U.S. Government Urges Companies to Halt Shipments to Foreign Parties in Fear of Diversion to Russia

American companies are being urged by the U.S. government to cease shipping goods to more than 600 foreign parties out of concern that the items may be diverted to Russia for use in its invasion of Ukraine, as per a U.S. official. Letters have been sent by the Commerce Department to at least 20 companies in recent weeks with this warning, marking the latest attempt to hinder Russia’s war effort in Ukraine. These companies manufacture and sell products that have been discovered in missiles and drones recovered in Ukraine since Moscow invaded in 2022.

Following the invasion, the U.S. and over 30 other countries have implemented sanctions targeted at impeding Russia’s ability to carry out its war by restricting access to Western technology. However, American components are still being found in Russian weapons left behind on the Ukrainian battlefield. Assistant Secretary Matthew Axelrod shared at the department’s annual export control conference in Washington, D.C., that letters have been sent to more than 20 American companies in recent weeks, each containing a list of over 600 foreign parties. The letters request that the American companies voluntarily halt shipments to these parties due to the significant risk of transshipment to Russia.

In addition, Axelrod mentioned that senior officials from the Commerce, State, and Treasury departments have been communicating directly with senior leaders in U.S. companies to explore further actions they can take to prevent their products from being used in Russia. The efforts to prevent the diversion of goods to Russia for use in the conflict continue to be a top priority for the U.S. government in an attempt to support Ukraine and mitigate Russia’s aggression.

The Commerce Department has taken steps aimed at preventing Russian agents from purchasing American products and technologies through third-party intermediaries or front companies located outside of Russia or its allies.

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