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White House admits too many US goods find their way to Russia

White House admits too many US goods find their way to Russia Illustrative photo (Getty Images)
Author: Maria Kholina

A concerning amount of Russian weaponry is equipped with electronic components from the US and allied countries. Companies must halt the flow of parts used in the war against Ukraine, according to Deputy National Security Adviser for International Economics at the White House, Daleep Singh.

"The percentage of Russian battlefield weaponry with US or allied branded components is alarmingly and unacceptably high," Singh said.

He urged companies to leverage their creativity and resources. "Know your customers, know their customers, and know the end users. Ensure that American firms are not unwitting cogs in Russia’s arsenal of autocracy," he said.

The US and its allies have been struggling to stop the flow of parts to Russia. Export controls, which target the movement of goods rather than financial transactions, are challenging to enforce because manufacturers lack the large internal compliance departments that banks have developed over the last two decades of US sanctions policy.

"It took decades to build the financial sanctions architecture after 9/11," Singh said, responding to questions at a Brookings Institution event. "We’ve got to do that at warp speed for technology and goods companies."

Singh, who played a key role in implementing the first round of economic measures against Russia in the early days of the 2022 invasion, said his comments were "an urgent call for corporate responsibility." Singh returned to the White House in February after serving as chief economist at PGIM Fixed Income.

As previously reported by RBC-Ukraine, foreign components have been found in Russian missiles flying into Ukraine, with 70% of the parts coming from American companies.