Vol 19 (2022) - Issue 4

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Russia Sanctions and Cross-Border Commercial Transactions Involving Non-Sanctioned Parties: Capability to Conduct Business, or Not?

Synopsis
As counsellors of businesses worldwide, in recent days international commercial attorneys have become acutely aware that the unprecedented sweeping and seemingly ever-enlarging scope of Russian sanctions means that thousands of non-sanctioned businesses across the globe face extraordinarily stark challenges and questions about how best to comply with all applicable sanction regulations whilst at the same time minimising or, if possible, preventing damage to their economic interests.
Much guidance already has been given by the sanction authorities of the various sanctioning counties regarding the obligations and responsibilities of effected persons, including those who were engaged in dealings with sanctioned persons and entities. However, little discussion or guidance has followed on the impact and consequences of these sanctions on businesses in the EU, UK, Switzerland, the US, Canada, Japan, and Australia. Accordingly, that is the focus of this article – keyed to three hypothetical (albeit realistic) scenarios set out below.