What U.S. sanctions mean for Russian defense industry?

What U.S. sanctions mean for Russian defense industry?

The United States Department of Commerce has published a list of 103 Russian and Chinese companies and enterprises, which Washington suspects of cooperating with the two countries’ military.

The entities on this list will not be able to purchase a number of U.S. goods and technologies.

A total of 58 Chinese and 45 Russian entities (actually 41 as some structures are repeated) have been put on this list. Among them are the Admiralty Shipyard (part of JSC United Shipbuilding Corporation), the United Aircraft Corporation, the Federal State Budgetary Enterprise Special Flight Unit Rossiya of the Administration of the President of Russia, the Irkut Corporation, Oboronprom, Rostec, Russian Helicopters, Sukhoi Civil Aircraft, Tupolev JSC, JSC Rocket and Space Center - Progress and institutes of the Rosatom State Nuclear Energy Corporation.

The U.S. government has labeled these companies as ‘military end users.’ However, it’s unclear if all those entities on the list could be called so. For example, the Kamensk-Uralsky Metallurgical Works J.S. Co., which supplies goods to the U.S. and Canada, as well as the Federal State Budgetary Enterprise Special Flight Unit Rossiya of the Administration of the President of Russia.

"The U.S. Government has determined that these companies are ‘military end users’ for purposes of the ‘military end user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to the China, Russia, and Venezuela when such items are destined for a prohibited ‘military end user,’" the statement said.

The initial list includes 103 companies, while additional parties may be added or deleted from it pursuant to a determination made by the End-User Review Committee, the interagency body composed of Commerce, and the Departments of Defense, Energy, State, and the Treasury.

At least some Russian companies and entities on the new blacklist had already been targeted by various U.S. sanctions and restrictions, including a ban on importing certain US goods.

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