Russia to restrict some raw-material exports, but omits details

Russia issued an order saying it would restrict trade in some goods and raw materials in response to sanctions, and said details would follow as to which products would be affected.

President Vladimir Putin signed the order to ban or restrict goods but said those items still need to be defined by the cabinet, according to the document posted Tuesday. The Kremlin instructed the government to prepare a list of countries that the restrictions will apply to in two days. 

Russia is a major exporter of oil, gas, grain, and metals, and commodity prices have surged since the invasion of Ukraine on the prospect of supply disruptions, sanctions, and counter-measures. Wheat, aluminum, and palladium prices climbed after the order was released.

So far, apart from limits on taking currency out of the country, Russia’s retaliatory sanctions have been vague, including the creation of an “unfriendly country” list and a threat this week to cut off natural gas supplies to Europe through the Nord Stream 1 pipeline.

Western powers continue to ramp up measures against Moscow, and on Tuesday the U.S. and U.K. banned imports of Russian oil. The European Union remains divided taking similar measures as it’s more dependent on Russian fossil fuel imports.   

Trade is already severely restricted after U.S. and European sanctions on Russia’s central bank and major lenders. Many companies are also shunning Russian suppliers even where sanctions aren’t in place, including in the oil market.