On Tuesday, Russian President Vladimir Putin notified the West that he would cease exports and contracts. This was the Kremlin’s most severe response to the US and its allies’ sanctions on Russia for their invasion of Ukraine.
Putin, Russia’s supreme leader since 1999 signed Tuesday a broad decree prohibiting the export of raw materials and products to individuals and entities listed on a list of sanctions he ordered the government to create within 10 days.
- Putin starts Russia’s biteback on Ukraine sanctions
- Has broad powers to cut raw materials and produce exports
- Transactions with sanctioned entities are prohibited
- Markets could be thrown into chaos by retaliatory actions
- It will now matter who will be on the sanctions lists.
Moscow has the power to cause chaos on the markets by publishing this decree. It can stop exports and terminate contracts with any entity or person it approves.
The Russian government has ten days to create lists of people it will sanction, beyond those who are Western politicians.
Putin specifically framed the decree to respond to the “illegal actions of the United States, its allies” meant to deprive the Russian Federation, citizens and Russian legal entities of their property rights or restrict them.
The decree provides “retaliatory economic special measures in connection to the unfriendly acts of certain foreign states or international organisations”
