Russia challenges U.S. at WTO over sanctions PM Medvedev

2^min

Russia has filed a complaint with the World Trade Organisation against the United States for imposing sanctions over the Ukraine crisis, Prime Minister Dmitry Medvedev said on Friday.

Moscow had already told Washington it considered the sanctions, imposed in response to Russia's annexation of Ukraine's Crimea and its continued involvement in the Ukrainian crisis, to be illegal under WTO rules.

"When the United States imposed sanctions against Russia, which had a negative impact on our foreign trade, we decided to challenge these sanctions in the World Trade Organisation," Medvedev told a law conference in Russia's northern city of St Petersburg.

"We've sent a communique to the World Trade Organisation."

Washington and the European Union have imposed sanctions on several Russian and Ukrainian individuals, but Washington has also targeted a number of Russian firms and banks it says are linked to President Vladimir Putin or his close associates.

In particular, it accuses Russia of backing armed separatists fighting the government in eastern Ukraine.

"These kind of sanctions do indeed violate WTO rules," Medvedev said, arguing that banning service providers from another country constituted an infringement of the 'most favoured nation' status that WTO members accord each other.

Although it joined the WTO less than two years ago, Russia has already become embroiled in trade disputes with the European Union and Japan. A flurry of Russian threats and warnings suggest that more cases could soon follow.

He said challenging the United States may not be easy.

"The U.S. has both doctrinal and practical authority in the World Trade Organisation," he said. "The state is a leader in the raising of trade disputes with the WTO."

He also suggested that disputes between Russian and Ukraine companies could be solved in an arbitration court.

REUTERS

Russia challenges U.S. at WTO over sanctions - PM Medvedev