Jeffrey Dastin and Paresh David

(Reuters) – The United States has rescinded Thursday’s export ban to Russia for a wide range of U.S. products and foreign goods made with U.S. technologies. This was in response to the invasion of Ukraine.

Six experts in U.S. trade laws have provided a guideline on how these rules will affect U.S. technology companies.

Is there any technology that is now restricted for export to Russia

U.S. companies now need licenses in order to sell sensors, lasers and navigation tools as well as telecommunications and maritime equipment. Nearly all requests will be denied by the United States.

“We expected something sweeping, and this was certainly sweeping,” said Ama Adams, partner at law firm Ropes & Gray.

Companies that export U.S.-made tech products to Russia must also comply with the new regulations.

To great effect, a similar restriction was applied to Chinese tech giant Huawei in recent years.

How will the U.S. affect these companies?

Legal experts say that many companies could suspend sales to Russia from a sense of precaution.

According to U.S. Census data, Russia’s exports were only $6.4 billion in 2013. Machinery and vehicles are the most important categories.

Russia may be most affected by curbs placed on imported goods.

The Semiconductor Industry Association, which represents U.S.-based chipmakers, stated that Russia is “not a major direct consumer” of semiconductors and that Russia’s tech and communications spending was “only about $25 billion” out of the global multi-trillion market. 

Many products that are made in Asia, and shipped to Russia with U.S. toolsing, contain chips. To limit Russia’s export options, more than two dozen European Union members, including the United Kingdom and Canada have imposed similar restrictions.

What will Russia do?

Emily Kilcrease is a senior fellow with the Center for a New American Security. She was previously deputy assistant U.S. trade Representative.

“You won’t be able to get new tech into the country,” she said.

William Reinsch (a Center for Strategic and International Studies trade specialist and former Commerce Department export officer) expects that there will be a gradual increase in the impact.

“Eventually, they will hurt. But maybe not for several months,” he stated. “It’s not an immediate body blow.”

Although the sanctions and curbs aren’t as extensive as U.S. actions against Iran and North Korea trade, they can have greater global consequences because Russia is closer to the world economy.

Which technology are not subject to new limitations?

These measures also include exemptions for household items, such as electronics and humanitarian products, or technology that is essential for flight safety. So long as cell phones aren’t being sent to Russian government employees, or other affiliates, it is allowed.

The use of consumer encryption technology, also available for free, is not being restricted. One attorney said that it was a signal that the United States does not intend to disturb protesters or media.

The U.S. can extend sanctions on additional items at any time.

Kilcrease stated that South Korea wasn’t listed as a partner in the rules and would help to block Russia from accessing its chips there.

According to a senior U.S. official, more countries are expected to sign up.

Washington, South Korean Embassy did not respond immediately to our request for comment.

South Korea announced Thursday that it will join unspecified multilateral economic sanctions against Russia as a response to the military operation in Ukraine. However, they are not contemplating adopting unilateral measures.

What companies might benefit from these new rules?

Kilcrease and other legal professionals believe that Chinese tech companies might want to fill the voids left by Western restrictions, even though Kilcrease stated that they would be discouraged by U.S. regulations. The top U.S. government official however stated that China can’t supply Russian critical military needs, particularly for its most advanced chips.