Sanctions Tracker – Export Ban on Machinery to Russia and the Ukraine (November 2023)

In an ongoing effort to respond to the Russian invasion of Ukraine, the Australian Government continues to broaden its sanction regime against Russia. Notably, the government has turned its focus on declaring a ban on the export of machinery and related parts to Russia and areas of Ukraine currently under Russian control as foreshadowed earlier in the year.

The measures show Australia is remaining a part of a coordinated global response with its G7 allies. Australia has already sanctioned over 1,200 individuals and entities contributing to Russia’s invasion of Ukraine.

Export ban on machinery

Further tightening its stance against Russia, on 25 October 2023, Foreign Minister Penny Wong declared a ban on the export of machinery and related parts to Russia and areas of Ukraine currently under Russian control.^[1] In particular:

• Interchangeable tools for hand tools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools (tariff code 8207);
• Nuclear reactors, boilers, machinery and mechanical appliances (and parts thereof) (tariff code 84); and
• Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers (and parts and accessories of such articles) (tariff code 85).

This ban aims to prevent Australian businesses from directly or indirectly supporting Russia's war efforts.

This move by the Australian government reaffirms the country's commitment to supporting Ukraine while exerting significant pressure on Russia to cease its aggressive actions. It serves as a reminder for Australian manufacturers and exporters to be alert to their sanctions compliance obligations.

On the same day, the Australian Government announced a further $20 million package of military assistance to Ukraine to fund de-mining equipment, portable x-ray machines, a 3D metal printer, and counter drone systems which will contribute to Ukraine’s defence.

[1] Autonomous Sanctions (Export Sanctioned Goods—Specified Ukraine Regions) Designation 2023; Autonomous Sanctions (Export Sanctioned Goods—Russia) Amendment (No. 1) Designation 2023.