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May 06, 2022

Collins, King, Join Bipartisan Group Urging Reconsideration of Russia’s Market Economy Status

Washington, D.C. – U.S. Senators Susan Collins (R-ME) and Angus King (I-ME) joined a bipartisan group of their colleagues in sending a letter to Secretary of Commerce Gina Raimondo to urge her to reconsider Russia’s status as a market economy within the meaning of the anti-dumping (AD) law of the Tariff Act of 1930.

Although the Commerce Department classified Russia as a market economy in 2002, Russia has increasingly backtracked on its commitment to a free market economy. Now, after its invasion of Ukraine, Moscow has taken further steps to centralize control over the Russian economy. Classifying Russia as a non-market economy would give the United States more flexibility to impose additional anti-dumping duties, and it would increase pressure on Russia for its violation of international norms in invading Ukraine. 

“Russia imposes restrictions on eight of the eleven types of capital transactions tracked by the International Monetary Fund, and since Russia’s invasion, the conversion of the ruble has become only more difficult. Recently, the Central Bank of Russia announced it will prevent banks from selling foreign currency to Russians and limit how much foreign currency individuals can withdraw from their accounts. These edicts are explicitly designed to restrict access to foreign currency,” wrote the Senators. 

The Senators continued, “Russia’s economy is also marked by government ownership and control over production. According to Russian government sources, the state’s share in the Russian economy may be as high as 70 percent. This growth of economic intervention by the Russian government tracks the rapid expansion of State Owned Enterprises (SOEs) in Russia. According to the International Monetary Fund, Russia has the third most SOEs per capita in the world.” 

In addition to Senators Collins and King, the letter was co-signed by Senators James Lankford (R-OK), Rob Portman (R-OH), Sherrod Brown (D-OH), Mike Braun (R-IN),  Todd Young (R-IN), Chuck Grassley (R-IA), Richard Blumenthal (D-CT), Jack Reed (D-RI), Bill Cassidy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Steve Daines (R-MT), Lisa Murkowski (R-AK), and Roger Wicker (R-MS).

The full text of the letter can be read here.

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