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A new wave of the US and EU sanctions introduced last week is further undermining the most important sectors of the Russian economy: the financial sector, the oil and gas sector and the military-defense sector. Once again, the sanctions are aimed at oil and gas corporations, enterprises of the military-industrial complex and large banks with a state participation. It is to be noted that as in the previous cases the effects from introduction of sanctions can be different for different players.

On September 12, the Central Bank of Russia made a decision to preserve the rate at the level of 8% though it does not exclude further growth in rates if inflationary expectations consolidate at a higher level and there is a risk of the rate of inflation not falling to the target level of 4% in the mid-term prospect.

The food embargo on goods fr om the US, the EU, Norway and Australia made the Russian authorities look for additional funding of the agro-industrial complex. The Ministry of Agriculture says it is important to increase the volume of subsidies this year by 50% to Rb 252.5bn, while in general till the year 2020, to nearly Rb 1.8 trillion.

On September 10, Karel De Gucht, European Commissioner for Trade said that the US should take an obligation to export oil and natural gas to Europe within the frameworks of the transatlantic trade agreement which is due to be signed by the end of 2014.

In August, sales of new cars and light commercial motors in Russia – both imported ones and assembled at Russian motor works fell by 26% to 172,000 cars. On the basis of eight months of 2014, the market fell by 12% to 1.58m cars.

On September 3, 2014, the WEF Global Competitiveness Report 2014–2015 was published. According to the above Report, the rating of the Russian Federation moved 11 positions upwards.

The Bank of Russia reduced on August 18 the volume of accumulated interventions shifting by 5 kopeks the currency trading band to $350m from $1000m.

The Central Bank of Russia has  widened to Rb 9 fr om Rb 7  the  range  of  the acceptable  ruble value of the  dual-currency  basket (floating  trading band)  since August 18, 2014. The  range of the currency  trading  band  has been  shifted  by Rb 1 for  either  side of the trading  band  so that  the  floor  and  top  limits  are  set Rb 35,4 and  Rb 44,4  respectively (now  the dual-currency basket value is set  Rb 41,61).

In the centrally planned socialist autocracies of the past century, the state was in charge of everything, with only a few exceptions though: beginning with national defense and economic policy and ending with the production of irons and school uniform. Unlike buyers of second hand cars, individuals in the socialist block were well aware of the characteristics of the consumer goods produced in the country and the quality of public goods such as medical or education services offered by the regime.

Last year the lending market was characterized by high debt ratio. The share of payments for servicing households' debts to banks kept growing over the past year and reached more than 13% of the total households' disposable income by the middle of the current year. Last year the share stood at about 11%.

In pursuance of the Executive Order of the Government of the Russian Federation of August 7, 2014 No. 778 On Measures to Implement the Order of the President of the Russian Federation of August 6, 2014 No. 560 On Applying Certain Special Economic Measures to Ensure Security of the Russian Federation, a one-year ban has been imposed on import to the Russian Federation of agricultural products, raw materials and food products originating from the United States of America, EU member states, Canada, Australia and the Kingdom of Norway.

The US and EU authorities limited almost simultaneously the sources of funding for Russian state-owned banks. At present, apart from the Gazprombank and the Vneshekonombank the access to the US capital market is also closed to the Rosselkhozbank, the VTB and the Bank of Moscow. Also, the Sberbank is included in the sanction list.

 On July 25, the Board of Directors of the Central Bank of Russia has taken a decision to raise the key rate from 7.5% to 8.0%.

In June, the Ministry of Trade and Industry of the Russian Federation published officially for the first time on its site the list of entities included in the consolidated register of entities of the military-industrial sector (MIS). As compared to the first version (February 2013), the total number of entities included in the latest version of the register increased within 16 months by one entity to 1341, though in October 2013 it fell to 1330, while in April 2014 it rose again to 1339.

On July 22, 2014, a meeting of the WTO Dispute Settlement Body was held.

On July 21, 2014, the Organization for Economic Cooperation and Development (OECD) presented on its site the full version of the Standard of the Automatic Exchange of Financial Account Information in Tax Matters.