Kevin Wolf, an international trade partner at Akin Gump who worked in export controls under the Obama administration, said the White House could tailor the use of export controls to certain strategic sectors, such as companies in the aerospace industry, while limiting the use of export controls. products used by the Russian population, such as washing machines.
“They make it clear that they are not trying to take any action that harms ordinary Russians,” said Mr Wolf.
Andy Shoyer, co-lead of global arbitration, trade and advocacy for Sidley Austin, said the restrictions would likely focus on semiconductors and semiconductor devices. The new export controls imposed by the United States against Huawei have powerful reach when it comes to semiconductors, as even chips made abroad are usually manufactured and tested with machines based on American designs, he said.
“It’s not just about what is physically exported from the US,” said Mr. Shoyer. “It could involve a significant amount of manufacturing, as much of the semiconductor industry relies on U.S. technology.”
The global semiconductor industry, which has suffered from shortages and supply chain disruptions during the pandemic, could face more disruptions given Ukraine’s role in the semiconductor supply chain.
The effect of the crisis in Ukraine on the global economy
An increasing concern. A Russian attack on Ukraine could cause dizzying spikes in energy and food prices and deter investors. The economic damage from supply disruptions and economic sanctions would be severe in some countries and industries and undetected in others.
Stacy Rasgon, senior analyst at Bernstein Research, said Ukraine is an important site for the purification of neon, a gas used in semiconductor production. While neon costs were only a fraction of what semiconductor companies are paying, “the potential of jeopardizing a significant amount of purification capacity sounds somewhat ominous to an industry already struggling with shortages,” he said.
A spokesperson for the Semiconductor Industry Association said the group was still evaluating the potential impacts associated with Russia and Ukraine’s roles as materials suppliers. But he said Russia was not a significant direct consumer of semiconductors, accounting for less than 0.1 percent of global chip purchases, according to the World Semiconductor Trade Statistics organization.
