Russian Presidential Decree No.560 Dated 6 August and resolution of the Government of the Russian Federation No.778 dated 7 August 2014
In response to the imposition of trade and financial sanctions against Russia by the USA, member states of the European Union, Canada, Norway and Australia, Russia has introduced, with effect from 7 August 2014, a one-year ban on the import into Russia of certain agricultural and food products originating from those countries. There are no grace periods enabling performance of pre-existing contractual obligations.
The affected products are defined according to classification codes used in Russia for customs clearance purposes, and based on the internationally accepted “Harmonized Commodity Description and Coding System”, “HS”. The relevant products include a broad range of food and agricultural products, including meat, milk and dairy products, fish, fruit and vegetables.
Neither the Decree nor the Resolution spell out the potential penalties that may be applied by the Russian authorities for breach of these prohibitions.
These measures may lead to disputes over liability for non-performance and termination of contracts. Members involved in the carriage of the affected commodities should pay close attention to their contractual arrangements.