US exempts South Korean smartphones from Russia export bans
- Reference: 1646290754
- News link: https://www.theregister.co.uk/2022/03/03/south_korea_tech_russia_export_ban_exemptions/
- Source link:
Those bans were imposed in reaction to Russia's illegal invasion of Ukraine. Technology firms have quickly and willingly complied with their new responsibilities by ceasing exports to Russia. Some – notably [2]Oracle and SAP – even went so far as to suspend their operations in Russia. Apple has also [3]suspended all sales in Russia.
Tech exports are an important contributor to South Korea's economy – Samsung's global revenue across all of the sprawling group's businesses equates to around 17 per cent of the nation's GPD. And according to [4]data from analyst firm IDC , Russia's smartphone market runs to between 35 and 40 million units a year, with Samsung holding 34 per cent of that.
[5]
The Ministry's note on smartphone export exemptions states that the US Commerce Department is happy for those phones to keep reaching Russia – even if they're made at Samsung plants outside Korea – provided they're not sold to military buyers.
[6]
[7]
Whitegoods, another big Korean export, are subject to the same rules. So are cars.
[8]Details of '120,000 Russian soldiers' leaked by Ukrainian media
[9]EU cuts off key Russian banks from SWIFT system
[10]New flashpoint: US may ask Chinese tech firms to bin Russia
[11]Ukraine asks ICANN to delete all Russian domains
Evading sanctions by acquiring kit through front companies is not an advanced manoeuvre: it is therefore entirely conceivable that Russian troops will enjoy uniforms tumbled in [12]LG's new software-defined clothes dryer and discuss that appliance on a [13]Samsung Galaxy S22 – while riding in a Hyundai.
While South Korean industry has reason to feel relieved about export exemptions, Indian firms are nervous that the US could hit them with secondary sanctions. India has called for an end to violence in Ukraine but abstained from a United Nations vote on a resolution "deploring Russia's aggression". India also has strong defense ties with Russia, having pledged to acquire missile systems from its northern neighbor in 2021.
The US has previously used secondary sanctions to deter those who nourish its foes. Nations whose businesses defied bans on exports to Iran, for instance, have found themselves squeezed.
[14]
Indian banks are the most likely target of any secondary sanctions if New Delhi is seen to be too much of a pal to Putin. But Washington could also crimp India's access to H-1B visas – the permits that allow skilled workers in short supply stateside to take jobs in. H-1B visas are prized by Indian techies, and are also controversial as Indian services companies are [15]accused of using them to bring lower-paid workers from home rather than paying American residents market rates.
We live in uncomfortably interesting times. ®
Get our [16]Tech Resources
[1] http://www.motie.go.kr/motie/ne/motienewse/Motienews/bbs/bbsView.do?bbs_seq_n=155118012&bbs_cd_n=2¤tPage=1&search_key_n=&cate_n=&dept_v=&search_val_v=
[2] https://www.theregister.com/2022/03/02/oracle_and_sap_suspend_business/
[3] https://www.theregister.com/2022/03/02/oracle_sap_sberbank/
[4] https://www.idc.com/getdoc.jsp?containerId=prEUR248407421
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YiCf34xWtNgtM3rilVfqrQAAAJU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YiCf34xWtNgtM3rilVfqrQAAAJU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YiCf34xWtNgtM3rilVfqrQAAAJU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2022/03/02/russian_soldier_leaks/
[9] https://www.theregister.com/2022/03/02/oracle_sap_sberbank/
[10] https://www.theregister.com/2022/03/02/china_us_russia_sanctions_tangle/
[11] https://www.theregister.com/2022/03/01/ukraine_icann_domains/
[12] https://www.theregister.com/2022/01/25/lg_upgradeable_appliances/
[13] https://www.theregister.com/2022/02/09/samsung_s22_s8/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YiCf34xWtNgtM3rilVfqrQAAAJU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2020/10/29/h1b_visa_change/
[16] https://whitepapers.theregister.com/
I'm guessing here, but if a third country exports to another country already under sanctions then aren't sanctions imposed against that third country too?
Samsung et al presumably do trade in the US so have to comply with local laws in doing so. As such, they need to be careful and not violate any US sanctions from the parent company in case the US decides to cause them issues. I know from experience in UK banks, we're made aware of US sanctions & laws in internal training because breaking them could cause problems with doing busing in the US.
Same in law firms as well
Android
Samsung phones are (almost) 100% android, which is made by Google... Which is american. That might have something to do with it?
It's entirely possible that the washing machines have US made components in them as well I guess (even the non "smart" ones).
I think if you break US sanctions, you will be sanctioned as well.
Hence why Korea has to ask the US for permission to be allowed to trade in Russia, so that they can also keep trading in the US.
It's same as me telling you that you can be a friend with me or my enemy X. And you have to discuss / negotiate with me to be friends to both of us. Or you can be a friend to only one of us.
Well, given the crapware found on Samsung phones, maybe they had to check the backdoors were up to date? In that case, I'd say the Americans would even have a degree of enthusiasm getting them into Russian hands as soon as possible.
"it is therefore entirely conceivable that Russian troops will enjoy uniforms tumbled in LG's new software-defined clothes dryer"
Providing they can still get into them when they come out three sizes smaller.
Surely we want non-Russian phones in use in Russia?
Surely we should be stepping-up exports of back-doored phones to Russians. Then those that were sold in Russia but then travel into Ukraine can silently report their position. Or self-destruct. After all, we know that Samsung has perfected the latter capability already.
WTF. Why does South Korea need approval from the US.
Regardless if you feel.that sanctions on Russia are useful or not (they did get Apple to stop selling their crapware in their country, so that's a plus in my book).
This essentially means that they're not a sovereign country, but a colony of the US, only existing at the behest of a foreign government.