KUALA LUMPUR: There is no indications of non-compliance by companies in Asia with regard to export controls on Russia in view of its aggression in Ukraine, with some companies even self-sanctioning, says a senior United States (US) official.
US Commerce Department Deputy Assistant Secretary for Export Administration, Matthew Borman, believed the major players knew there is a significant risk to their businesses if they didn’t comply due to the actions the United States could take, including fines or criminal penalties.
“The restrictions have been in place for roughly a month, a little bit over a month, and we certainly haven’t seen any indication that there’s noncompliance. In fact, we’ve seen the reverse.
“We know that Russia is quite dependent upon foreign supplies for some key inputs like semiconductors, so I think it will be relatively readily apparent if there is noncompliance, and then the task will be to sort of trace that back to its origin,” he said during a telephonic press briefing on US Department of Commerce recent export controls against Russia, including how these actions might impact business operations in the region.
Countries in Asia like Japan, South Korea, Singapore and Taiwan have joined in the Western-led sanctions effort, including significant financial sanctions on a range of Russian financial institutions and individuals.
On his call to Asian countries concerning the Russia-Ukraine war, Borman said he hoped that Asian countries will align their trade restrictions or their transactions with Russia with those of the allies, including those in Asia that have already done so, to really demonstrate their disapproval of the Russian action as well as make their restrictions even more effective.
“So that’s what we are interested in from other countries in Asia – and around the world, for that matter,” he added.
In his closing remarks, Borman hoped that Asian companies will do their due diligence so that any transactions they contemplate to undertake with Russia would be consistent and compliant with US requirements.
“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 help also explain it to their industry and consider taking comparable action to align their strategic trade policy with those of us and our allies,” he added.-Bernama
