US sanctions PC cooling and power supply maker DeepCool for selling products to Russia, fueling its war efforts in Ukraine

🌈 Abstract

The article discusses the U.S. State Department's announcement of sanctions on Beijing DeepCool Industries, a popular manufacturer of PC cases, cooling devices, and power supplies. The sanctions are due to allegations that DeepCool supplied over $1 million worth of goods to Russia, which could help in its war efforts against Ukraine.

🙋 Q&A

[01] U.S. Sanctions on DeepCool

1. What are the key details of the U.S. sanctions on DeepCool?

• The U.S. State Department has announced sanctions on Beijing DeepCool Industries, a popular manufacturer of PC cases, cooling devices, and power supplies.
• DeepCool is alleged to have supplied Russia with more than $1 million worth of goods on the Common High Priority List (CHPL), which could help in its war efforts against Ukraine.
• The sanctions mean that DeepCool cannot sell its products in the U.S., and U.S. residents are prohibited from conducting business with the company.
• Retailers like Amazon, MicroCenter, and Newegg are still listing DeepCool products for sale, but this may change as the sanctions take effect.

2. What companies were DeepCool alleged to have supplied goods to in Russia?

• According to the press release, DeepCool sold goods to two Russian companies known to support war efforts: Aktsionernoe Obshchestvo Taskom and OOO Novyi Ai Ti Project.
• Taskom is involved in freight transport, and OOO Novyi is a PC manufacturer.

3. What is the Common High Priority List (CHPL) and how does it relate to the sanctions?

• The Bureau of Industry and Security, a division of the U.S. Department of Commerce, maintains the CHPL, which is a collection of items it says "pose a heightened risk of being diverted illegally to Russia because of their importance to Russia's war efforts."
• DeepCool's supply of goods on the CHPL to Russia is the basis for the U.S. sanctions against the company.

[02] Impact of Sanctions on DeepCool

1. How will the sanctions affect DeepCool's operations in the U.S.?

• DeepCool's U.S. subsidiary may have to stop all sales and most other operations immediately.
• This could affect the company's ability to provide after-sales support to customers.
• The sanctions mean DeepCool cannot transact any business with its parent company in China, and U.S. residents can no longer conduct business with the company.

2. How will the sanctions affect the availability of DeepCool products in the U.S.?

• Retailers like Amazon, MicroCenter, and Newegg are still listing DeepCool products for sale, but this may change as the sanctions take effect.
• If a U.S. person buys a DeepCool product, they may be technically breaking the law, even if they are conducting business with a U.S. company and not the listed company in China.