U.S. exports to Russia plunge by 90% under sanctions

U.S. exports to Russia plunge by 90% under sanctions

WASHINGTON Reuters - Global exports of semiconductors to Russia have plummeted by 90% since the United States and allies imposed export controls on Moscow over its invasion of Ukraine, U.S. Commerce Secretary Gina Raimondo said on Wednesday.

Raimondo said at an annual Commerce Department conference that controls on Russia's aerospace sector were hammering its ability to generate revenue and support military aviation.

Russia could have to ground between half and two-thirds of its commercial aircraft in the next four years in order to cannibalize them for spare parts, she added.

The remarks came a day after U.S. President Joe Biden's administration added five companies in China to a trade blacklist for allegedly supporting Russia's military and defense industrial base, flexing its muscle to enforce sanctions against Moscow.

The United States has collaborated with allies to punish Russian President Vladimir Putin for the invasion, which Moscow calls a special operation by sanctioning a raft of Russian companies and oligarchs and adding others to a trade blacklist.

Washington has vowed to monitor compliance and enforce the restrictions while U.S. officials previously said that China was generally complying with the restrictions.

On Wednesday, Raimondo doubled down on threats to shut down China's top chipmaker SMIC if it is found to be supplying chips to Russia.

What if SMIC or other Chinese-based semiconductor companies supply chips to Russia? She said something. We will shut them down, because almost every chip in the world and China is made with U.S. equipment and software and I intend to make good on that commitment if it's necessary.