The Biden administration is reportedly set to ban the sale of Russian cybersecurity firm Kaspersky Lab’s software in the United States, citing potential national security risks.
What Happened: The ban, set to be announced on Thursday, is a result of Kaspersky Lab’s close ties to the Russian government, Reuters reported. The ban will affect Kaspersky’s large U.S. customers, including critical infrastructure providers and state and local governments.
The ban will be accompanied by the addition of the cybersecurity company to a trade restriction list, which will further damage the company’s reputation and potentially impact its overseas sales.
The Biden administration is using the broad powers created by the Trump administration to implement these new rules, which will come into effect on Sep. 29, 2024, 100 days after publication. The ban will also include software updates, resales, and licensing of the product.
Why It Matters: The decision to ban Kaspersky Lab’s software comes amid the Biden administration’s efforts to counter Russia’s attempts to bypass Western sanctions and support its war efforts against Ukraine. Earlier in February, the U.S. government announced sanctions on 500 Russian entities targeting the military-industrial complex and companies that aid the ongoing war.
Despite these measures, the economic sanctions imposed by Western nations on Russia have not been as effective as hoped in ending the war in Ukraine. The sanctions have targeted key sectors such as energy, frozen foreign assets, and severed financial ties with much of the West.
However, Russia’s wartime economy has shown resilience, with a 3.6% annual growth in 2023 following a 1.2% GDP dip in 2022. Russia expert Owen Matthews suggested that the explosion of the Nord Stream pipelines in September 2022 has had a more significant impact on Russia’s economy than the Western sanctions.
Image by Eugene Kaspersky via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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