SG’s Alexsong Sanctioned by U.S. for Allegedly Helping Russian Partners
The U.S. Treasury Department on Thursday imposed new sanctions on a group of new entities and individuals that are believed to have ties to Russia. Among them is Alexsong Pte Ltd, a Singapore-based telecoms and automotive equipment wholesaler that allegedly helped Russia skirt sanctions.
According to Yahoo Finance (via The South China Morning Post), the sanctions ban the targeted entities and individuals from accessing their assets in the U.S. and American companies from trading with them.
The report further notes that the inclusion of Alexsong is particularly significant because it represents a potential "secondary sanction risk" that Chinese businesses are navigating through the current market. The move also serves as a “warning shot” to other entities, regardless of where they are based, not to help Russia avoid sanctions amid its invasion of Ukraine.
"We will continue to target Putin's war machine with sanctions from every angle until this senseless war of choice is over," said Janet Yellen, Secretary of the Treasury, in a statement.
Founded in 1991, Alexsong has “29 years of expertise in the wholesale market, both locally and globally”, the company’s website reads. It offers wholesale trades for several goods, including electronics, test and measurement equipment, arcade machines, coin and bill acceptors, vending equipment and car spare parts, to name a few examples. The company, for instance, carries Apple and Samsung products for consumer electronics and IndigoVision and LawMate for general electronics, as listed on its website. Alexsong is also a member of the Singapore Business Federation.
Alexsong declined to comment on the accusations levelled by the U.S. Treasury Department.
Another entity that was sanctioned on Thursday is Joint Stock Company (JSC) Mikron, Russia's largest microelectronics manufacturer. One of the company’s top markets is China, where it sold more than 10 million chips to Chinese electronic card manufacturers and system integrators in 2010.
Mikron similarly declined to comment on the new sanctions.
Benjamin Kostrzewa, a former assistant general counsel with the Office of the US Trade Representative (USTR), said in an online seminar that secondary sanctions can be a problem for trade between companies in China and Russia. For instance, any company in China exporting products containing US microchips to Russia would be subject to penalties, which can hurt the bottom line.
Other sanctioned Russian entities include OOO Pamkin Khaus, OOO Robin Tried, OOO Serniya Engineering and OOO Sertal.
The U.S. Treasury Department imposed new sanctions on a group of new entities and individuals that are believed to have ties to Russia, including Singapore's Alexsong Pte Ltd.
The electronics wholesaler allegedly facilitated transactions that helped Russia evade sanctions.
The move reportedly serves as a “warning shot” to other entities, regardless of where they are based, not to help Russia avoid sanctions amid its invasion of Ukraine.