Balance/ing? - 'Let it snow'!
Russia introduces countermeasures against 322 Ukrainian citizens and 68 companies
Prime Minister Dmitry Medvedev signed a government decree introducing special economic measures against 322 Ukrainian citizens and 68 companies, the Government press service said on Thursday.
"Special economic measures are introduced in relation to individuals and legal entities of Ukraine, which include freezing non-cash funds, non-documentary securities and property in Russia and banning transfer of funds (withdrawal of capital) outside Russia. Sanctions will be extended to 322 individuals and 68 legal entities," the Russian government said.
The list of the sanctioned individuals includes the Ukrainian president’s son Alexei Poroshenko, Ukraine's Minister of Internal Affairs Arsen Avakov, Head of Naftogaz of Ukraine Andrei Kobolev, Head of the General Staff of the Armed Forces of Ukraine Viktor Muzhenko, Prosecutor General of Ukraine Yuriy Lutsenko, Defense Minister Stepan Poltorak, Speaker of the Verkhovna Rada Andrei Paruby, Deputy Head of the Presidential Administration Konstantin Yeliseyev, ultra-nationalists Oleg Tyagnibok and Dmitri Yarosh, ex-premier of Ukraine Arseniy Yatsenyuk, leader of the Batkivshchyna (Motherland) party Yulia Timoshenko.
These restrictions also are also being imposed on judges of the Constitutional Court of Ukraine, lawmakers of the Verkhovna Rada of Ukraine of the 8th convocation, major Ukrainian businessmen, officials of the presidential administration of Ukraine, heads of executive authorities and large Ukrainian companies, and legal entities controlled by Ukraine’s top businessmen, the statement said.
Ukraine’s chemical and mining enterprises make up the majority of the list of 68 legal entities that fell under the countersanctions. Among those are Azot, Dniproazot, Ukrhimenergo, Glikohim, Mezhdurechensk Mining and Processing Plant, United Mining-Chemical Company and its branches, and a number of other companies.
Moscow's countermeasures are aimed at countering Kiev’s unfriendly actions against Russian citizens and companies and can be lifted if Ukraine annuls its sanctions, the Russian government stated.
Thus, Russia’s countermeasures "are aimed at countering unfriendly actions against Russian citizens and legal entities from Ukraine and normalizing bilateral relations." "The Russian government reserves the right to cancel special economic measures if Ukraine abolishes its restrictive measures imposed on Russian citizens and legal entities," the government said.
Precautionary measures
The Ministry of Industry and Trade and the Ministry of Economic Development of Russia must steer Russian companies clear of any negative impact when slapping retaliatory measures against Ukraine.
"The Ministry of Industry and Trade and the Ministry of Economic Development of the Russian Federation should ensure a balance on commodity markets and prevent any negative impact from the special economic measures ... on the activities of Russian organizations," the government resolution published on the Russian government’s official website said.
According to the statement, the Russian government could issue temporary permits to authorize certain operations of companies under the restrictions.
According to the Russian Federal Customs Service, trade turnover between Russia and Ukraine in 2017 increased by 25.6% to $12.9 bln. Growth of mutual trade was observed in the first time since 2012. Thus, in 2017, Russian exports to Ukraine rose in all key product groups and imports grew in all product groups, with the exception of wood.
Russian-Ukrainian trade relations peaked in 2011, when the volume of mutual trade amounted to $50.6 bln. Since 2012, trade began to gradually decline and reached its bottom in 2016, dropping to $10.26 bln. Because of a prolonged decline in mutual trade, in 2017 Ukraine occupied only 14th place in Russia’s foreign trade. Whereas Russia, despite the sanctions introduced by Ukraine since 2014, according to the Ukrainian State Statistics Service, remains its main trading partner with a 12.4% share in foreign trade.
According to the data of the Russian Central Bank, direct investments by residents of Ukraine and Russia in each other’s economies has been on the decline since 2016. At the end of 2016, there was an inflow of direct investment to the tune of $270 mln from Ukraine to Russia. Similarly, Russian companies poured $3.4 bln into Ukraine, Ukraine’s investments in Russia amounted to $285 mln (+21%). At the same time, Russia's investments in Ukraine in the reporting period reached $3.4 bln (+10%).
Presidential decree
On October 22, Russian President Vladimir Putin signed a decree on special economic measures in response to the anti-Russian sanctions of Ukraine. The decree notes that this decision was made "in response to Ukraine’s unfriendly actions, which are contrary to the international law and imply introduction of restrictive measures against citizens and legal entities of the Russian Federation", adding that they were imposed "in order to protect national interests."
Prime Minister Medvedev clarified later, countersanctions "would not apply to Ukrainians in general," but will concern "only those Ukrainian citizens who harm the interests of the Russian Federation and take actions aimed at causing damage to Russia." The list will also include legal entities registered under the laws of Ukraine, which are in any way controlled by citizens under countersanctions.
Ukraine’s sanctions against Russia
In February 2014, Ukraine introduced sanctions against 1,228 individuals and 468 legal entities, including Russian government officials, politicians, CEOs, along with reporters, some Donbass residents, the Almaz-Antey concern, Gazprombank and Aeroflot.
In 2017, Ukraine also introduced sanctions against Russian internet and media companies, such as Mail.ru Group, Yandex, VKontakte and Odnoklassniki.
On June 21, 2018, Ukrainian President Pyotr Poroshenko signed a decree on expanding sanctions against Russian individuals and legal entities. The updated list included six political parties of Russia: United Russia, the Communist Party of the Russian Federation, the Liberal Democratic Party of Russia, the Rodina party, the Democratic Party of Russia, and the Agrarian Party of Russia. The list also includes the Central Election Commission and its head Ella Pamfilova, the Electoral Commission of Crimea and members of territorial commissions at various levels.
Kremlin says aim of Russian sanctions is to make Ukraine willing to improve relations
By imposing retaliatory sanctions on Ukraine, Moscow seeks to make Kiev show willingness to improve relations, Russian Presidential Spokesman Dmitry Peskov told reporters.
"We definitely hope that Ukraine will sooner or later show at least weak political willingness to improve relations with Russia. We don’t see it at the moment," he said, when asked whether Moscow expected retaliatory sanctions to change the Ukrainian authorities’ position.
Russia may remove retaliatory sanctions against Ukraine in case relations between the two countries improve, he added. When asked if Moscow could remove its sanctions on Kiev in case Ukraine lifted sanctions against Russia, Peskov said that it was possible. At the same time, the Russian presidential spokesman clarified conditions for the removal of Russia’s retaliatory restrictions. According to him, it may happen "if we reach a point in the near future where we start taking steps to improve ties and ease tensions in bilateral relations."
The Kremlin believes that Ukrainian President Pyotr Poroshenko’s inclusion in Russia’s sanctions lists would be beyond all reason.
"Presidents are traditionally not included in sanctions lists. It would be a move beyond all reason," the Kremlin spokesman told journalists.
On November 1, Russian Prime Minister Dmitry Medvedev signed a government order implementing a presidential decree aimed at introducing "economic restrictions following Ukraine’s unfriendly actions towards Russian individuals and companies." The document imposes restrictions on 322 Ukrainian individuals and 68 companies. The cabinet’s press service stressed that "the Russian government reserves the right to remove these special economic restrictions in case Ukraine lifts sanctions imposed on Russian citizens and entities."
The Russian presidential spokesman pointed out that the government was implementing a presidential decree. At the same time, he stressed that "these are retaliatory sanctions." "Russia did not initiate this exchange [of sanctions], our Ukrainian colleagues have been practicing it for a while this so we had to respond soon." "These are reciprocal measures that Russia had to take in response to the steps that Ukraine had taken," he noted. Peskov reiterated that "Russia did not initiate this kind of exchange of restrictions, Ukraine had imposed sanctions on a number of our companies and individuals. From the very beginning, we pointed out that reciprocal steps were inevitable," he added.
US Envoy to EU Voices 'Blatant Threat' to Nord Stream 2 – Report
Washington has been putting external pressure on EU states over the Russian-European Nord Stream 2 project and repeatedly threatened to impose sanctions on the involved entities. The US cites security and energy independence reasons, while promoting more expensive US LNG.
US Ambassador to Brussels Gordon Sondland voiced a “blatant threat” to the Russian-European venture Nord Stream 2, which is expected to deliver gas directly to Germany across the Baltic Sea. Der Spiegel reports that the diplomat promised a “pushback against any energy projects that conflict with US interests” by diplomatic means or “stronger measures.”
The newly-appointed US envoy has confronted the Germans on a number of issues during his first informal meeting with officials from the EU countries. The outlet cites a document released by the German mission in Brussels, which summed up this encounter. Despite his friendly tone, Sondland is said to remain "tough on the matter and true to the Trump administration's confrontational approach towards points of friction."
The United States has made a number of attempts to impede the implementation of the Nord Stream 2 project, slamming Germany’s dependence on Russian fuel. Washington has even incorporated a provision for counteracting the construction of the pipeline with possible sanctions. Meanwhile, some experts point out that the US aspires to boost its liquefied natural gas exports to the European Union and Ukraine, which may suffer transit revenue drops if Nord Stream 2 becomes operational, as well as a 2-3 percent GDP loss.
However, Gordon reportedly denied that his position could have anything to do with Washington’s wish to sell more liquefied natural gas (LNG) to Europe. Nevertheless, he was “pleased” about the newly-announced plans of the German government to fund the construction of an LNG terminal in Germany.
Der Spiegel’s report has prompted irritation among German politicians, according to Der Spiegel. The head of the CDU/CSU group in the European Parliament Daniel Caspary told the outlet that the US President would like to “sell more gas, and secondly, that Russians sell less.”
A German lawmaker representing Die Linke, Andrej Hunko, has said it constitutes an “outrageous act” if the report proves to be correct. He insists that Germany mustn’t spend millions funding the terminal for the US fracking gas, which is extremely damaging for the environment.
Nord Stream 2 is a joint venture between Russia's gas giant Gazprom and five European companies. The goal of the project is to deliver 55 billion cubic meters of Russian natural gas annually directly to the European Union across the Baltic Sea.
German business expects Nord Stream 2 will be completed in time
The German business expects that the Nord Stream 2 gas pipeline project will be completed in time because this project is critical for Germany, Chairman of the German Committee on Eastern European Economic Relations Wolfgang Buchele said on Thursday at a meeting with Russian President Vladimir Putin.
"We also hope that despite all problems, the Nord Stream 2 project will be implemented in full scope and in accordance with the stated timeframe. The Nord Stream 2 is highly important because Germany will reject use of nuclear and coal energy," Buchele said. Europe needs that natural gas is delivered not only via the Nord Stream 2 but also through Ukraine, he noted. Interaction between the Russian and the German business will be improved if political relations between Russia and Germany experience changes, he added.
"Then we have a new detente process. This detente process anticipates a plenitude of participants. At the same time, Russia is a great and influential country, therefore you will not be surprised if say that we hope Russia will make a major contribution into international detente," Buchele said.
Cuban leader arrives in Russia on state visit
Cuban President of the Council of State Miguel Diaz-Canel has arrived in Russia on a three-day state visit. The Cuban leader’s aircraft has landed at Moscow’s Vnukovo-2 airport, a TASS correspondent informs.
Russian Deputy Foreign Minister Sergei Ryabkov, Cuban Ambassador to Russia Gerardo Pe·alver Portal, as well as Head of the State Protocol Department at the Russian Foreign Ministry Igor Bogdashev have welcomed Diaz-Canel at the airport. The honor guard, lined up before the aircraft, performed the Russian and Cuban national anthems.
On November 2, Russian President Vladimir Putin will hold negotiations with the Cuban leader in Moscow. The Kremlin press service reported that both leaders plan to discuss the prospects of further consolidation of Russian-Cuban strategic partnership in various spheres. They will also exchange opinions on current international and regional problems.
During his visit, Diaz-Canel will also meet with Russian Prime Minister Dmitry Medvedev, Russian Federation Council (upper house of parliament) Speaker Valentina Matviyenko and Patriarch of Moscow and All Russia Kirill.
This will be his first visit to a foreign country beyond the Caribbean.
Miguel Diaz-Canel replaced Raul Castro as President of Cuba’s Council of State and President of the Republic of Cuba in April 2018. Since 2013, Diaz-Canel had been the First Vice President of Cuba’s Council of State and the Council of Ministers, Cuba’s second-highest political position.
Russian-Cuban cooperation not tied to deteriorating relations with West, Kremlin assures
The expansion of cooperation between Russia and Cuba is not linked to rising tensions between Moscow and the West, Russian Presidential Spokesman Dmitry Peskov told reporters.
"This is unrelated to any particular thing, any Cold War or any other factors. This is an ongoing practice, a steady component of Russia’s foreign policy. We cherish good relations with Cuba," he said when asked whether Moscow’s move to bolster contacts with Havana was related to mounting tensions between Russia and the West, the so-called "New Cold War."
According to the Kremlin spokesman, "Russia has traditional and long-standing ties of friendship and cooperation with Cuba, and Russia is determined to continue these relations and do its utmost to expand (them)." Peskov pointed to "full reciprocity on the part of Cuba’s counterparts, and their mutual commitment to intensifying relations comprehensively."
Earlier reports said that President of Cuba’s Council of State and Council of Ministers, Miguel Diaz-Canel Bermudez, is kicking off his official visit to Russia on November 1. While in Moscow, the Cuban leader plans to have meetings with Russian President Vladimir Putin, Prime Minister Dmitry Medvedev, Speaker of Russia’s Federation Council (upper house of parliament) Valentina Matviyenko and Patriarch Kirill of Moscow and All Russia. Military cooperation was mentioned as an issue on the agenda.
Peskov declined to comment in detail on specific matters related to bilateral military-technical cooperation, which are expected to be discussed. "I cannot go into detail. This issue is always on the agenda of bilateral relations," he said. "I would not like to talk about any details, this is a rather sensitive area of cooperation."
Alrosa to sell 127 large gem-quality rough diamonds at an auction in Israel
Russia’s diamond mining company Alrosa will put for the auction 127 large gem-quality rough diamonds with total weight of 2,244 carats at the auction in Ramat Gan, Israel, on November 4-22, the company said in a press release.
According to the press release, at the auction the company will put special size rough diamonds (over 10.8 carats) and polished diamonds of own manufacture.
Over 100 companies from Belgium, Hong Kong, Israel, India, UAE, the US and Russia were invited to participate in the auction.
"The upcoming auction will be the last one planned by Alrosa in Israel this year, and we hope that, as in previous cases, our products will be in high demand among participants," Evgeny Agureev, the member of the Executive committee, Director of the USO Alrosa, said as quoted by the press release.
The results of the auction will be announced on November 26.
Alrosa is engaged in the exploration, extraction, production and sale of diamonds. It produces diamonds in the Republic of Sakha (Yakutia) and the Arkhangelsk region.
The shareholders of Alrosa are currently the Russian Federation - 33.02%, the Republic of Sakha (Yakutia) - 25%, districts of Yakutia - 8%, while 34% of shares are in free float.
USO Alrosa is the Unified Sales Organization of Alrosa, which sorts, evaluates and sells diamonds mined at Alrosa enterprises.
Putin looks forward to development of business ties with Germany
Russian President Vladimir Putin looks forward to the further development of business ties with Germany despite global political and economic tensions, as he himself said at a meeting with representatives of German business circles in the Kremlin.
He pointed out that bilateral trade had grown by 23% in 2017, reaching $50 bln, and the upward trend remained in 2018. "We highly value German business circles’ readiness for cooperation, pragmatism and constructive approach. We hope that business ties between our countries will continue to develop despite global political and economic tensions," the Russian president said.
He added that investment and trade cooperation between the two countries not only was beneficial for both Russia and Germany but also helped strengthen bilateral relations.
Putin pointed out that it was the third meeting of the kind, while regular direct contacts had great practical importance, as Germany was one of Russia’s biggest economic partners. According to Putin, German investments in various sectors of the Russian economy exceeded $20 bln, while Russia had invested $9 bln in the German economy. About 5,000 companies with German participation work in Russia, whose overall revenues reach $50 bln.
"Cooperation goes on in the construction and renovation of industrial facilities. Cars, trains, electric equipment and agricultural machines are manufactured based on cutting-edge German technologies," Putin said. He noted that one-third of Germany’s oil and gas requirements were met through Russian oil and gas supplies. The two countries had implemented many important energy projects in the previous years, Putin noted, adding "and now, the Nord Stream 2 gas pipeline is being constructed.".
