Yermak-McFaul Working Group on Russian Sanctions. Progress Update #7, July 6 compared to Apr 19
Action Plan on Strengthening Sanctions against the Russian Federation, April 19, 2022
Prepared by KSE Institute
Announced by the USA, UK, Canada and Japan, a ban on import of Russian gold was the most noticeable sanction of the week. It is estimated to cost RF ~$19 bn per year, yet conditions of imposed embargo will determine the size of the real effects of the RF economy.
Switzerland continued adoption of the 6th EU package.The US set 35% tariffs for 570 categories of RF’ goods.
Belarus regained the attention of sanctions’ authorities back — the UK and Canada extended financial and trade sanctions on Belarus.
Important changes from previous monitoring date (June 24):
#Financial: UK, US, Canada & Japan announced a ban on the import of Russian gold. So far only the USA has published official documents prohibiting import of gold of Russian origin. However, the US ban excludes gold that has been incorporated or substantially transformed into a foreign-made product. Also, determination excludes gold of Russian origin that was located outside of Russia prior to June 28, 2022. Japan MinFin imposed an embargo on the purchase of Russian gold, but details will become available later. While the UK extended existing restrictions on Belarus on dealing with financial instruments and providing loans to a broader range of transferable securities, money market instruments, loans and credit, as well as, prohibited provision of financial services for the purpose of foreign exchange reserve and asset management of CB Belarus and Belarus MinFin.
#Trade: USA imposed 35% import tariff for 570 categories of RF products worth approximately $2.3 bn. Canada banned export for Belarus on products that could be used in the production and manufacturing of weapons, export and import ban on Belarus on luxury goods.
#Secondary: USA for the first time sanctioned 7 RF entities and 6 non-RF entities for evading newly imposed export controls on Russia, these companies provided support to Russia’s military and/or defence industrial base.
#Transparency: To strengthen trade controls, USA released warning of increased export control evasion attempts by entities targeted under RF related programs (includes 16 items with a higher risk of evasion attempts. While the European Council has requested the European Parliament’s consent to add the violation of sanctions to the list of ‘EU crimes’.
Progress from previous monitoring date (June 24):
#Oil: Lithuania banned transit of RF gas to the Kaliningrad region. While Switzerland continued adoption of the 6th EU package by banning RF crude oil and petroleum products and banned services, including insurance or reinsurance, for transportation of RF oil and certain petroleum products to any destination (#Transport)
#Individual: USA, UK, Australia, Japan and Canada adopted new individual sanctions.
#SOE: EU and Switzerland continue sanctioning SOE media channels by prohibiting their broadcasting.
#Reconstruction: On July 6, Ursula von der Leyen stated that the EU considers it fair and is preparing a legal basis for the frozen RF assets and assets of RF oligarchs.