hope to continue to grow our coalition. Working in collaboration with allies helps to ensure an even playing field for all, while also enhancing the effectiveness of restrictions on trade with Russia,” he adds.

“We’re always willing to work with any government in Asia to explain in more detail our actions and help them understand them so that they can also explain it to their industry and consider taking comparable action to align their strategic trade policy with those of us and our allies,” said the U.S deputy assistant secretary for Department of Commerce.

To recall, President Rodrigo Duterte said on March 17 that the Philippines will maintain a “neutral stance” on the Russia-Ukraine invasion.

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