PC Case Maker DeepCool’s US Business May Be Doomed Over Sales to Russia

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Chinese PC case and fan provider DeepCool may have to halt all business in the US due to sanctions from the White House. On Thursday, the US State Department sanctioned DeepCool for allegedly selling $1 million in products to two Russian companies. The sanctions are part of a larger crackdown on over 300 individuals and entities for helping Russia evade current US sanctions against the Kremlin for its invasion of Ukraine. In response, the State Department is going after seven Chinese companies, including DeepCool, for supplying export-controlled microelectronics to Russia.  “Imports from the PRC (People’s Republic of China) are filling critical gaps in Russia’s defense production cycle to produce weapons, ramp up defense production, and bolster its military-industrial base,” the department added. We don’t know what DeepCool sent to Russia. But the Chinese vendor allegedly sold products to a Russian computer manufacturer and a Russian company involved in freight transportation. In September, the US Treasury Department sanctioned both Russian entities to undermine the country’s military supply chain. DeepCool didn’t immediately respond to a request for comment. But the sanctions appear to be a death sentence for the Chinese vendor’s US operations, including its customer support.

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“All transactions by US persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt,” the State Department’s notice said. Hence, buying or selling a DeepCool product in the US is technically breaking the law. For now, retailers including Amazon, Micro Center, Newegg, and Walmart continue to list DeepCool products, although that could change soon.

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