Overview

On 6 August 2014 the President of the Russian Federation signed Decree No. 560 “On Application of Certain Special Economic Measures for ensuring the Security of the Russian Federation” (the Decree) which was further supplemented on 7 August 2014 with a resolution by the Government of the Russian Federation “On Measures on the Implementation of the Decree (theResolution). The Decree and the Resolution introduce a prohibition on the importation into the Russian Federation of certain agricultural products, raw materials and food (Food Products) which originate from countries which have imposed sanctions on Russian legal and/or natural persons (theProhibition).

The Decree came into force on 6 August 2014 (the date of its signing) and the Resolution came into force on 7 August 2014 (the date of its official publication).

We attach English translations of the Decree and the Resolution for your reference.

The scope of the Decree and the Resolution cover the following.

1. Countries of origin of Food Products where the importation of such into the Russian Federation is prohibited:

  1. the United States of America
  2. EU Member States
  3. Canada
  4. Australia
  5. Norway

2. Russian parties which are prohibited from carrying out any foreign trade operations in relation to the importation of Food Products originating from the countries mentioned in item (1) above:

  1. legal entities incorporated under the laws of the Russian Federation;
  2. legal entities and natural persons which are subject to the jurisdiction of the Russian Federation (these include the subsidiaries of foreign entities based in Russia); and
  3. public authorities of the Russian Federation, federal state bodies and local self-government authorities

3. A list of the Food Products subject to the Prohibition

The list of Food Products subject to the Prohibition is attached to the Resolution and contains, among others, fresh and chilled meat, fish, vegetables, milk and milk products, cheese, sausages, vegetables, fruits and nuts.

The Resolution explicitly excludes any articles which are to be used as infant food from the above mentioned list.

4. The term of the Prohibition

The Resolution and Decree indicate that the Prohibition will be in force for a term of one year, however, the Decree mentions that the Government may change the term of the Prohibition.

5. Responsibility for a breach of the Prohibition

Neither the Decree nor the Resolution state the liability for a legal entity trying to import Food Products into the Russian Federation. Although it is not clear, the likelihood is that in such a case a legal entity will bear responsibility in accordance with the Russian administrative and customs legislation which provides for fines in amount from RUR100,000 (approx. EUR2,083) to RUR300,000 (approx. EUR6,250) for the importation onto the territory of the Russian Federation of products subject to prohibition and/or restrictions.

However, it remains to be seen what type of legal sanctions will be actually applied in these cases by the Russian authorities and courts.

Decree of the President of the Russian Federation No. 560 dated 6 August 2014 on Application of Certain Special Economic Measures for ensuring Security of the Russian Federation

For the purpose of protecting of the national interests of the Russian Federation under Federal Laws No. 281-FZ dated 30 December 2006 “On Special Economic Measures” and No. 390-FZ dated 28 December 2010 “On Security” I hereby resolve:

1. The public authorities of the Russian Federation, federal state bodies, local self-government authorities, legal entities incorporated under the laws of the Russian Federation, organisations and natural persons which are subject to the jurisdiction of the Russian Federation in their activity shall proceed on the basis that within one year the date when Decree comes into force the performance of foreign trade operations involving import to the Russian Federation of certain types of agricultural products, raw materials and food, the country of origin of which is the state, which has imposed economic sanctions against the Russian legal and/or natural persons or acceded the decision on imposal of such decision shall be prohibited or restricted.

2. The Government of the Russian Federation shall:

  1. determine the list of agricultural products, raw materials and food referred in clause 1 hereof and provide for the possibility to amend it subject to the provisions of subclause (c) of this clause;  
  2. determine the list of specific actions required to implement this Decree;
  3. take measures for ensuring the balance of the commodity markets and preventing swift growth of prices for agricultural products and food;
  4. arrange operational commodity markets monitoring and control over their condition together with the supreme executive bodies of the subjects of the Russian Federation;
  5. ensure the development and implementation of the package plan for increasing the supply of domestic goods together with associations of manufacturers of the goods, trade networks and organisations;
  6. ensure within its competence performance of other actions required to implement this Decree;
  7. introduce proposals (if necessary) on change of the term of prohibition provided in clause 1 hereof.

3. This Decree shall take effect on the date of its execution.

Vladimir Putin, August 6, 2014, Moscow

Resolution of the Government of the Russian Federation No. 778 dated 7 August 2014

On measures of implemention of Decree of the President of the Russian Federation No. 560 dated 6 August 2014 “On Application of Certain Special Economic Measures for ensuring Security of the Russian Federation”.

In pursuance of Decree of the President of the Russian Federation No. 560 dated 6 August 2014 “On Application of Certain Special Economic Measures for ensuring Security of the Russian Federation” the Government of the Russian Federation resolves:

  1. To prohibit for one year import to the Russian Federation of agricultural products, raw materials and food, the countries of origin of which are the United States of America, EU states, Canada, Australia and the Kingdom of Norway according to the list set out in the annex.
  2. The Federal Customs Service shall ensure control over compliance with clause 1 hereof.
  3. The Government Commission for Monitoring and Rapid Reply to Changes in Food Markets together with the supreme executive bodies of the public authorities of the subjects of the Russian Federation shall ensure balance of the commodity markets and prevent swift growth of prices for agricultural products and food.
  4. The Ministry of Industry and Trade of the Russian Federation and the Ministry of Agriculture of the Russian Federation together with the supreme executive bodies of the subjects of the Russian Federation shall arrange day to day operative monitoring and control over the condition of the respective market of agricultural products, raw materials and food.
  5. The Ministry of Agriculture of the Russian Federation together with the interested federal executive bodies and with participation of the associations of the manufacturers of agricultural products, raw materials and food shall develop and implement a package plan for increasing supply of agricultural products, raw materials and food for the purpose to prevent growth of prices.
  6. The Ministry of Industry and Trade of the Russian Federation, the Ministry of Agriculture of the Russian Federation, the Ministry of Economic Development of the Russian Federation and the Federal Antimonopoly Service together with association of trade chains and trade organisations shall ensure coordination of the activity for the purpose to keep prices down.
  7. This Resolution shall take effect at the date of official publishing hereof.

Chairman of the Government of the Russian Federation

D. Medvedev

List1 of agricultural products, raw materials and food, the countries of origin of which are the United States of America, EU states, Canada, Australia and the Kingdom of Norway and the import of which to the Russian Federation shall be prohibited for one year

  • Cattle meat fresh or chilled
  • Cattle meat frozen
  • Porkmeat chilled or frozen
  • Meat and by-products of poultry, fresh, chilled or frozen
  • Meat salted, in brine, dried or smoked
  • Fish and shell fish, clam and other types of aquatic invertebrates
  • Milk and milk products
  • Vegetables, edible roots and tuberous roots
  • Fruits and nuts
  • Sausages and similar products of meat, by-products or blood, finished food made on the basis thereof
  • Finished products including cheese and cottage cheese on the basis of vegetable fat
  • Foodstuffs (products containing milk, on the basis of vegetable fat)