Russians from buying products sanctions from the Union

The Russian government banned the trade of certain goods imported from partner countries in the EEU. For the Russians it could mean a ban on the purchase of so-called sanctions products

The government will have the right to prohibit the turnover of goods coming from other member countries of the Eurasian economic Union (EEU unites Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan). The relevant draft law prepared by the Ministry of Finance; Monday, February 13, it was approved by the government Commission on legislative activities, said the RBC meeting and confirmed by the press service of the Ministry of Finance. The government has announced the approval of the document by the Commission.

Under the ban can get the goods that are imported to the allied countries of Russia from third countries according to rules different from those specified in the EEU and Russia, follows from the bill (there RBC). It is, in particular, on the goods in respect of which in other EEU countries are low import duties or their importers are not provided for in the EEU benefits. In addition, the government can prohibit the circulation of goods, imported to Russia from third countries is prohibited or restricted, and “other categories of goods, defined by decrees of the President of Russia,” said the bill.

The purpose of the document is a ban on the sale of goods from countries the world trade organization (WTO), imported to Russia through the territory of allies in the EEU, primarily through Kazakhstan, as well as sanctions of goods, told RBC Federal official. Now trading conditions in Russia (membership in WTO, sanctions and counter-sanctions, restrictions against Ukraine and Turkey) are not consistent with the trading conditions of other countries of the EEU, and it’s wrong, says RBC Director of the research center of international trade Ranhigs Alexander Knobel. The discrepancy between the rules on the importation from third countries within the Customs Union sooner or later must be eliminated, he explains.

A ban on the turnover of these goods will help to “provide a unified throughout its territory the conditions of circulation of goods, regardless of the economic entities of the means of their delivery”, confirms the explanatory note to the bill. According to the authors, the bill is consistent with the Treaty on establishing the EAEC. As the bill is consistent with this agreement provided a guarantee on the freedom of movement of goods inside the EAEU, the authors of the document don’t explain. RBC appealed for review to the Eurasian economic Commission (EEC), but received no reply at time of publication.

What’s wrong with Kazakhstan

Kazakhstan was forced to cut import duties on a large number of goods after joining the WTO in late 2015. Average rate of customs tariff for Kazakhstan has decreased to 6.5% compared to 10.4% in the EEU. In 2017 reduced in comparison with the common customs tariff of the EAEU duties operating in Kazakhstan in respect of goods 1914, said in an interview with “Kommersant” the Minister of trade ECE Veronika Nikishina. Such duties imported about a third of the volume of goods that come to Kazakhstan from China — namely the Chinese products generally, and to touch the bill of the Ministry of Finance, said Knobel. In particular, low import duties levied on fish and products of animal origin, dairy and pharmaceutical products, agricultural products, equipment, and vehicles. Rest of the EAEU feared knowingly re-export of cheaper goods on its territory and Kazakhstan promised not to allow this: entrepreneurs who are planning to export these goods to other countries of the Union are obliged to pay for them at the rates adopted in the EEU. But due to the lack of customs control on the border products at reduced rates are still imported to Russia, told “Vedomosti” in December of 2016.

“All anything, but in the absence of customs borders to administer these distinctions technically becomes more difficult. And in fact, this bill is a formalization of the desire of the Russian authorities to monitor and properly manage these differences,” — says Knobel. Now in the EAEU there is agreement that the goods imported in the same Kazakhstan reduced customs duties, are subject to a surcharge, which goes to the budget of the Union, he recalls. The bill of the Ministry of Finance will give the government the opportunity to cut the flow of those goods which have not been similar procedures, though it’s supposed to.

Russian officials repeatedly complained and the re-export of goods from Belarus. The claims were generally related to the re-export of products of sanctions. In September 2016, the Deputy Prosecutor General of Russia Vladimir Malinovsky has noticed that in 2015, Belarus has imported to Russia five times more apples than raised (apples sanctionnee included in the list of Russian officials suspected that under the guise of Belarus in Russia imported European). Later similarly “famous” shrimp, pineapple and other exotic for Belarus products. In December 2016, in an interview with RBC head of the Rosselkhoznadzor Sergey Dankvert said that the Belarusian providers often behave “unfair” and “I want to take advantage of the situation when the Russian market closed for deliveries from the EU, from the Ukraine.”

Who does not go shall not eat

According to the decree of President Vladimir Putin on 6 August 2014, Russia banned only the import of foodstuffs from countries that introduced anti-Russian sanctions, the United States, Canada, Australia, EU countries. But the turnover of sanctions goods on the territory of Russia the decree is not formally prohibited. Power is not the first time pay attention to this: on 1 February the CPS had published for public comment a bill on fines from 3 thousand to 100 thousand rubles for the storage, transportation and sale of sanctioned goods to Russia. The punishment does not threaten the Russians, who import up to 5 kg of banned products for personal use, assured then in the CPS.

The bill of the Ministry of Finance retains the right of citizens to import sanctioned products to Russia, but involves the introduction of a ban on the purchase of such products inside the country. However, the content of the prohibitions, the government will determine in each case separately, said the Federal official.

In this issue, fundamental changes will not be assured Knobel. If Belarusian goods are now having signs imported from third countries, prohibits the Rosselkhoznadzor, justifying this non-compliance with sanitary requirements, will now act in a more fair scheme: products (in the presence of risks that they import from other States) in its decision to disallow government.

Featuring Anna Mogilev

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