The press service of Russia’s Ministry of Economic Development stated that the United States Department of Commerce’s move to strip Russia of market economy status is biased and political in nature. A formal briefing on the episode was issued on Friday, November 11, according to TASS (citation: TASS).
Officials noted that the decision to revise the status came merely six months after Washington had confirmed that the Russian economy remains within the market-economy framework.
“The conditions that would justify reconsidering a prior ruling only emerged after the commencement of proceedings. The current military action in Ukraine is the direct consequence of actions by several countries, not the United States alone”, the ministry stated. It also hinted that dispute-resolution procedures within the World Trade Organization could be part of the discussion (citation: Interfax).
“This U.S. decision lacks logic, because Russia’s non-market designation is shaped by the environment created by the United States itself. Implementing this approach would require Russian goods to be supplied to the U.S. market”, the ministry stressed.
Russian exports have faced a broad set of sanctions, including outright bans, additional tariffs, and practical barriers to payment and delivery by American buyers.
The Department of Economic Development argued that the so‑called “market principles” as perceived by the United States are not used to guarantee genuine competition but rather to curb competition from non-American producers.
The Russian economy reclassified as non-market
On November 10, the U.S. Department of Commerce announced that Russia can no longer be considered a market-economy country under the framework of U.S. anti-dumping law and will be treated as non-market. This reclassification follows an investigative review (citation: U.S. Department of Commerce).
According to the bureau’s release, the decision rests on an analysis of independent sources. The agency asserted that growing state involvement in the Russian economy disadvantages American industry attempting to compete globally.
“Government intervention in Russia has contributed to higher prices and costs for Russian companies, influencing the formation of non-market price signals for imports into the United States”, a source close to the matter noted (citation: Vedomosti). A former official from Russia’s Ministry of Economic Development added that, practically, the decision’s impact would be limited given ongoing sanctions (citation: Higher School of Economics).
“The U.S. ruling on Russia’s non-market status for anti-dumping purposes means exporters’ costs will not be considered in investigations into Russian goods. Instead, costs from third countries will be used”, the analyst explained. The same perspective warned that additional restrictions on access to the U.S. market could rise for sectors such as metallurgy and chemicals (citation: Higher School of Economics).
From another angle, amid broader U.S. measures against Russia, the immediate practical adverse effects of the Commerce Department’s decision are unlikely to be significant, the expert concluded (citation: Higher School of Economics).
Historically, the United States granted market status to Russia in 2002. In 2021, a review by the U.S. Department of Commerce concluded there were no sufficient grounds to revoke that status. The review process was reopened in May 2022 due to evolving circumstances (citation: U.S. Department of Commerce).