RESTRICTED  
  
S/C/W/353  
G/C/W/697  
 
23 April 2014  
(14-2475)  Page: 1/2  
Council for Trade in Services 
Council for Trade in Goods  Original: English  
 
COMMUNICATION FROM THE RUSSIAN FEDERATION 
 
CERTAIN TRADE RESTRICTIVE MEASURES ADOPTED BY THE UNITED STATES 
The following communication, dated 17 April 2014, fr om the delegation of the Russian Federation, 
is being circulated to the Members of the Council for Trade in Services and the Council for Trade in 
Goods.  
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 1.1.  The Russian Federation refers to Executive orders of 6th, 17th and 20th March 2014 adopted 
by the President of the United States (hereafter Executive orders). In accordance with the said 
Executive orders all property and interests in property that are in the United States, that 
thereafter come within the United States, or that are or hereafter come within the possession or 
control of any United States person (including foreign branch) of the persons determined by the 
Treasury of the United States, including person s of the Russian Federation, are blocked and may 
not be transferred, paid, exported, withdrawn, or otherwise dealt in.  
1.2.  The Russian Federation has serious concern as regards both the substance of these Executive 
orders and practical implementation thereof. 
1.3.  The Russian Federation would like to draw the attention of the United States to the General 
Agreement on Trade in Services (GATS) and the Sc hedule of Specific Commitments of the United 
States. Such specific commitments were undertaken by the US in a vast number of sectors and 
preclude the US from taking actions that would undermine the rights of the Russian services suppliers operating within the United States or engaged in trade in services with the US 
counterparts, in particular, in the manner provided for in the Executive orders.  
1.4.  In accordance with the Executive orders blocking of the assets is applied to any person of the 
Russian Federation operating in any sector of the Russian economy. The measure consequently 
affects Russian services suppliers in a priori all sectors of the economy of the United States. The 
measures provided for in the Executive orders are incompatible with the obligations of the United 
States under the GATS. 
1.5.  The measures put the services suppliers of the Russian Federation and their services in less 
favourable position than services suppliers and their services from any third country that are not 
subjected to like impediments. Such measures are not in conformity with the requirements of the 
GATS Article II.  
1.6.  The Executive order of 20th March contains an illustrative list of sectors of the economy of 
the Russian Federation, the operators of which are subjected to the said restrictions. Among others they contain: financial services, energy, mining  and engineering. The Russian Federation draws 
the attention to the fact, that the United States have undertaken specific commitments, among 
others, in respect of  banking services, services incidental to mining, services incidental to energy 
distribution, construction and engineering services. In these circumstances it is not clear why notwithstanding these commitments the United States applies a measure that is not administered 
in reasonable, objective or impartial manner. The criteria for application of the measures in respect 
of particular Russian persons are not provided fo r by the Executive orders. To the contrary, the S/C/W/353 • G/C/W/697 
 
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  application of the measure is at full discretion of the US Treasury without any further clarification, 
guidance or justification. For these reasons such measures are not in conformity with the requirements of the GATS Article VI and the spec ific commitments of the United States under the 
GATS.  
1.7.  Blocking of assets and prohibition to cond uct any transaction within the territory of the US 
effectively mean that the service suppliers are precluded from supplying their services both 
through mode 1 and mode 3 notwithstanding the specific commitments undertaken by the US in 
particular sectors. For these reasons such measures are not in conformity with the specific 
commitments of the United States under the GATS. 
1.8.  Moreover, the GATS Article XI prevents the US from imposing any restrictions on 
international transfers and payments for current transactions relating to specific commitments of 
the US. For these reasons such measures are no t in conformity with the GATS Article XI. 
1.9.  Blocking of assets of the Russian person s and prohibition of any activity thereof have 
practical negative effect on particular Russian service suppliers.  
1.10.  The Russian Federation also notes that notwithstanding specific commitments undertaken 
by the United States in respect of mode 3 in th e banking sector the Executive orders effectively 
preclude one of Russian banks listed by the US Tr easury to establish a commercial presence within 
the territory of the United States. Moreover, the Executive orders prohibit cross-border supply of 
services by that Bank as well as payments related to its activities. As the result of implementation of the Executive orders certain US based paymen t systems already interrupted the serving of the 
cards issued by this Russian bank. As a consequence that Bank was unable to provide its services, 
in particular, within the territory of the US.  
1.11.  In the absence of any justification under the WTO Agreement on the part of the United 
States, the Russian Federation urges the US to brin g its Executive orders in line with the GATS and 
its specific commitments.  
1.12.  The Russian Federation also requests confir mation from the US that the requirements of the 
Executive orders will not undermine the commitm ents of the United States under the GATT. 
1.13.  The Russian Federation also notes debates among the political elite of certain WTO Members 
calling for imposition of trade restrictive measures in respect of Russian goods and services, exports to Russia and transfers of payments. In response to these debates we call upon all WTO Members to refrain from being misled by such political motives and neglecting the WTO 
Agreement.  
 
 
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