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Six Malaysian companies sanctioned by US for alleged links to Russia's manufacturing sector [WATCH]

KUALA LUMPUR: Six Malaysian companies have been slapped with sanctions by the United States on Oct 30 for operating or having operated in the Russian manufacturing sector.

They were among the 400 entities and individuals sanctioned for allegedly 'enabling Russia's prosecution of its illegal war', according to a statement issued by the US State Department on its website.

A US State Department spokesman said the designations are intended to disrupt sanctions evasion and target entities in several third countries, including the People's Republic of China, India, Malaysia, Thailand, Turkiye, and the United Arab Emirates.

"All targets are being designated pursuant to Executive Order (E.O.) 14024 which authorises sanctions with respect to specified harmful foreign activities of the Government of the Russian Federation.

"The United States will continue to use all tools at its disposal to disrupt support for Russia's military-industrial base and curtail the Kremlin's ability to exploit the international financial system and generate revenue in furtherance of its war against Ukraine.

"We continue to stand in solidarity with Ukraine in defending its homeland from Russia's aggression," read the statement.

The six companies are Zeolite Mansford Sdn Bhd (Zeolite), Centrina United Sdn Bhd (Centrina), Gyntec Carbon Sdn Bhd (Gyntec), Moralability Industry Sdn Bhd (Moralability), Melix Global Sdn Bhd (Melix Global).

It said Zeolite shipped approximately $2.1 million worth of Common High Priority List or CHPL (Tier 3) items, including ball bearings, to Russia-based companies in March.

In March, Maxtrum shipped approximately $2.1 million worth of CHPL (Tier 3) items, including ball bearings, to Russian-based companies.

Between January last year and February this year, Centrina shipped approximately $2.7 million worth of CHPL (Tier 3) items, including ball bearings, to Russia-based companies.

Between February last year and April this year, Gyntec shipped approximately $2 million worth of CHPL Tier 3 items to Russia-based companies.

Moralability shipped approximately $1.3 million worth of CHPL Tier 3 items to Russia-based companies between November last year and April this year.

Melix Global exported over $190,000 worth of CHPL items such as ball bearings to US-designated BALTPROMSERVIS in April.

Reuters reported the action reflected US' continued efforts against Russia in countering its evasion of measures imposed over Moscow's invasion of Ukraine.

Quoting a spokesman, it reported that "the action was the most concerted push so far against third-country evasion".

CHPL, developed by the Department of Commerce's Bureau of Industry and Security (BIS), highlights industry items that pose a heightened risk of being diverted illegally to Russia due to their importance to its war efforts.

The US has repeated its warning against supplying Russia with Common High Priority Items - advanced components including microelectronics deemed by the U.S. and European Union as likely to be used for Russia's war in Ukraine.

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