On April 6, 2018, the United States of America introduced a new package of sanctions against Russia against large Russian businessmen and their firms. This led to the collapse of the financial and stock markets, and the ruble against the dollar and the euro updated the lows of recent years. In response, the Russian government prepared a response to US sanctions.
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Complete list of responses
Bill No. 441399 - 7, "On Measures of Impact (Counteraction) on Unfriendly Actions of the United States and (or) Other Foreign States", was submitted to the State Duma of the Russian Federation on April 13.
The bill provides for the following restrictive measures directly related to the flow of goods and services of American origin:
- Restriction or prohibition of export-import of agricultural products, raw materials and food.
- Import restriction or ban on the import of tobacco and alcohol products from the United States.
- A restriction on imports or a ban on the import from the United States of medicines having Russian counterparts.
- Prohibition of state and municipal procurement of technological equipment and software.
- Termination of US Trademark Protection
- Prohibition of labor immigration of qualified specialists from the USA.
- Increased fees for flying over the airspace of the Russian Federation.
- Termination of cooperation with the United States and American companies in the field of nuclear industry, aircraft manufacturing, rocket and propulsion industry, consulting, audit and legal services. Moreover, Russia and Russian companies will cease to cooperate not only with American companies, but also with all organizations whose capital is more than 25%, one way or another, belongs to the United States.
- American companies and all companies whose capital is more than 25% of American capital are prohibited from participating in the sale and privatization of federal property of the Russian Federation.
- The list of goods and services that are subject to restrictions may very well expand.
- Perhaps a list of individuals from among US citizens who will be prohibited from staying on the territory of the Russian state will be compiled.
And although the President of the Russian Federation will take the decision to introduce specific measures from the above list, some of the sanctions will still be introduced.
The deadline for preparing the bill for consideration in the first reading is tentatively scheduled for May 2018. According to some experts, the deputies will not rush to adopt this bill.
Prohibitions and restrictions on the import of sanctioned goods will not apply to private citizens of the Russian Federation, provided that they are purchased for personal use.
Expert Comments
Regarding the ban on the import of alcohol and tobacco products from the United States, many experts agree that only wealthy Russians who can afford American wine and whiskey, costing at least $ 10 per bottle, will suffer.
The ban on cooperation in the field of aircraft building and the rocket and engine industry will hurt the domestic VSMPO-Avisma and the American Boeing. It is no secret that American Boeings are built entirely from Russian titanium, which is supplied by VSMPO-Avisma concern. It will be difficult for a domestic producer to find such a large buyer for titanium, and for Boeing to find a source of the same cheap and necessary titanium.
Restrictions and bans on trade in agricultural products, raw materials, food, technological equipment will hit the Russian economy, because this category of goods represents the basis of Russian supplies to the United States and Russian purchases from this country.
The ban on attracting US labor migrants will mean that 92, 400 Americans registered with the Russian Federation and who have come to work will be forced to leave. And these are, for the most part, highly qualified specialists.
The termination of legal protection of trademarks owned by Americans will mean that it will be possible to produce any goods under the American logos on the territory of the Russian Federation without the permission of the Americans themselves. For example, it will be possible to produce gadgets under the brand name iPhone without taking into account the views of Apple.