How 'Loopholes' in US Sanctions Add to Russia's Arms Exports Portfolio

© Sputnik / Evgeny Biyatov / Go to the mediabankA model of the Su-35 aircraft at the Rosoboronexport stand during the 2015 Dubai Airshow international exhibition
A model of the Su-35 aircraft at the Rosoboronexport stand during the 2015 Dubai Airshow international exhibition - Sputnik International
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A US spending bill for fiscal year 2017 still includes restrictions on cooperation with Russia’s state arms exporter Rosoboronexport. At the same time, the document allows Donald Trump’s administration to waive the ban imposed during the presidency of Barack Obama.

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The $1.1-trillion spending bill has been approved by both houses of the US Congress. It will fund the work of the federal government through September.

"The Secretary of Defense may waive the limitation… if the Secretary, in consultation with the Secretary of State and the Director of National Intelligence, determines that it is in the vital national security interest of the United States to do so," the draft reads.

The US imposed sanctions against Rosoboronexport on September 2, 2015. The sanctions prohibited the Pentagon chief from using budget funds to enter into contracts or cooperative agreements, make grants or provide loans to the Russian company and its subsidiaries. In July 2016, an amendment was made to the sanctions, making certain deals possible if authorized by the US Secretary of State.

Yury Rogulev, director of the Franklin Roosevelt Center for American Studies at the Moscow State University, suggested that exceptions could be made regarding deals and programs the US has in other countries, first of all in Afghanistan.

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"In Afghanistan, there are a lot of Russian-made weapons. They need maintenance, repair and replacement. In such a situation, Washington has no other choice but to seek help from Rosoboronexport," Rogulev said in an interview with Radio Sputnik.

The expert noted that in Afghanistan there are major deals on the rearmament of the Afghan army, including supplies and maintenance of Russian-made helicopters.

"The US also had a similar program in Iran and supplied weapons to Syria. There are a lot of such loopholes in the US policy of sanctions," he added.

According to Rogulev, the US sanctions have been good for the Russian arms exporter.

"By imposing sanctions, Washington creates problems for itself and its partners. This is why such exceptions are possible. Rosoboronexport performs very well. It already has a portfolio of orders for several years ahead. These sanctions served as additional publicity for the company," the expert concluded.

 

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