Russia draws up draft of sanction exemption rules for Turkish companies

Nerdun Hacıoğlu - MOSCOW

REUTERS photo

Russia’s Economic Development Ministry has drawn up a draft of sanction exemption rules for Turkish companies, following requests from large Russian companies. 

The draft regulations comprise of rules for contracts signed with companies under Turkish jurisdiction and companies controlled by Turkish citizens that will be exempted from sanctions recently introduced by Moscow. Bilateral relations between Ankara and Moscow have nosedived since Turkey shot down a Russian jet for air space violations on the border with Syria on Nov. 24, 2015. 

According to the draft posted on Jan. 14, contracts may be exempted from sanctions if failure to execute them “affects the discharge of the domestic or foreign commitments of Russia or Russian companies,” the TASS News Agency reported.

Exemptions will also apply to contracts affecting the interests of Russia’s security, or contracts affecting a wide range of consumers, or if it is not possible to make a replacement, or if it could result in significant complications in implementation of Russia’s economic, technical, financial and innovation programs.

All contracts will be screened by the government sub-commission under the Russian Economic Development Ministry, and any decision to exempt the contract from sanctions will be made by a government resolution.

Several big companies have already requested that the Economic Development Ministry include them in the list of exemptions from anti-Turkey sanctions, Deputy Economy Minister Alexey Likhachyov said on Jan. 13. 

“Many Russian companies are applying, including Sberbank, with the request of a possible exclusion from the Russian counter-measures,” Likhachyov said, as quoted by TASS. 

Russian officials have warned about a further deterioration in the country’s economic conditions amid the oil price plunge and continued Western sanctions against Moscow. 

Speaking at an economic forum in Moscow on Jan. 13, Russian Prime Minister Dmitry Medvedev said the country needed to steel itself for tough times. 

“One needs to prepare for the worst scenario,” Medvedev said.