Smartphones exempt from US export ban on Russia The sanctions imposed by the United States over Russia’s invasion of Ukraine include a ban on exports of consumer electrical and electronic equipment such as smartphones, washing machine Refrigerators etc. are not covered and vehicles are also not included. As South Korean companies are concerned about being banned from exporting to the Russian market, the South Korean government trade, The Ministry of Industry and Energy made an inquiry to the US Department of Commerce’s Bureau of Industry and Security (BIS) and announced the answer. South Korean companies from the Russian market Samsung Electronics has the largest market share in smartphones and TVs in the Russian market.
LG Electronics is a competitor. There is competition in the home electronics and electrical appliances market. Hyundai Motor and its Kia Corp produce about 200,000 vehicles a year in Russia. Foreign Direct Product Rule (FDPR) Smartphones in principle vehicles, Consumer electronics and electrical goods such as washing machines are covered by the Foreign Direct Product Rule (FDPR), but exports for public consumption are exempted. The minister said that if the export is for military purposes, it will not be allowed.
Under the FDPR, companies are required to obtain an export license from the United States before exporting black knowledge-related materials using American technology to Russia. Korean exporters are worried because many products exported from Korea use American technology and software. There are defined technical areas. Electronics (Semiconductor) Computer Communications/Information Security Sensors/Lasers Avionics (a combination of aviation and electronics) refers to electronic systems used in aircraft, marine electronic systems used in ships, and electronic systems used in spacecraft.
At present, a total of 32 countries, including 27 EU countries, have announced their plans to sanction the Russian app. It exempts countries from the FDPR that have declared their program.