The list added industrial and construction equipment, goods from the steel industry, chemical industries, automotive industry, including the cars themselves, parts for cars over $50,000, drivers and computers. quantum coins, their parts, as well as sapphires and rubies. South Korea explained that applications for all these positions will be considered separately in each case and, exceptionally, companies that meet all the requirements will be granted an export permit. At the same time, the South Korean Ministry of Commerce explained this step with “a high probability that these goods will be used by importing countries for the production of weapons and for military purposes”.
“As you can see, we are not talking about a complete export ban, but only about expanding export restrictions,” says Alexander Knobel, director of the Institute of International Economics and Finance at the All-Russian Academy of Foreign Trade, candidate of Economics. South Korea’s Ministry of Commerce thus subjects the export of dual-use goods to general restrictions, explains the expert.
There is a high probability that the goods included in the list will be used for the Russian defense industry, the expert explains.
In practice, everything will result in the complication of supply mechanisms and the increase in the cost of these basic products, since it will be necessary to organize deliveries through certain intermediary companies or to overpay for mediation. But ultimately most of these goods can be delivered to Russia, concludes Knobel.
Nevertheless, Russia must be prepared for the fact that certain positions will still be affected by the ban. Especially in terms of high-tech production. However, here, as in other situations, China will become the main replacement resource, the expert is sure. For example, according to him, when it comes to cars, replacement by the Chinese auto industry seems to be the most obvious solution.
Recall that in Russia, the South Korean automaker Hyundai still has a car assembly plant that assembled Hyundai Solaris, Hyundai Creta, Kia Rio and Kia Rio X, and an engine production plant located in St. Petersburg. Now both factories are idle. In February of this year, information appeared that the car assembly complex could be sold to an owner from Kazakhstan.
However, the Korean sanctions, compared to those of the United States or Japan, which supply us with similar goods, seem to be the least severe so far. Previously, South Korea had even obtained the exclusion of its companies from the list of American sanctions. They cannot apply for a license from US authorities when exporting technology products to the Russian Federation. An exception has been made for household appliances, smartphones and cars, provided they are not exported to end consumers for military purposes.
“Russia’s dependence on Korean imports today is quite moderate – no more so than on other countries that have imposed and are imposing sanctions. By imposing new restrictions, South Korea Sud only makes a small contribution to the overall picture of the need for redirection and systemic restrictions. Well, the logistics are going to get a bit more complicated on import, well, the deliveries are a bit more expensive … “- concluded the interlocutor of” RG “.
Russia must be prepared for the fact that certain positions will still be affected by the ban. However, here again, China will become the main replacement resource.
Recall that South Korea imposed sanctions against Russia in March last year. Seoul, in particular, suspended settlements with Russian banks and supported the disconnection of some of them from SWIFT. In addition, South Korea has banned the export to Russia of microprocessors and microcontrollers, semiconductor production, test and verification equipment, polycrystalline silicon (material for solar cells), filters, resistors, as well as software necessary for the development and production of transistors and electronic equipment.
In the meantime
A week at the White House
South Korean President Yoon Sok-yeol flew to the United States yesterday, where he will stay for almost an entire week as part of a state visit. According to Reuters, the South Korean leader has big plans. Thursday, he intends to address the US Congress, which South Korean leaders have not done for ten years. And the main “dish” of Yoon Sok-yeol’s visit will be negotiations with US President Joe Biden. The Washington Post informs that a gala dinner will be given in honor of the guest at the White House, because this year Washington and Seoul celebrate the 70th anniversary of their military-political union.
Biden and his South Korean counterpart have enough talking points. Traditionally, the challenge will be to counter North Korea, whose nuclear missile program worries Washington and Seoul. The American and South Korean press note that the parties intend to agree on significant progress in containing Pyongyang.
Another point of the upcoming talks is economic security and technological cooperation. According to the Financial Times, the White House does not want the South Koreans to sell their chips to China if it “cuts off the oxygen” of the American company Micron.
Biden and Yoon Seok Yeol will also likely address last month’s hot topic – the Pentagon data leak, which revealed the US was bugging high-ranking South Korean officials. But do not expect surprises here: Seoul has already put the brakes on the situation, declaring that the information is not plausible.
Perhaps the main intrigue of the South Korean’s visit is whether he will succumb to calls from Washington to supply artillery shells to Ukraine. The South Korean authorities provide humanitarian aid to Kiev, but they have not transferred weapons and ammunition to the Ukrainian armed forces, explaining this in particular by their reluctance to spoil relations with Russia. But recently, in an interview with Reuters, the South Korean leader has already authorized the shipment of ammunition to the Kiev regime, although later in Seoul they repeated his words.
Prepared by Vladislav Shablovsky
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