US sanctions may force DeepCool to stop its US operations
DeepCool have been hit with US sanctions for “supporting Russia’s war effort”
The US State Department has confirmed that sanctions have been placed on Beijing DeepCool Industries. DeepCool is a manufacturer of PC cooling solutions, cases and power supplies. The company has allegedly supplied Russian companies with over $1 million worth of “Common High Priority” (CHPL) goods. These are goods that can assist Russia’s war efforts against Ukraine.
DeepCool has allegedly sold goods to Aktsionernoe Obshchestvo Taskom and OOO Novyi Ai Ti Project. Both companies reportedly support of Russia’s wartime efforts. Aktsionernoe Obshchestvo Taskom is a freight/transportation company. OOO Novyi Ai Ti Project is a manufacturer of computers, memory devices, and information security equipment.
BEIJING DEEPCOOL INDUSTRIES CO LTD is a PRC-based company involved in the supply of over $1 million worth of CHPL items to Russian companies, including the U.S.-designated, Russia-based AKTSIONERNOE OBSHCHESTVO TASKOM and OOO NOVYI AI TI PROEKT.
The US’ sanctions will prevent all US firms from transacting any business with “Beijing DeepCool Industries”. This will likely mean that the US-based parts of DeepCool will need to cease all operations. After all, they can no longer work with their parent company. As a result, American retailers may soon start delisting DeepCool products. Additionally, these sanctions could prevent DeepCool from providing after sales support to its existing customer.
Below is what the US government states are the implications of their new sanction.
All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
Currently, it is unknown how these new sanctions will impact DeepCool globally. DeepCool are unlikely to be able to sell any of their products in the US anytime soon.
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