Taiwan Halts Machine Exports to Russia, Warns of $31,000 Fines

Written by Kathrine Frich

Nov.04 - 2024 4:18 PM CET

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Photo: Sandor Szmutko / Shutterstock.com
Photo: Sandor Szmutko / Shutterstock.com
Companies found breaching these sanctions now face fines exceeding $31,000.

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Taiwan has officially ceased exporting machinery to Russia. The Taiwanese Ministry of Economic Affairs confirmed that as of March, Taiwan prohibited the export of certain machine components to both Russia and Belarus, building on earlier restrictions.

This decision aligns with ongoing efforts to prevent the transfer of dual-use technology that could be used for military purposes by these nations.

An Expanding List of Sanctions

Taiwan’s first round of sanctions against Russia came in April 2022, shortly after the start of the Ukraine conflict.

These restrictions included a ban on 57 categories of advanced tech and dual-use goods, ranging from semiconductors and aerospace equipment to lasers and sensors, according to URA.

In May of the same year, Taiwan extended similar sanctions to Belarus. Over the following months, Taiwan increased the scope of these restrictions, adding 52 more items to its export control list in early 2023, followed by an additional 45 items this past January.

Taipei has now broadened its list to include 77 types of equipment, with a particular focus on high-tech machinery, such as computer numerical control (CNC) machines.

According to Taiwan’s Central News Agency, the equipment covered by these latest restrictions represents roughly $45 million in exports in 2023, underscoring the scale of the potential economic impact.

Russia’s Response and Self-Sufficiency Claims

The Russian government has labeled Taiwan as an "unfriendly" state, but officials in Moscow insist that these sanctions will not affect the availability of machinery within Russia.

According to Russia’s Ministry of Industry and Trade, the country has the resources to substitute Taiwan’s exports, either by ramping up local production or by sourcing from allied nations.

The ministry argues that Russia’s technology sector remains resilient and capable of maintaining a stable supply chain without Taiwanese imports.

To enforce compliance, Taiwan has imposed stringent penalties on violations of its export rules.

Companies found breaching these sanctions now face fines exceeding $31,000 for first offenses. Additionally, Taiwan plans to engage manufacturers directly to ensure strict adherence to the rules, aiming to prevent any unauthorized sales through third countries.

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