By Karen Freifeld

(Reuters] – The U.S. export restrictions to Russia to stop invading Ukraine appear tough on the surface, however exemptions on every part of mobile phones and plane parts along with difficulties in policing shipments indicate a softer economic blow.

Russia is likely to suffer from the restrictions that have been imposed by Canada, Japan and New Zealand on Thursday as well as similar ones being implemented by Canada, Japan and New Zealand over the next few years.

However, the U.S. new rule of 86 pages is weakened by numerous exceptions.

Doug Jacobson, a Washington trade lawyer said that this was not an embargo.

He noted that there are many carveouts. These include cellphones for Russian civilians and certain equipment from the oil fields.

Peter Harrell of the White House National Security Council stated that the United States will not penalize the average Russian but instead would degrade Russia’s key industries, and increase its military expenditures. Both the item and the person who uses the technology are the criteria for the restrictions.

Joe Biden, the U.S. president, announced Thursday’s curbs. He stated that, “between our actions, and those of our allies, and partner, we estimate we will reduce more than half Russia’s high tech imports.”

It is dependent on multilateral cooperation, and an expansion of so-called Foreign Direct Product Rule. The rule forces companies making tech items in foreign countries to obtain licenses from the United States prior to shipping to Russia.

But, the U.S. does not apply to certain countries which have plans to implement similar measures to their partners.

According to Commerce Department statistics in 2020, U.S. exports were below $5 billion to Russia. However, a Commerce Department official stated that Russia has more than 50 billion dollars in important inputs.

Exports of household goods, including humanitarian items and electronics are allowed under the new measures. As long as the devices aren’t sent to military personnel, certain government employees, or affiliates, they can be exported as consumer communications devices like laptops and cellphones.

The senior Commerce Department official stated that blocking all access to technology for consumers would hinder the opposition of Putin’s regime. Independent media would be also affected.

William Reinsch, an ex-official at the Commerce Department, stated that “you can make a strong argument that it would have been better to do a more broad blanket thing and that that doesn’t hurt average Russians, then that’s okay.”

Reinsch stated that the rule’s complexity is a double-edged blade. Businesses will find it more challenging to adhere to the rules the more complicated they are.

He said that few companies are dependent on Russia and that some exporters could just stop Russia, as it’s too complex.

It’s easier for companies to state that they won’t be involved in the sale. All sales must stop

According to one chipmaker, it has stopped any supplies going to Russia and is determining which exports are in breach of these rules.

Enforcement can be difficult. It may be difficult to trace a U.S.-made semiconductor in one country, if the same device is sent later to Russia through an intermediary. Cordell Hull, another ex-Commerce official, stated that this could make it more challenging to enforce.

The U.S. government should use every resource available to them to comply with this rule.

Senior officials said that the Commerce Department intends to employ its overseas special agents as well foreign export control officers and other investigative tools to locate violators.

A lot depends on foreign manufacturers’ cooperation and experience, as well as physical inspections by U.S. enforcement agencies.