Taiwan sanctions Russian supplier and tightens export controls to block indirect tech transfers to Russia
Taiwan's Economy Ministry has imposed sanctions on Russian supplier iMachine, banning Taiwanese companies from selling it any products. Additionally, the ministry has required Taiwanese companies to ensure that their high-tech equipment does not reach Russia through third-party countries.
According to a press release, the move was prompted by recent media reports about iMachine procuring Taiwanese machinery through third countries for later use in Russia's military industry. "The reputation of the Taiwanese business is critical for future global market sales, and the industry must be protected," the ministry’s statement reads.
Taiwanese laws mandate industrial companies to declare end-users of their products to prevent Russia from acquiring high-tech Taiwanese goods via third parties.
Taiwan's Economy Ministry is urging local producers to ensure their products do not end up in Russia or Belarus, particularly when exported to countries with an increased risk of being transshipment points, such as Turkey, the UAE, and Central Asian nations, the press release stated.
Additionally, Taiwan’s authorities have reported a fifteen-fold increase in fines for illegal exports to Russia and Belarus, now up to 1 million US dollars. "Taiwan's Economy Ministry is aligning with the practices of its international allies by sanctioning enterprises contributing to Russia's military expansion," the statement says. Currently, there are 1,900 companies on this sanctions list.
On January 26, an investigation published online by The Insider and Taiwanese news website The Reporter revealed that despite Taiwanese authorities' pro-Ukraine stance, Taiwan has become a significant provider of metalworking machinery to Russia since the onset of Russia's full-scale military invasion of Ukraine.
"Germany, Japan, and Switzerland have exited the Russian market, and Chinese machinery fails to meet quality standards; therefore, Taiwanese machining centers, lathes, and EDM machines meet the needs of Russia's military-industrial complex," the report stated. "The sanctions imposed by Taiwan are ineffective as machinery is being sent to Russia via Turkey and other countries, and some types of machinery are not even subject to restrictions."