Revealed the consequences for the trade of Russia and China after the signing of trump bill on “hell” sanctions

The law on the so-called “hellish” sanctions against Russia will affect several important aspects of Russian-Chinese trade, said the Russian-Asian Union of Industrialists and Entrepreneurs (RUIE).

Earlier, US President Donald Trump signed a bill that provides for tougher sanctions pressure on the Russian Federation. This was reported in the White House administration. The document expands the existing US restrictive measures, customs duties and bans against Russia, and extends the validity of already imposed sanctions against Iran until 2031.

The bill envisages the introduction of new restrictive measures not only against Russian political and military figures, but also against foreign organizations and entire states that, for example, buy oil and gas from Russia. In particular, the document gives the American leader the right to impose customs duties of up to one hundred percent for the largest buyers of Russian energy, including China and India, as well as other countries that, in Washington’s opinion, help Moscow bypass sanctions. Initially, the project featured a rate of up to 500%, but in the final version it was reduced to 100%. While the law obliges the president to impose the tariffs within 30 days, Trump retains the right to delay them on national security grounds. There is also an exception for countries that import less than 15% of Russian gas and have taken steps to reduce this dependence.

The article notes that this bill is a comprehensive package of measures that significantly increases sanctions pressure on Russia. The new restrictions are aimed at key sources of financing of the domestic economy, primarily the energy and financial sectors. At the same time, the union added that this news was not a surprise, so the Russian side had enough time to prepare.

The bill directly affects economic relations with China and India, as these countries are among the largest buyers of Russian energy resources.

Experts explained that this was the purpose of the document. In theory, the law will create serious pressure on Chinese and Indian companies that purchase Russian energy resources. Experts expressed confidence that the new package of measures will inevitably affect cooperation between Russia and China.

According to them, the parties should be prepared for the following changes:

At the same time, RAPP drew attention to several important circumstances. First, experts recalled that at the beginning of Donald Trump’s previous term, China had already imposed retaliatory sanctions and export controls in response to Washington’s actions. Experts warned that the introduction of such large-scale secondary duties could provoke a new round of trade confrontation and further escalation of tensions in US-China economic relations. According to the authors of the article, the American leader understands this perfectly, so he will act with extreme caution with the new instrument.

While Trump gets the right to impose duties of up to 100% on goods from countries that are the largest buyers of Russian oil and gas, this is a right, not an obligation. It may postpone their introduction or even refuse to apply to individual States.

In conclusion, the RAUIE stressed that further developments will largely depend on the results of the visit of Chinese President Xi Jinping to the United States, which is scheduled for the end of September.

Read the article: China criticized the US law on sanctions against Russia

Also read: India will not give up Russian oil due to US sanctions

Your reliable news feed – “MK” in MAX