What just happened? DeepCool, the Chinese company behind some very popular air and liquid cooling devices, PC cases, and power supplies, may have to stop all its US operations, including after-sales support. The firm has been sanctioned by the State Department for allegedly selling $1 million worth of products to two Russian companies.
The State Department writes that it is sanctioning 300 individuals and entities to degrade Russia’s capability to pursue its war of aggression against Ukraine. Sixteen of these are Chinese firms that are said to have supplied export-controlled items to Russia.
One of the names on the list is Beijing DeepCool Industries. The company is accused of supplying Russia with over $1 million worth of goods on the Common High Priority List (CHPL).
Two of the companies DeepCool sold goods to are known to support Russia’s war efforts in Ukraine: Aktsionernoe Obshchestvo Taskom, which is involved in freight transportation; and OOO Novyi, a PC manufacturer. Both Russian companies were sanctioned by the US Treasury Department last September.
Exactly what DeepCool sold to the companies is unclear. The 50 items on the CHPL pose a heightened risk of being diverted illegally to Russia because of their importance to the country’s war efforts, according to the BIS. They include the likes of electronic integrated circuits, capacitors, and printed circuits.
The sanctions mean that DeepCool’s US subsidiary will no longer be able to continue in the United States. Sales of its products will be halted in the country as US residents are prohibited from conducting any business with the company.
Placement on the sanction list also means that DeepCool may no longer be able to provide after-sales support to customers in the US. That could be especially problematic when it comes to warranty claims and service agreements.
DeepCool’s products are still available on Amazon, Newegg, and Micro Center, which is a bit strange as buying one of them would technically be breaking the law. The products could disappear soon, though, and the prospect of no after-sales service or warranties will likely put buyers off.