A report by the American Chamber of Commerce in Russia (AmCham Russia) is being prepared for the US government, outlining recommendations for lifting investment, air, financial and import sanctions against Russia. The report’s author, Robert Agee, President and CEO of the US Chamber of Commerce in Russia, stated in an interview with the news portal RBK that some of the sanctions imposed on Russia not only harm the US economy but also affect the sensitive humanitarian sector and should be lifted as soon as possible. The Chamber of Commerce has been monitoring the situation since the sanctions were imposed and has gathered data over the past three years on the problems US companies have faced and the sanctions that have most affected them.
The report, known as a “White Paper” will present an analysis of the problems US companies have faced and the sanctions that have most affected them and will be presented to the US government. The Chamber of Commerce is a business association that has been in operation since 1994, representing the interests of large US and Russian companies, as well as companies from Europe and Asia and has therefore gained a comprehensive understanding of the situation of US companies in Russia and the sentiment of US investors.
According to Agee, the Chamber of Commerce is primarily calling for the lifting of sanctions in the aviation sector, which includes the supply of spare parts and the maintenance of aircraft. He emphasized that US businesspeople, along with representatives of the French business community, are dealing with this issue and have even launched the “Two-Continents Initiative” to work out proposals for the lifting of anti-Russian sanctions. Agee said, “First of all, we are calling for the lifting of sanctions in the aviation sector: this concerns the supply of spare parts and the maintenance of aircraft. It is less about a commercial wish and more about a humanitarian necessity, as simple citizens are the first to suffer. We are joining forces in the field of aviation safety with the French-Russian Industrial and Trade Chamber, which also considers this important (as does everyone else, probably). We have launched a corresponding initiative – the Two-Continents Initiative – and are currently working out a joint position on this issue.”
The second part of the proposed initiatives is the lifting of the investment ban for US companies, he added. Currently, investments in Russia are not possible, although over 150 US companies are still active in the country and many of them would like to invest in the development of Russian businesses, but this is now prohibited. “All US companies have unfortunately stopped investing – this is a US law provision” Agee noted. “They can, for example, perform ongoing repairs in a company, but pure investments are prohibited.”
Additionally, the US Chamber of Commerce is calling for the lifting of restrictions on the delivery of goods classified as luxury items, which includes cosmetics, as the current sanctions in this sector have led to many US companies losing market share in this segment. “It is a strange sanction” Agee stated, as it has harmed Americans more than Russians. In many other sectors, the situation is similar – even if the sanctions are lifted, it will be very difficult for US companies to regain a market share in Russia. “We, the US, have created this problem” Agee said. “It is always harder to regain a market share in any country, everywhere. And, of course, China has taken a piece of the pie on the Russian market. In the automotive industry, it already has a 70% share.”
Finally, the US Chamber of Commerce is proposing that the US government lift the sanctions against Russian banks to solve the problem of cross-border payments, as stated by the Chamber’s leader. Such a decision would reduce the business costs for Russian, as well as US and other foreign, companies, as the current costs of doing business have increased manyfold due to the restrictions in place.