Thanks, Deputy Secretary Adeyemo, for bringing us collectively at present. And thanks to all within the room who’ve joined the trouble.
When Russia launched its unconscionable warfare in opposition to the Ukrainian individuals, the Commerce Division needed to rewrite the playbook of financial statecraft.
America wanted to degrade Russia’s army functionality, and rapidly, with out boots on the bottom.
Export controls have been a major a part of the answer.
Export controls have been a instrument of nationwide safety and international coverage for generations, however the division deployed them with higher pace, precision, impression, and multilateral coordination than ever earlier than.
The importance of our actions is difficult to magnify.
Nearly eight months into what was anticipated to be a fast strike marketing campaign, Russia’s capability to resupply is deeply in query.
What did Commerce do, and the way did we do it?
We began by working arduous to recalibrate, revitalize, and reinforce our worldwide partnerships to supply a unified worldwide response.
In document time, we labored with lots of you right here to construct a coalition of 38 like-minded companions from North America to Europe and the Indo-Pacific, all of whom agree that Russia’s actions characterize a world safety menace that can’t go unanswered.
Working with our allies and companions, we targeted on including new export controls on objects that may have the best impression on Russia’s army and protection industrial base.
This included restrictions on objects managed by the 4 multilateral export management regimes, less-sensitive dual-use objects with army functions, and objects that would help Russia’s manufacturing and manufacturing capabilities.
Additionally, to make sure that U.S. expertise, software program, and instruments weren’t used to provide non-U.S. objects that would assist Russia’s army capabilities, we prolonged our international direct product rule to impose restrictions on lots of these non-U.S. objects for Russia, Belarus, and army finish customers in these international locations.
Along with focusing on sure forms of objects and applied sciences, we additionally focused particular Russian and Belarusian army finish customers by including them to our Entity Checklist.
Because of our efforts, together with these of our allies and companions, we’ve got seen vital impacts based mostly on public reporting.
For the reason that imposition of our controls, Russia’s semiconductor imports, the lifeblood of Russia’s weaponry, have dropped by practically 70 p.c in comparison with the identical time interval final 12 months.
Russian hypersonic ballistic missile manufacturing has practically ceased because of the lack of vital semiconductors used within the manufacturing course of.
The manufacturing of automobiles fell by three-quarters in comparison with final 12 months, indicating that important superior microchips for civilian autos are being redirected for army use.
The Russian army is taking chips from dishwashers and fridges to repair their army {hardware}, as a result of they’ve run out of semiconductors. Russia’s business is on life-support.
Russia’s army aviation program now not advantages from the income and resupply supplied by aviation commerce. Russian media studies that manufacturing of its next-generation airborne early warning and management plane has stalled on account of lack of international elements, together with semiconductors.
Mechanical vegetation, together with these producing surface-to-air missiles have been shut down.
Russia has begun utilizing Soviet-era protection shares as its personal corporations are focused by our controls.
Lastly, Russia has needed to strategy North Korea for artillery shells and rockets.
We’ll proceed to work with all of you to investigate the effectiveness of our controls and proceed to take motion to additional our assist for the individuals of Ukraine.
Thanks, once more, for the chance to take part at present. I’m wanting ahead to our dialogue.
