Law on Russian Economic Countermeasures

On 30 May 2018, the Federation Council (upper chamber of the Russian Parliament) approved the Federal Law “On Measures (Countermeasures) in Response to Unfriendly Actions of the USA and (or) other Foreign States” (the “Law on Countersanctions”). The Law on Countersanctions was approved in the version adopted by the State Duma in the third and final reading on 22 May 2018.

The Law on Countersanctions will be passed to President Putin not later than on 4 June 2018. Once received, President Putin will have to sign the Law on Countersanctions (or refuse to sign it, which is unlikely) within 14 days. The signed Law on Countersanctions is required to be formally published within 7 days from the date of its signing.

The Law on Countersanctions will come into force on the date of its publication. Initially, it was expected that it would become effective early in July 2018. However, given the latest developments, it seems that the Law on Countersanctions will be signed by President Putin and will come into force by the end of June 2018, at the latest.

After the Law on Countersanctions comes into force, it will be up to the Russian President and Government to decide which particular counter-measures (if any) and against what countries will be introduced. The Law on Countersanctions contains no deadline for such a decision, leaving the matter entirely at the discretion of the executive power.