Russia extends economic sanctions against Turkey (30 Dec 2015)
Russia: Economic Sanctions on Turkey (31 Dec 2015)
On Saturday, 28 November 2015, the Russian President signed Decree No. 583 on special economic measures against Turkey. The Decree was followed by the Russian Government Resolution No. 1296 published on 1 December 2015.
The Decree and the Resolution impose the following sanctions and restrictions against the Republic of Turkey.
1. Imports of goods and works/services
A ban and restrictions to apply on importation of certain goods of Turkish origin to Russia as well as on performance in Russia of certain works/services by organizations under jurisdiction of the Republic of Turkey. The Russian Government is to issue lists of banned goods and works/services as well as a list of contracts with organizations under jurisdiction of the Republic of Turkey which are excluded from the ban.
So far only the list of banned goods (in effect from 1 January 2016) has been issued; it includes various agricultural products (chicken and turkey meat by-products, certain vegetables and fruits). The two other lists (on banned works/services and excluded contracts) are expected after 10 December 2015.
From 1 January 2016 employers under Russian jurisdiction are banned from employing Turkish nationals in Russia. The Russian Government is to issue a list of employers that are excluded from this ban. Employment that is in effect on 31 December 2015 is not affected by sanctions and qualifies for renewal/prolongation (within usual employment/working permits quotas).
Travel operators and agencies are to abstain from selling to Russian citizens tours to Turkey.
4. Air transportation
A ban on charter flights between Russia and Turkey is introduced from 1 December 2015 (save for flights bringing Russian tourists back home). The Ministry of Transport is to undertake additional measures to guarantee aviation safety for regular flights.
5. Sea transportation
Safety control in Russian waters and seaports in the Azov-Black-Sea basin to be tightened.
6. Road transportation
For the year 2016, Russian permits for international road transportation are to be reduced (down to 2000), and the Ministry of Transport is authorized to annul those that have been issued.
7. Visa regime
From 1 January 2016 for Turkish citizens travelling to Russia the visa-free regime is suspended (Turkish citizens with Russian residence permits or diplomatic passports are not affected).
8. Economic Cooperation
Suspended with immediate effect are activities of the Russian-Turkish Intergovernmental Commission on Trade and Economic Cooperation (formed in 1992). Further suspended are negotiation and drafting process for the bilateral Agreement on Trade in Services and Investments and the Middle-term program for economic, trade, scientific, technical and cultural cooperation for 2016-2019; and formation of the joint Fund for Financing Investment Projects in Russia and Turkey.
The Decree and the Resolution came into effect immediately. The sanctions will apply until they are abolished by presidential decree. White & Case is actively monitoring developments.
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