Russian Industry Targeted, Not Consumers, If Biden Export Curbs Imposed

A flag is seen on the US delegation's car, which is parked in front of the headquarters of the Russian Foreign Ministry in Moscow, Russia January 26, 2022. (Reuters)
A flag is seen on the US delegation's car, which is parked in front of the headquarters of the Russian Foreign Ministry in Moscow, Russia January 26, 2022. (Reuters)
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Russian Industry Targeted, Not Consumers, If Biden Export Curbs Imposed

A flag is seen on the US delegation's car, which is parked in front of the headquarters of the Russian Foreign Ministry in Moscow, Russia January 26, 2022. (Reuters)
A flag is seen on the US delegation's car, which is parked in front of the headquarters of the Russian Foreign Ministry in Moscow, Russia January 26, 2022. (Reuters)

The Biden administration plans to spare everyday Russians from the brunt of US export controls if Russia invades Ukraine, and focus on targeting industrial sectors, a White House official said.

"Key people" will also face "massive sanctions" a top Commerce official said in a separate speech on Friday.

The comments narrow the scope of potential curbs on imports to Russia that had previously been described as disrupting Russia's economy more broadly, hitting industrial sectors and consumer technologies like smartphones.

"We can't preview every action, but the intent there really is to have measures that we think will degrade Russia's industrial capabilities and industrial production capacity over time, not to go after individual, everyday Russian consumers," White House national security official Peter Harrell said in a virtual speech for the Massachusetts Export Center on Thursday that received little media coverage.

Harrell, who sits on the National Security Council, said the US was prepared, immediately after an invasion of Ukraine, to impose "crippling financial costs on major Russian financial institutions as well as to impose a range of quite sweeping export controls that will degrade Russian industrial capacity over the mid- and long-term."

US Commerce Department official Thea Kendler, who spoke to the export gathering on Friday, said "we are contemplating massive sanctions targeting key people and industries that were not on the table in 2014." In 2014, Russia invaded and annexed Crimea from Ukraine.

Three days ago US President Joe Biden said he would consider personal sanctions on Russian President Vladimir Putin if he sent forces into Ukraine.

Harrell said that he hoped the hundreds of hours he and his colleagues had spent over the last couple of months developing measures would never see the light of day, but that they are prepared to impose the sweeping measures.

The two-fold strategy includes financial sanctions against major Russian financial institutions "to trigger capital flight, to trigger inflation, to make the Russian central bank provide bailouts to its banks... so Putin feels costs on day one," Harrell said.

Export control measures would be announced as part of the package but would probably not have the same immediate impacts, and instead "degrade Russia's ability to have industrial production in a couple of key sectors".

Harrell did not detail the sectors, but other White House officials have mentioned aviation, maritime, robotics, artificial intelligence, quantum computing and defense.

A person familiar with the matter told Reuters on Thursday the focus was on strategic sectors significant to Russian leadership. Asked about Russia's lucrative oil and gas sector, the person said nothing was off the table.

Harrell said he expected the European Union to join in the effort. "Based on the discussions I've been having and, frankly people way above me ... we are quite confident we will have a very high degree of alignment with Europe if Russia does invade Ukraine."

Sources have said the US also may apply a rule to stop companies abroad from shipping items like semiconductors made with US technology to Russia, as it did to curb the global chip supply to China's Huawei, which it views as a threat.

The person familiar with the matter said on Thursday that US officials are also having conversations with Taiwan and South Korea, where major manufacturers of chips are located, and countries in southeast Asia, where some packaging is done.



French Companies to Inject New Investments in Egyptian Market

Hossam Heiba, Chairman of the Investment Authority and Free Zones, signs a memorandum of understanding with the French Investment Promotion Agency in the presence of Hassan Al-Khatib, Minister of Investment and Foreign Trade. (Egyptian Investment Authority)
Hossam Heiba, Chairman of the Investment Authority and Free Zones, signs a memorandum of understanding with the French Investment Promotion Agency in the presence of Hassan Al-Khatib, Minister of Investment and Foreign Trade. (Egyptian Investment Authority)
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French Companies to Inject New Investments in Egyptian Market

Hossam Heiba, Chairman of the Investment Authority and Free Zones, signs a memorandum of understanding with the French Investment Promotion Agency in the presence of Hassan Al-Khatib, Minister of Investment and Foreign Trade. (Egyptian Investment Authority)
Hossam Heiba, Chairman of the Investment Authority and Free Zones, signs a memorandum of understanding with the French Investment Promotion Agency in the presence of Hassan Al-Khatib, Minister of Investment and Foreign Trade. (Egyptian Investment Authority)

Several French companies have committed to making new investments in the Egyptian market across various sectors, including transportation, food, and pharmaceuticals.

According to a statement by Egypt’s General Authority for Investment and Free Zones (GAFI) on Saturday, companies such as Lesaffre (in yeast production), Alstom (transport), Sanofi (pharmaceuticals), and Decathlon (specialized retail in sportswear and equipment) have pledged to invest further in Egypt. These plans aim to leverage the significant improvements in the country’s investment infrastructure and legislative framework.

French investments in Egypt currently stand at approximately €7 billion (around $7.7 billion), distributed across 180 companies in various sectors. The companies’ commitment to expansion was made during a promotional visit to France by GAFI CEO Hossam Heiba, accompanied by Minister of Investment and Foreign Trade Hassan Al-Khatib.

The visit included participation in the Egyptian-French Business Forum held in Paris and Marseille, with the attendance of French Minister of Foreign Trade Sophie Primas and more than 350 French companies.

The Egyptian officials also held meetings with John Cockerill, a leader in hydrogen production equipment, representatives of bpi France, a French investment bank and the chairman of CMA CGM, a French logistics and maritime company and a key development partner of Egypt.

Heiba noted that Egypt has successfully attracted a significant number of global and French companies, benefiting from its strategic position as an investment and export hub for Africa. He emphasized that his country has maintained its position as the top African destination for investments in 2022 and 2023, with expectations of continuing this trend in the coming years. This is further supported by the record-breaking foreign direct investment, which reached $46.1 billion in the 2023-2024 fiscal year.

Additionally, Heiba signed a memorandum of understanding (MoU) with the French Investment Promotion Agency, which aims to sustain investment cooperation between Egypt and France, focusing on providing investor support, fostering partnerships between the two countries' business communities, and sharing data on target sectors and legislative developments. The agreement also covers the organization of investment promotion events and exploratory business tours.

The French side highlighted the substantial investments made by French companies in Egypt, particularly in telecommunications, healthcare, and cosmetics. Companies such as Valeo, Capgemini, Atos, and Orange Business Services operate in Egypt’s IT and communications sector, while Servier, AXA, AXA One Health, Sanofi, and Air Liquide have made significant contributions to the healthcare sector. L'Oréal is also a major player in the cosmetics industry.

This promotional visit is part of Egypt’s efforts aimed at expanding investment ties with Europe, following the 2024 Egypt-European Investment Conference held in Cairo in June, and the March 2023 announcement of an enhanced strategic partnership between Egypt and the European Union.