FT: EU strengthens export controls to restrict Russia’s access to advanced tech

The European Commission has assumed new powers over the bloc’s export controls in a move aimed at curbing Russia’s access to cutting-edge technology.

In a departure from decades-long practice, the commission last week announced restrictions on the export of so-called dual-use equipment, which can have both civilian and military applications. The measures target products including quantum computers, semiconductor-making machines, and integrated circuits, Caliber.Az reports via The Financial Times. 

“Uniform EU-level controls guarantee effectiveness and transparency while maintaining the Union’s competitiveness and a level playing field for economic operators,” the commission said.

Until now, the EU had drawn up lists of dual-use goods based on multilateral agreements. However, the main forum for such regulation, the Wassenaar Arrangement, includes Russia, which has historically blocked the listing of products it wants for its war in Ukraine.

Last week’s decision marked the first time since Moscow’s full-scale invasion in 2022 that the commission acted without securing international consensus, said Bart Groothuis, an EU lawmaker and former Dutch cybersecurity official.

“These export controls are vital to the economic security of European businesses,” Groothuis told the Financial Times.

The Wassenaar Arrangement, established in 1996 and based in Vienna, includes 42 members—including the US and Russia, but not China—and aims to prevent dual-use exports from contributing to military capabilities or falling into the hands of terrorist groups.

While the EU has already imposed sanctions on Russia, including restrictions on dual-use exports, these measures require reapproval every six months, making enforcement challenging. Member states have also followed Wassenaar guidelines, which were primarily aimed at Iran and terrorist organizations. Previously, product lists had to be adopted at the national level before inclusion in the EU list; under the new rules, they are automatically added unless a member state objects.

In addition to chipmaking machines, the new EU restrictions cover quantum technologies such as cryogenic cooling systems, high-temperature coatings, and 3D printers. Companies wishing to export these items must obtain a licence. The updated list is scheduled to take effect in November, pending objections from member states or the European Parliament.

The commission is also seeking expanded powers to coordinate national control lists and to screen inbound and outbound investments for security risks.

Groothuis said the enhanced powers would allow EU countries, which retain ultimate authority over export controls, to present a unified stance against Washington’s push for a more aggressive approach toward China.

China has increasingly employed export controls, such as limiting sales of critical minerals, in response to US tariffs and EU restrictions. Europe has sought to restrict sales of semiconductors and other technology to countries it suspects will transfer them to Russia for use in drones and weapons, but has avoided going too far for fear of economic retaliation from China.

The Netherlands has limited exports of advanced chipmaking machines from ASML to China under pressure from former President Joe Biden, and US President Donald Trump had urged even stricter measures, according to sources familiar with the matter.

The Trump administration was pushing “individual European member states and companies . . . much harder,” Groothuis said. “Europe’s sovereignty is best served by co-operation.”

By Sabina Mammadli