U.S. Department of State Weekly Digest Bulletin

 

Imposing Sanctions on Russia’s Technology Procurement 10/19/2022 Imposing Sanctions on Russia’s Technology Procurement 10/19/2022 05:22 PM EDT Antony J. Blinken, Secretary of State In coordination with the U.S. Department of Justice and the Federal Bureau of Investigation, the Department of the Treasury designated Russian procurement agent Yury Yuryevich Orekhov (Orekhov) and his companies Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH) and Opus Energy Trading LLC (Opus Energy Trading) pursuant to Executive Order 14024. Orekhov, via NDA GmbH, is responsible for procuring U.S.-origin technologies for Russian end-users, including entities on the U.S. Department of Commerce Bureau of Industry and Security’s Entity List, in violation of U.S. export controls.  These technologies include advanced semiconductors and microprocessors used in fighter aircraft, ballistic and hypersonic missile systems, smart munitions, radar, satellites, and other military applications, components of which have been found in Russian weapons platforms in Ukraine.  As such, Orekhov and his companies have directly contributed to the Kremlin’s unjustified war of aggression against Ukraine. This is also a reminder of how the Russian military is suffering from major supply shortages in Ukraine, in part because of our sanctions and export controls. The United States, along with our allies and partners, will continue to hold Russia accountable and vigorously enforce our sanctions and export controls to deprive Russia’s war effort. Today’s action builds on last week’s meeting of top officials, representing ministries of finance and other government agencies from 33 countries to discuss the effects of international sanctions and export controls on Russia’s military-industrial complex and critical defense supply chains. The Departments of the Treasury, Commerce, and State released an alert on Friday detailing the impact of international sanctions and export controls. Read the joint alert . For more information on today’s action, please see the Department of the Treasury’s press release.  More information on the actions being taken by the Department of Justice and Federal Bureau of Investigation can be found in the Department of Justice press release. On Russia’s Acquisition of UAVs from Iran 10/19/2022 On Russia’s Acquisition of UAVs from Iran 10/19/2022 09:08 PM EDT Ned Price, Department Spokesperson Today, the United States joined the United Kingdom and France in raising the issue of Iran’s transfer of UAVs to Russia at a meeting of the UN Security Council, where Council members received expert briefings from the UN Secretariat on reports of the transfer of these dangerous weapons. We expressed our grave concerns about Russia’s acquisition of these UAVs from Iran in violation of UN Security Council resolution 2231. The United States began warning in July that Iran was planning to transfer UAVs to Russia for use in Russia’s brutal war against Ukraine, and we now have abundant evidence that these UAVs are being used to strike Ukrainian civilians and critical civilian infrastructure. As Iran continues to lie and deny providing weapons to Russia for use in Ukraine, we are committed to working with allies and partners to prevent the transfer of dangerous weaponry to Russia. We will not hesitate to use our sanctions and other appropriate tools on all involved in these transfers. We will also continue to surge unprecedented security assistance to Ukraine, including air defense capabilities, so that Ukraine can defend itself from these weapons. Deputy Secretary Sherman’s Call with French Foreign Ministry Secretary General Descôtes 10/20/2022 Deputy Secretary Sherman’s Call with French Foreign Ministry Secretary General Descôtes 10/20/2022 04:13 PM EDT Office of the Spokesperson The below is attributable to Spokesperson Ned Price: Deputy Secretary of State Wendy Sherman spoke today with French Foreign Ministry Secretary General Anne-Marie Descôtes.  They discussed our ongoing joint efforts to support Ukraine and hold Russia accountable for its unprovoked and unjustified war.  The two also addressed efforts to promote peace and stability across the Taiwan Strait.  Deputy Secretary Sherman and Secretary General Descôtes spoke about the latest developments toward promoting security in Haiti and Ethiopia.  They also discussed the Iranian government’s ongoing violent crackdown against peaceful protesters. The Impact of Sanctions and Export Controls on the Russian Federation 10/20/2022 The Impact of Sanctions and Export Controls on the Russian Federation 10/20/2022 04:24 PM EDT Office of the Spokesperson Since Russia launched its unjustified and unprovoked all-out war against Ukraine in February 2022, the United States has worked with Allies and partners around the world to impose an unprecedented range of sanctions and export controls on Russia for its brutal aggression. Moreover, we will continue to impose costs on the Kremlin for as long as its war of aggression continues. Sanctions and export controls are having significant and long-lasting consequences on Russia’s defense industrial base. Since February 2022, the United States and our partners and Allies have coordinated to use export controls and sanctions to restrict Russia’s access to advanced technology , which has degraded  the Russian weapons industry’s ability to produce and stockpile weapons to replace those that have been destroyed in the war. A few effects include: Major supply shortages for Russian forces in Ukraine are forcing Russia to turn to less technologically advanced countries such as Iran  and North Korea for supplies and equipment. Russia is struggling to import semiconductors and other key components.  Export controls have forced Russia to cannibalize existing airline parts they can no longer access abroad. Russian hypersonic ballistic missile production has nearly ceased due to the lack of necessary semiconductors used in the manufacturing process. Russia’s military aviation program has been cut off from resupply provided by global aviation trade. Russian media reports that production of its next-generation airborne early warning and control military aircraft has stalled due to lack of foreign components, including semiconductors. Mechanical plants, including those producing surface-to-air missiles, have been shut down due to shortages of foreign-origin components. Russia has reverted to Soviet-era defense stocks because our measures have interrupted Russian companies’ abilities to replenish domestic supply chains. Exports on certain goods and services, including dollar-denominated banknotes, accounting, management consulting, quantum computing, and trust and corporate formation services to persons located in the Russian Federation are now prohibited. In addition, since February 2022, the U.S. government has: Denied all exports, reexports to, and transfers of items subject to the Export Administration Regulations for military end uses or end users in the Russian Federation and Belarus. Targeted Russian and Belarusian military end users through their addition to the Department of Commerce’s Entity List, which has effectively cut off these end users from nearly all items subject to the Export Administration Regulations. Denied exports to, reexports to, and transfer within Russia and Belarus of items needed for oil refining. Also imposed additional license requirements to further limit the Russian oil sector by restricting the export, reexport and transfer of additional items needed for oil refining. Targeted items useful for Russia’s chemical and biological weapons production capabilities and other advanced manufacturing by imposing export controls. Targeted luxury goods to impose costs on certain Russian oligarchs who support the Russian government by imposing license requirements and denying licenses for the export and reexport of luxury goods for all end users within Russia. Used new foreign direct product rules targeted at Russia to prevent exports of foreign-origin items produced with U.S. advanced technologies, tools, and software. This prevents these items being transferred to support Russia’s military capabilities. Formed a coalition of 37 countries that has amplified the impact of U.S. actions by applying substantially similar controls to those imposed by the United States. This robust global coalition reinforces U.S. efforts to isolate Russia from commodities, technologies, and software necessary for Putin’s war. Furthermore, sanctions (administered and enforced by the U.S. Department of Treasury) are having a significant impact on Russia’s ability to wage its unjust war against Ukraine.  Specifically, sanctions implemented by the United States along with Allies and partners and allies have immobilized about $300 billion worth of Russian Central Bank assets, limiting the central bank’s ability to aid the war effort and mitigate sanctions impacts.   Sanctioned Russian oligarchs and financial institutions have been forced to divest from long-held assets outside Russia.  Moreover, sanctions have prompted banks in several countries to curtail ties with the Russian financial sector.  Despite benefiting from high energy prices, the IMF still expects Russia’s economy will contract by over 3 percent this year.  Lost investment, export controls, and constraints on Russia’s real economy will create a drag on Russia’s growth prospects for years to come.  Significantly, U.S. sanctions and export controls have severed Russia’s access to key technologies and industrial inputs that erode its military capability.   Since February 2022, the United States has issued approximately 1,500 new and 750 amended sanctions listings, including: State Corporation Rostec, the cornerstone of Russia’s defense-industrial base that includes more than 800 entities within the Russian military-industrial complex, such as Sukhoi, MiG, and Kalashnikov Concern. Joint Stock Company Mikron, Russia’s largest manufacturer and exporter of microelectronics. Tactical Missiles Corporation JSC, a Russian state-owned enterprise that produces missiles used by the Russian Armed Forces in Ukraine. Individuals and entities located outside Russia who have sought to procure goods and technology for the Russian military-industrial complex and intelligence services Russia’s largest financial institutions and restricted dealings with banks representing 80 percent of Russian banking sector assets. Rosoboronexport, which is Russia’s sole state-controlled intermediary agency for exporting and importing the entire range of military, defense, and dual-use products, technologies, and services. Issued guidance emphasizing the sanctions and export control risk to individuals and entities inside and outside Russia that provide material support for Russia’s sham referenda and purported annexation of the Kherson, Zaporizhzhya, Donetsk, and Luhansk regions of Ukraine. For further information, visit www.state.gov. Secretary Blinken’s Call with Italian Foreign Minister Di Maio 10/20/2022 Secretary Blinken’s Call with Italian Foreign Minister Di Maio 10/20/2022 07:04 PM EDT Office of the Spokesperson he following is attributable to Spokesperson Ned Price: Secretary of State Antony J. Blinken spoke today with Italian Foreign Minister Luigi Di Maio to bid him farewell in advance of the seating of Italy’s new government.  The Secretary thanked Foreign Minister Di Maio for his principled leadership of Italy’s foreign policy through historic challenges, including the unprecedented global response to Russia’s war against Ukraine. Joint Statement of the United States of America and Switzerland on Cooperation in Quantum Information Science and Technology 10/21/2022 Joint Statement of the United States of America and Switzerland on Cooperation in Quantum Information Science and Technology 10/21/2022 10:22 AM EDT Office of the Spokesperson The text of the following statement was released by the Governments of the United States of America and Switzerland on the occasion of an October 19 meeting at the Embassy of Switzerland in Washington, D.C. Begin Text: Recognizing that science, technology, and innovation have enabled transformative capabilities across multiple sectors, from energy to health and communications to transportation, and that the foundation of this progress is the global research enterprise, and its constant creation of new knowledge, understanding, and insights; Appreciating that quantum information science and technology (QIST) revolutionizes both our understanding of fundamental phenomena as well as the development of powerful computers, secure and rapid communication, and sensors with unprecedented precision, accuracy, and modalities; Understanding that the emergence of such robust technologies depends on an intensive effort to expand theoretical and practical understandings of QIST and to develop new tools for characterization, validation, and verification purposes; and Acknowledging that international partnerships are key to combine the expertise, ingenuity, creativity and further insights from the innovation ecosystems of our countries to expand our fundamental understanding of QIST and thereby accelerate the realization of innovative technologies for the benefit of humanity, The Participants intend to harness the spirit of science, technology, and innovation to pursue cooperation and the mutual respect it confers, and to promote QIST including but not limited to research on quantum computing, quantum networking, and quantum sensing, which underpins the development of society and the economy.  The Participants intend to advance this agenda by: Embarking on good-faith cooperation that is underpinned by our shared principles including openness, transparency, honesty, equity, fair competition, freedom of inquiry, and democratic values, and further promoting protection and enforcement of intellectual property and of rigor and integrity in research. Committing to create inclusive scientific research communities and tackle cross-cutting issues of common interest such as equity, diversity, inclusion, and accessibility, so that every person is able to fully participate and have an equal opportunity to succeed. Utilizing bilateral science and technology cooperation mechanisms and multilateral cooperation frameworks, and pursuing new implementing pathways, as appropriate, to promote cooperative QIST research and development efforts. Promoting avenues to encourage a broad and inclusive quantum ecosystem and research environment, to facilitate multidisciplinary research, and the sharing of, on voluntary, mutually agreed terms, research methodologies, infrastructure and data in line with respective national laws. Enabling opportunities to build a trusted market and supply chain for QIST research and development, and supporting economic growth, by engaging stakeholders including industry consortia, research leaders, policy makers, and business security stakeholders to grow the future QIST marketplace based on shared engagement principles. Supporting the education and development of the next generation of scientists and engineers necessary to expand the field, which could include opportunities for personnel exchanges. Leveraging regular multilateral opportunities to discuss QIST matters of international importance and respective policy issues. Creating potential economic and social value for both countries through innovative collaborations, based on scientific excellence and mutual interests. Exploring other potential activities to be decided upon by participating countries. We confirm our mutual understanding that cooperation informed and enabled by this Statement is pursuant to the Agreement between the Government of the United States of America and the Swiss Federal Council for Scientific and Technological Cooperation signed in Washington on April 1, 2009, and that the terms of the S&T Agreement and related agreements govern this cooperation.  The Participants understand that initiatives under this Statement can be developed and carried out by the various autonomous bodies and institutions in the United States of America and Switzerland that aim at reaching the purpose of this Statement. The Participants intend to focus on cooperation in QIST as outlined here to advance their shared vision of a vibrant and trusted quantum ecosystem. End text. The Joint Statement leverages both countries’ strengths in QIST and QIST-enabling fields to pursue innovative research, grow the future marketplace, build a strong supply chain, and grow the future generation of skills and talent. Monica P. Medina, Assistant Secretary of State for the Bureau of Oceans and International Environmental and Scientific Affairs, signed the joint statement for the United States. Martina Hirayama, State Secretary for State Secretary for Education, Research and Innovation, signed the joint statement for Switzerland. For more information, please see the Quantum.gov press release.