Russian President Vladimir Putin signed a decree yesterday announcing new retaliatory economic measures in response to “unfriendly actions” taken by countries, international organizations and individuals. The Russian government has ten days to specify those new measures, but they are expected to be severe, and could include stopping exports of raw materials, canceling foreign deals, etc. Russia may be about to enter a whole new stage of a war economy.
TASS reported that the official decree states it is “due to unfriendly actions which contradict international law by the United States of America and foreign states and international organizations that joined them, directed at illegitimately depriving the Russian Federation, the citizens of the Russian Federation and Russian legal entities of [their] property right and restricting their property right.” TASS added that “the document published on the official portal of legal information prohibits fulfilling obligations and concluding deals with foreign individuals and legal entities under the retaliatory restrictive measures as well as exporting raw materials and products from Russia in the interests of these individuals,” and that “these measures are taken in order to protect Russia’s national interests.”
There is already hysteria in the international media about what this could mean. Reuters headlined its report: “Putin Puts West on Notice: Moscow Can Terminate Exports and Deals.” They describe the measures as “the Kremlin’s toughest response yet to the sanctions burden imposed by the United States and allies … which forbade the export of products and raw materials to people and entities on a sanctions list that he instructed the government to draw up within 10 days.”
Newsweek said “the move could pave the way to Moscow causing ructions across markets by suddenly terminating exports and deals.… The wording of the announcement on Tuesday points to the Kremlin’s determination to avenge the tough sanctions that have been imposed on Russia by the West since Vladimir Putin’s invasion of Ukraine on February 24.” Newsweek noted that even existing contracts can be canceled, and that this could end up really kicking over the global economic chessboard.
