New Russian Law Tightens Secrecy Around Defence Orders to Avoid US, EU Sanctions

  • Our Bureau
  • 11:21 AM, April 17, 2020
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New Russian Law Tightens Secrecy Around Defence Orders to Avoid US, EU Sanctions
Russia sanctions illustration

The State Duma of the Russian Federation has recently adopted a law that limits the circle of persons who may possess information about state defense orders.

The explanatory note states that the adoption of the bill is necessary to limit the circle of people who have information about the implementation of state defense order in the context of sanctions against Russia, the Russian MoD’s news channel, tvzvezda.ru reported.

The law implies that customers and executors of public defense contracts will not be required to post information on work related to it in a single information system in the procurement of goods, work, and services to meet state and municipal needs.

The information restriction will relate to work on modernization, development, supply, repair and disposal of military and special equipment. There is also a restriction on orders in the areas of development, production and supply of space technology and space infrastructure facilities.

While almost all major defence manufacturers such as United Aircraft Corporation and Rostec are under sanctions, a good number of smaller and lesser known firms as well as individuals who represent them are not in the sanctions list.

New Russian Law Tightens Secrecy Around Defence Orders to Avoid US, EU Sanctions
Russian President Putin with Turkey's Erdogan: Beating sanctions

Over the past 5 years, the US has regularly expanded the sanctions list to include an increasing number of Russian industry sectors, firms and individuals. Halting information about defence contracts would prevent the US/EU from accessing data about entities who could potentially be sanctioned.

According to the US Congressional Research Service’s latest update on the Russia sanctions policy, the US has imposed sanctions on Russia in response to its invasion of Ukraine, election interference, other malicious cyber activities, human rights abuses, use of a chemical weapon, weapons proliferation, illicit trade with North Korea, and support to Syria and Venezuela.

Sanctions against Russian persons (defined to include individuals, entities, vessels, and aircraft) may include blocking of assets subject to US jurisdiction; limits on access to the US financial system; and denial of entry into the United States. The United States also tightly controls exports to Russia’s defense and energy sectors, the report said.

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