Russia May Ban Imports Of Garments And Textiles From The EU And The United States As A Reprisal.

In response to further sanctions against the United States and the European Union, Russia may fully ban the EU and US imports of clothing and textiles as a retaliation, industry officials said.

According to an official spokesman of Russia's Ministry of industry and trade, the Russian government is planning to provide domestic textile producers free of charge for cheap bank loans, with interest rates not higher than 5%.

In addition, there are plans to provide more tax incentives to manufacturers.

He added that Russia may also provide direct subsidies to some of the major textile producers in the country, including well-known companies such as KamyshinTextile, Parchovya Ryad and so on.

According to the data of Russian Federation National Bureau of statistics, the proportion of textiles and garments imported from Russia and the United States accounts for about 10% of Russia's goods.

Traditionally, such imports are the most expensive and high margin products.

According to a preliminary estimate by Ross's industry and trade analyst, the ban will cause western garment and textile manufacturers to lose about 7 billion 700 million euros a year.

According to Viktor Evtuhov, Deputy Minister of industry and trade of Russia, sanctions against textiles and light industrial products in the West will significantly increase Russian domestic production, and Russian domestic demand is growing steadily.

In August 18th (2014) August 18th, Evtuhov said at a meeting of the Ministry of industry that the additional demand was not only due to the new market created by the recent annexation of Crimea, but also the reason for the 2014 Winter Olympic Games to detonate demand.

It has been stated that government procurement contracts will not allow imports of garments and textiles from the EU, and prohibit the importation of such apparel and textile products.

The Russian government issued a decree in August 11th this year. Since September of this year, 1 public utilities have stopped importing textiles, knitwear, non-woven fabrics and certain ready-made garments.

The ban on textiles, clothing and related inputs applies to the government of Russian Federation and the municipalities directly under the central government, but does not include the two other countries of the two Russian dominated European and Asian customs union, such as Belarus and Kazakh.

The procurement ban includes textile products, ropes, strings, nets, garments and other nonwoven materials and products, knitted fabrics, socks, jumper sweaters, cardigans, trousers, jackets, underwear, and fur products.