The US government is set to announce wider sanctions on Wednesday targeting the sale of semiconductor chips and other goods to Russia, with the aim of cutting off third-party sellers in China fuelling Moscow's war effort.

According to sources cited by Reuters, the moves are part of a broad push by the Biden administration to respond to Russian attempts to circumvent Western sanctions imposed over its invasion of Ukraine.

The administration will unveil plans to broaden existing export controls to cover US-branded products, not just those made domestically, the sources said. It also plans to identify certain Hong Kong entities accused of shipping restricted goods to Moscow.

The White House and Commerce Department declined to comment on the changes, which were first reported by Bloomberg. However, White House spokesperson John Kirby earlier told reporters that Washington would announce new sanctions and export controls on Russia.

The news came as President Joe Biden prepared to depart for a Group of Seven (G7) summit in southern Italy, where boosting support for Ukraine and undermining Russia's military capabilities is a top priority according to one source.

US officials have voiced growing frustration at China's burgeoning trade with Russia, which they say is allowing Moscow to keep arming its forces. Exports of machine tools and manufacturing equipment from China and others are helping Russia produce weapons it previously imported, two sources said.

They argue changes are needed to broaden the definition of US goods covered by export controls, given Moscow has now reoriented its entire economy around the war effort.
Daleep Singh, a White House deputy national security adviser, said last week that Ukrainian President Volodymyr Zelenskyy would meet G7 leaders to underline the dire situation facing his country's forces against Russia.

Washington is also poised to unveil significant new sanctions against financial institutions enabling the "technology and goods channels" supplying the Russian military, the sources added.

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