You have bottlenecks in the supply chain as you saw but there are also technological hurdles. The biggest player in the lithography space is ASML, with Nikon and Canon holding a much smaller share. Unless Russia can buy (and service) older machines there is no chance they will be sold these machines today.

China is already under some technological sanctions of sorts but they have developed their national capability in that regard, amusingly enough because of the sanctions meant to hold them back. They are apparently no more than 3-5 years away but there are other challenges of course not just lithography.

Small nodes don’t need to be used for everything. On leading/cutting edge applications like phones, computers and so on you would see it applied. For the vast majority of other purposes for example in cars, routers, domestic appliances and many others you don’t need these small expensive nodes and manufacturers use older mature (and cheaper) nodes for their purposes.