Russia proposes tough counter-sanctions to recent US action

A draft bill has been introduced into the Russian parliament that could block business by certain non-Russian companies in the country (13 April).

Draft Bill No 441399-7 ‘On Measures (Countermeasures) in Response to Unfriendly Actions of the USA and (or) other Foreign States’ contains a range of potentially hard-hitting measures. These include a ban on the import into Russia of agricultural products, raw materials and food products – as well as alcohol and tobacco – from the US and/or ‘foreign states’.

In a client briefing, lawyers from Baker & McKenzie note that other proposed measures include visa bans, travel restrictions and a ban on entities with more than 25% ownership in the US or ‘foreign states’ in certain sectors from dealings in Russia. Targeted industries include consulting, auditing and legal services, those participating in privatisations, or providing services over the sale of public real estate. Co-operation in the aircraft, rocket and atomic energy industries would be terminated.

According to the draft bill, ‘foreign states’ are those standing with the US on its recent economic sectoral sanctions against Russia and on the targeting of specific Russian entities and individuals. It is likely that the broad scope of the bill will be refined through presidential decrees. The draft bill is due to be considered in the Duma on 24 April.