In August 2014 Russia introduced a ban on imports of a number of agricultural products from the EU and from other countries which had imposed sanctions against Russia. This ban gradually affected also the transit of these 'sanctioned' goods, and of all goods traveling from/via Ukraine, through the Russia’s territory. Russian authorities, such as Rosselkhoznadzor, Federal Customs Service, Ministry of Agriculture, etc. were providing often contradictory information as for which cargo can transit and which can not. As a result some were allowed to transit, some were not. The situation became even more complicated since the beginning of 2016 when Russia banned transit of all cargo from Ukraine via Russia to Kazakhstan and Kirgizstan.

In June 2019, the President’s Order 290 was issued permitting transit of sanctioned goods via Russia provided that cargo is accompanied by track&trace devices, i.e. electronic seals. The Order entered into force as of 1 July, but, due to number of technical issues and delays, the real implementation only started in March 2020 when the operator of the  track&trace system was finally selected and a first sealed train carrying sanctioned goods was authorised to transit from the EU across Russia to China.

Detail

The Center for the Development of Digital Platforms[1] was selected in March[2] by the Ministry of Transport as the first operator[3] of the sanctioned goods transit system, using electronic navigation seals[4]. Details concerning the permission for transit of sanctioned goods, including requirements for companies wishing to become operators of the system, were introduced in December 2019[5] and in January 2020[6] by corresponding legal acts.

The Center is 100% owned by RT-Invest Transport Systems (RTITS) owners of which are the son of the 'close to the leadership' businessman A. Rotenberg Igor (23.5%), the company RT-Invest (50%, co-owned by the state corporation Rostec), as well as other top managers. RTITS is the operator of the Platon road fees collection system for trucks in Russia, which has been operating since 2015, and also claims to be the sole contractor for the installation and maintenance of road cameras.

The company will be responsible not only for the use of electronic navigation seals, but it will also become an intermediary between carriers wishing to transit sanctioned goods through the territory of Russia and Russian authorities, i.e. Rostransnadzor/ Federal Customs Service (FCS). It will transmit to these supervisory authorities all information about the transport company, the car, the cargo delivered, planned route, etc.

Only the representatives of approved company/ies will have had the right to install/uninstall the seals. The carriers themselves do not have this right and the supervisory authorities (FCS and Rostransnadzor), only under specific conditions.

Rules for transit of sanctioned goods

Carrier which has onboard 'sanctioned' cargo must notify the system operator no later than 2 hours before crossing the border to Russia, providing information on the car, on the cargo, as well as indicating the planned dates of entry to Russia and departure from its territory. In turn, the operator will transmit all this data to the FCS and/or to Rostransnadzor.

At the same time, it is possible to enter/leave Russia only through selected border crossing points[7]. In total, 20 checkpoints were designated for transit with navigation seals, including checkpoints at the border with Belarus.

Together with the activated device, drivers will also receive a voucher that has to be stored throughout the whole journey and handed over when leaving Russia. The electronic seals will be removed from individual trucks, by representatives of the system operator, as well only at the exit from the Russia’s territory.

The use of electronic navigation seals is paid (the carrier or the consignor or consignee can pay for the service), however, tariffs for their installation/uninstallation have not yet been established. The most quoted figure is 300 rubbles per day.

[1] https://crcp.ru/en/

[2] https://www.mintrans.ru/documents/7/10453,  https://www.asmap.ru/detail-news/mintransom-rossii-prinyato-reshenie-ob-...

[3] Ministry of Transport announced that more than one operator might be selected. The company operating the GLONASS system indicated its interest to become the operator as well

[4] The transit of sanctioned goods was officially permitted already by the President’s Order 290 of 27 June 2019, though it took until March 2020 for the implementation on the ground

[5] Government Resolution 877 of 27 December

[6]  Ministry of Transport order No. 13 of 14 January

[7] List of the border crossing points, in RUS: http://publication.pravo.gov.ru/Document/View/0001201912300105?index=27&...