EU Sanctions Against Russia To Harm European Companies, Violate WTO Regulations , Says Belousov

Sanctions against certain sectors of the Russian economy reportedly being discussed by EU countries would harm European companies operating in Russia and would violate WTO regulations, says Russian presidential aide, Andrei Belousov.

“You know, it’s hard for me to decide for the EU but I do hope that these two factors will be taken into consideration in making a final decision,” Belousov told journalists in commenting on the possibility of such sanctions on the sidelines of the St. Petersburg International Economic Forum (SPIEF) on Saturday.

“The first factor is dependence and the interests of European companies operating in Russia, because sanctions [if they are imposed] would hit them. These European companies working here work to a significant extent for European markets and take their revenues out to Europe.”

German, French, Italian, and Dutch companies, that is, those whose business is represented in Russia, would suffer significantly,” he said.

“The second factor: these sanctions would set a very bad precedent in the WTO. The WTO mechanism does not envision sanctions that one WTO member may impose on another. There are rules worded very strictly as to when trade restrictions may be introduced. And there are no rules entitling one country to say to another country: you know, I don’t like your policy, you threaten my security, and therefore I’m going to cut off your trade now,” Belousov said.

If such sanctions are imposed, Russia could appeal to the WTO Dispute Settlement Body, and “if a ruling is made in Russia’s favor, our partners from the US and Europe would find themselves, so to speak, in a very interesting situation,” he said.

If a ruling is made in the EU’s favor, “the situation would be even more interesting,” Belousov said. “This would mean that such sanctions have become part of WTO practice. I can name some three dozen countries that would eagerly take advantage of this and would announce immediately that they have problems with security or some other motives and, proceeding from this precedent, would impose such sanctions as well, which could lead to the WTO’s collapse,” he said.

If sanctions are imposed on Russian economy sectors, “our answer would definitely not be limited only to this [the filing of suits with the WTO Dispute Settlement Body],” Belousov said.

“We have already analyzed options for our actions if such a reaction occurs,” he said, refusing to elaborate on the matter, Interfax reports.

Voice Of Russia

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