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US sanctions PC maker DeepCool for selling products to Russia, fueling its war efforts in Ukraine

One of the biggest makers of air and liquid cooling products for PCs could be out of business in the U.S.

On Wednesday, the U.S. State Department announced sanctions on Beijing DeepCool Industries, a prominent manufacturer specializing in PC cases, cooling devices, and power supplies. DeepCool is accused of supplying Russia with more than $1 million worth of goods from the Common High Priority List (CHPL), which are crucial for supporting its military efforts in Ukraine.

According to the announcement, DeepCool sold goods to two Russian companies, Aktsionernoe Obshchestvo Taskom and OOO Novyi Ai Ti Project, known to aid in war efforts. Taskom is involved in freight transport, while OOO Novyi is a PC manufacturer.

The Bureau of Industry and Security (BIS), part of the U.S. Department of Commerce, oversees the CHPL, which identifies items at risk of being diverted illegally to Russia due to their strategic importance for the war efforts.

Despite unveiling new products at Computex 2024, including air and liquid CPU coolers, fans, PC cases, and advanced power supplies compatible with the latest hardware, DeepCool is now unable to sell these products in the U.S. This restriction also affects its U.S. subsidiary, which may have to halt operations immediately, impacting customer support services.

Under the sanctions, any transactions involving DeepCool products by U.S. residents or within U.S. territory are prohibited, unless specifically licensed by the Office of Foreign Assets Control (OFAC). This prohibition extends to any business dealings with DeepCool's parent company in China.

While online retailers like Amazon, MicroCenter, and Newegg currently list DeepCool products for sale, their future availability in the U.S. market remains uncertain pending further regulatory developments.

In summary, the sanctions imposed on DeepCool represent a significant disruption in the availability of its products within the U.S., affecting both consumers and the tech industry at large.

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