World Economy

Russia May Curb Petrochem, Eng. Products From US, EU

Russia May Curb Petrochem, Eng. Products From US, EURussia May Curb Petrochem, Eng. Products From US, EU

In retaliation for the latest package of US and EU sanctions Russia may complement the ban on used cars with restrictions on petrochemical and engineering products, Economic Development Minister Aleksey Ulyukayev told the media.

He recalled that when Russia introduced the first package of retaliatory measures in the field of food security, it reserved the possibility of retaliatory measures in other areas, first and foremost, in industrial production: “motor vehicles and other equipment – compressors and refrigerators.”

“In other words, a large amount of engineering products, and also petrochemical industry items, may be included in our mechanism of protective measures,” Ulyukayev said, adding that no final decision had been made yet.

“It requires further consideration, but our proposals are ready,” he said.

On Friday morning the European Union in its official journal published the details of new sanctions effective from September 12. The period of lending to Russia’s largest banks has been reduced from 90 days to 30. The same restriction now applies to Rosneft, Transneft, Gazprom neft Uralvagonzavod, Oboronprom and the United Aircraft-building Corporation. The European Union put 24 more names on the black list for Russia and Ukraine taking the total number of officials to 119.

A short while later the United States declared its own new sanctions. Russia’s state-run bank Sberbank was added to the sanction list. Also, sanctions have been tightened against the Bank of Moscow, Gazprombank, Rosselkhozbank, Vneshekonombank and VTB. For all banks the period of borrowing has been reduced to 30 days from 90.