Courtesy of Mish.
In what may be a testing-the-waters kind of move, the U.S. Allows Transactions for Russian Import Permits.
The U.S. Treasury Department issued a license allowing transactions that enable Americans to get licenses from Russian security services to import certain technology items into Russia.
Export-control experts said the license, issued Thursday by Treasury’s Office of Foreign Assets Control, was “limited in scope” and was issued to resolve “unintended consequences” of the sanctions imposed in December on the Federal Security Service, or FSB, following allegations of meddling in the U.S. presidential election. Despite a storm of tweets that the license was evidence of President Donald Trump easing U.S. sanctions on Russia, experts said this license was merely a technical cleanup.
Trade Tweets
Is important to note that today’s #OFAC FSB general license is very narrow in scope and authorizes limited compliance-related transactions
— Doug Jacobson (@tradelawnews) February 2, 2017
Exactly. Was done to address unintended consequence of FSB sanctions. Makes no concession to FSB or Russia and helps US companies import. https://t.co/NZp0Msj2pF
— Doug Jacobson (@tradelawnews) February 2, 2017
Today’s OFAC action is necessary to resolve unintended consequence of US sanction on Russia’s FSB. GL 1 is limited in scope.
— Doug Jacobson (@tradelawnews) February 2, 2017
We are looking forward to seeing the Executive Order renaming OFAC’s SDN List as the “Bad Hombres List”, which would be more interesting.
— Doug Jacobson (@tradelawnews) February 2, 2017
Trade Consensus Opinions
The consensus opinion is this is no big deal. If this is all the further it goes, I would agree.
But why will it stop here?
It’s clear Trump wants better relations with Russia and so do many politicians in Europe who are increasingly aware the sanctions failed.
Spotlight on the Ruble
Sanction Failure Reality
