US Export Restrictions Expand – Russia Responds with Import Bans
On July 29, 2014, The U.S. Commerce Department advised that it is further restricting trade with Russia in response to Russia’s continued actions supporting separatists in Ukraine.
BIS will institute a policy denying export, reexport or foreign transfer of certain items for use in Russia’s energy sector that may be used for exploration or production from deepwater, Arctic offshore, or shale projects that have the potential to produce oil. While these sanctions do not target or interfere with the current supply of energy from Russia or prevent Russian companies from selling oil and gas to any country, they make it difficult for Russia to develop long-term, technically challenging future projects.
In addition, BIS (Bureau of Industry & Security) added another Russian company – OJSC United Shipbuilding Corporation – to the Entity List.
Designation on the Entity List imposes a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations to the designated entities, with a presumption of denial.
To read more: BIS
In Response, Russia advised of Its Own Import Bans [from New York Times]. Russia is now banning food an agriculture imports from the United States and Europe. The Russia Prime Minister said:
..that Russia would ban all beef, pork, fish, fruit, vegetables and dairy products from the European Union, the United States, Canada, Australia and Norway for one year.
From WSJ:
The prime minister also announced a ban on Ukrainian flights transiting through Russian airspace, and warned that Russia could issue a similar ban on U.S. and European planes. Many American and European carriers fly over Siberia to reach destinations in Asia.
Contact Superior Freight Services, Inc. at 800.298.4305 or superior@supfrt.com if you have any export questions.
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