Russia Sets Out to Sanction Western Sanctions

Just as investment banks are cutting their growth forecasts for Russia because of a growing likelihood of new U.S. sanctions, Russian legislators are looking for a strong response. A proposal that could make it illegal to obey the penalties received preliminary approval from the the parliament’s lower chamber on Tuesday. It may not be Moscow’s final word, but it shows the Russian political elite is leaning toward deeper self-isolation.

The bill, sponsored by the speakers of both chambers of parliament and the leaders of all parliamentary factions, proposes a sentence of up to four years in prison for applying any foreign sanctions in a way that restricts the ability of Russian citizens or entities to perform “ordinary economic operations or deals.” The U.S. and its allies initially imposed sanctions on Russia in response to its aggression against Ukraine in 2014. At first, the penalties focused on travel bans and asset freezes, but they were gradually strengthened to restrict borrowing and access to U.S. technology for state-controlled companies and to make it impossible for some businesses deemed close to the Kremlin to trade with the U.S. More Russian companies could be hit in another round of sanctions.