The Biden administration announced sweeping restrictions to deny Russia access to products based on U.S. technology manufactured overseas by non-U.S. companies in response to its invasion of Ukraine.

President Joe Biden is creating two new so-called foreign direct product rules for Russia and the Russian military, the Commerce Department’s Bureau of Industry and Security said in a statement on Thursday. The rule has been used against Huawei Technologies Co. to restrict the company’s ability to use Taiwan Semiconductor Manufacturing Co. and others to fabricate their chips.

The U.S. is also creating a new licensing requirement for American companies to ship items including microelectronics, telecommunications items, sensors, navigation equipment and aircraft components to Russia. Some items weren’t previously controlled for Russia and will significantly impact the nation’s ability to buy things that it doesn’t produce, Commerce said.

The rules will be coordinated with allies and partners to deny Russia access to products used in the defense, aerospace, and maritime sectors.

“Russia’s actions are an immediate danger to those living in Ukraine, but also pose a real threat to democracy throughout the world,” Secretary of Commerce Gina Raimondo said in the statement. “By acting decisively and in close coordination with our allies and partners, we are sending a clear message today that the United States of America will not tolerate Russia’s aggression against a democratically elected government.”

Restrict Access

The export controls are the most comprehensive used by the U.S. for targeting a single nation and will restrict Russia’s access to items that can support the country’s defense industrial base and military and intelligence services, the Commerce Department said.

Thursday’s action also imposes stringent controls on 49 Russian military end-users, which have been added to the BIS’s so-called Entity List, prohibiting American firms from doing business with them without first obtaining a U.S. government license.

A White House statement said that Australia, Canada, the European Union, Japan, and the U.K. also will take similarly forceful actions to hold Russia accountable, deepening the impact on the nation more than any action that the U.S. could have taken alone.

“Getting this number of allies on board is a significant step in ensuring the effectiveness of the controls,” said Cordell Hull, who led the BIS during the Trump administration and is now a principal at national security advisory firm WestExec.

The Commerce Department pledged that the U.S. government will follow up with additional stringent measures in the coming days based on any additional destabilizing actions by Russia.

The export controls for the military and companies working for the military are broad and will affect more items than in the past, said Kevin Wolf, a partner at Akin Gump Strauss Hauer & Feld LLP in Washington who helped oversee export controls as an assistant secretary at the BIS during the Obama administration. The controls go beyond technology and cover everyday items as basic as toothbrushes if they’re manufactured with American tools or software, he said.

“The breadth, the reach and coordination with allies are the points that jump out,” Wolf said. The actions collectively “will have a significant impact on the Russian economy for the long term.”