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    Russia's President Vladimir Putin gestures during the joint press conference with US President Donald Trump in the Presidential Palace in Helsinki, Finland July 16, 2018

    'Cautionary Tale': Anti-Russian Sanctions May 'Sting' US Companies – Reports

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    On August 27, Washington's new sanctions against Russia, which were imposed over Moscow's alleged involvement in the Skripal case, came into force.

    The White House imposing tough sanctions on major Russian companies may pose a problem to Washington itself given that these companies collaborate with European and US firms, according to a report by The Washington Post.

    The newspaper recalled the "fast and fierce" fallout caused by sanctions on Russian oligarch Oleg Deripaska and his companies in April, followed by "havoc far beyond Russia" and a spike in global aluminum prices that "battered US and European companies that use the metal."

    READ MORE: UK Foreign Secretary to Urge EU to Expand Sanctions Against Russia

    "After an outcry from manufacturers and foreign governments, Treasury softened its stance, giving companies more time to end dealings with the [Russian] aluminum producer, Rusal, and suggesting it could lift sanctions on the company if Deripaska cedes control," The Washington Post said.

    The newspaper described the developments as a "cautionary tale" that comes as US Congress considers slapping more sanctions on Russia, which "could prove painful for European oil and gas companies."

    In this vein, The Washington Post cited economists and trade experts as saying that unlike other countries that have been sanctioned by the US, including Iran, Cuba, Myanmar and North Korea, "Russia plays a bigger role in global commerce, giving the sanctions more potential to sting — both their intended targets and unintended bystanders in the United States and Europe."

    READ MORE: US Reasoning for New Anti-Russia Sanctions Questionable — Lower Saxony PM

    Russia "is part of the world economy [and] a member of the World Trade Organization; its banks are connected throughout Europe and the US," Richard Sawaya, a sanctions expert at the National Foreign Trade Council, pointed out.

    He was echoed by Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics in Washington, who warned that energy-related sanctions "could prove particularly harmful to European companies," which will be banned from "large energy projects outside Russia if they involve a Russian state-controlled company."

    The new anti-Russian sanctions, which came into force earlier on Monday, include, in particular, a ban on supplies of dual-purpose electronic devices and components to Russia.

    READ MORE: Russia Needs to Be Economically Independent Amid New US Sanctions — Author

    Earlier, the Russian Trade Ministry announced that Moscow had developed response measures to offset the US ban on the export of dual-purpose goods to the country, noting that the ban would affect several industries, but that the impact would not be critical.

    The second round of sanctions the White House has threatened to slap on Moscow, whose implementation depends on Russia's future policies, may include banning Russian carrier Aeroflot's flights to the US, limiting diplomatic ties and halting US exports.

    After ex-Russian spy Sergei Skripal and his daughter Yulia were found unconscious in Salisbury, UK, on March 4, London was quick to accuse Russia of orchestrating the Skripals' poisoning with a nerve agent.

    The Russian government has repeatedly denied involvement in the Skripal case, pointing at the lack of evidence provided by London.

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    fallout, governments, collaboration, companies, prices, sanctions, Oleg Deripaska, United States, Russia
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