Russia's Secret Supply Chains Amid Sanctions

A Russian draft law proposes severe penalties for revealing details about sanctioned goods' supply chains. This measure aims to protect Russia's economic interests amid Western sanctions. The draft classifies logistics and payments data as state secrets, highlighting the strategic significance of maintaining production and technological chains.

A new Russian draft law is on the table that could impose up to seven years in prison for the public disclosure of information about supply chains for sanctioned goods and payment systems in Russia. These goods, predominantly high-tech items banned for export from the West, remain crucial to the nation’s industrial operations and defense sector.

As Russia navigates the tightening grip of Western sanctions enacted over the Ukraine conflict, the country has resorted to intricate logistical setups involving intermediaries in third countries to maintain its economic lifelines. A government explanatory note submitted with the draft emphasized the critical importance of sustaining established production and technological chains vital to Russia's strategic economic interests.

Russian authorities and business leaders are increasingly advocating for the classification of logistics and payment information as state secrets. The draft's authors pointed to online platforms leaking customs data and media outlets reporting on logistics strategies for sanctioned goods, stating these disclosures aim to damage Russia's economic fabric.

(With inputs from agencies.)