Unforeseen by-product of Western sanctions: Russia to ban foreign trade of certain commodities & raw materials

The list of products and states that fall under restrictions will be revealed in two days

© Getty Images / takenobu

Russia is banning the exports of certain commodities and raw materials, according to a decree signed by President Vladimir Putin on Tuesday evening. The new economic measures are aimed at ensuring Russia’s security amid Ukraine-related sanctions.

The measures include “a ban on exports outside of the Russian Federation’s territory and (or) imports to the Russian Federation’s territory of products and (or) raw materials according to lists determined by the Russian government.” The ban will be effective until December 31, 2022.

The actual products that fall under the restrictions, as well as countries and entities subject to the new measures, have not yet been revealed, as the President gave the government two days to determine the specifics.

The ban will not affect products exported or imported for personal use; the presidential order stated.READ MORE: China reveals new burden for world economy

The decree came mere hours after US President Joe Biden said that Washington would ban imports of Russian oil, while the EU announced it would aim to cut imports of natural gas from the country by two-thirds this year. The UK also announced similar restrictions.

Russia is the third-largest oil producer in the world and the biggest exporter of natural gas. Oil prices jumped after the Moscow’s announcement, with international benchmark Brent rising on top of earlier gains to trade 5.9% higher at $130.50 a barrel late on Tuesday. It lost some of the gains on Wednesday but was still trading in the green at $128.97 per barrel around 08:00 GMT.

Russia is also the globe’s major supplier of grains, as well as metals such as aluminum, nickel and palladium. A ban on exports is expected to increase prices for commodities, which are already trading at multi-year highs.

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