State Department warns against doing business with blacklisted Russian firms

A sanction law, which Congress unanimously passed early this month and was awaiting Presidential assent, was finally implemented on Friday by the State Department. The law, which warns third parties against doing business with selected toxic Russian firms, was due for implementation on October 1st, according to Fox News reports.

The sanction law had been resisted by President Trump which was largely attributed its belated implementation.

The majority of the Russian companies on the sanctions list are affiliated with Russia's defense and intelligence sectors and are state-owned. Congress made the move as retaliation for Russia's meddling in last year's presidential elections, and as a protest towards its aggressive military campaign in Syria and Ukraine.

Business sanctions

The sanction bill states that while the US cannot bar anyone from doing business with the over three dozen blacklisted Russian companies, the State Department reserved the right to lock one out of the American financial system or freeze one's assets.

Among the blacklisted companies included Almaz-Antey, a missile manufacturing company, and Rosoboronexport which deals with arms.

The two companies also do business with US-allies like Turkey and Saudi Arabia which complicated the sanction bill.

To remedy the situation, the State Department clarified that imposing sanctions on a third-party doing business with the Russian firms was flexible. The business dealings would be reviewed first before any sanctions were implemented.

Sanction bill concerns

According to Secretary of State Rex Tillerson, the delay in the sanction's implementation was due to the government weighing its impact on US-allies. Nato member and US-ally Turkey, currently has a deal with Almaz-Antey, for the delivery of an advanced missile system.

Saudi Arabia, on the other hand, has a pending arms deal contract with the Russian government, The Daily Mail reported.

Trump complained in a statement after signing the bill, saying that Congress had overstepped its boundaries and limited his power to negotiate with foreign governments. He also openly challenged the findings of his government's intelligence agencies on Russia's election meddling.

The persistent push and pressure by the sponsor's of the bill, Sen John McCain, and Sen. Ben Cardin, to have the bill signed into law, finally paid off on Friday.

The two Legislators had said earlier that the bill's implementation, would be a step in the right direction.