We use cookies to make your experience of our website better. Some of these are set by third party Google Analytics to help us analyse website traffic. To comply with privacy regulations, we require your consent to set these cookies. If you continue to use the site without selecting an option we will assume you are happy for us to use cookies.

Sanctions Increasing As The Pressure on Russia Grows

Sanctions Increasing As The Pressure on Russia Grows

Increasingly stringent sanctions have been imposed on Russia as a result of its involvement in the continuing unrest in the Ukraine, with the EU and the US announcing the latest round of co-ordinated measures earlier this month.  The President of the EU Council, Herman van Rompuy, said that these measures are aimed at “promoting a change of course in Russia’s actions destabilising eastern Ukraine”. 

The newly announced sanctions target Russia’s finance, energy and arms sectors.  They include limits on the ability of Russian banks to access western credit markets, bans on the export of dual-use equipment for military use in Russia, and a ban on future arms deals.  Additionally, foreign companies are now prevented from providing technology, goods or services to projects in Russia which are aiming to extract oil from the Arctic, deep offshore fields and shale formations.  As the world’s second largest oil exporter, Russia exports 10.5 million barrels per day, however these restrictions are likely to have a significant impact on an industry which relies so heavily on services provided by international contractors.   

Criminal penalties can be imposed for a breach of international sanctions and can result in the prosecution of organisations and individuals alike.  As a result, it is vital that organisations have an awareness of what international sanctions are in place and an understanding of how they relate to their business.  It is also important to ensure that there are measures in place to address the risks which can arise.  An effective sanctions compliance policy is easy to implement yet very few businesses currently have one in place.

In respect of Russia, the political landscape continues to shift on a daily basis.  Russia has condemned the action that has been taken against it and denies any wrongdoing.  The US and EU have, however, made it clear that the sanctions will not be lifted until Russia removes its materials and forces from the Ukraine.  Whether or not this latest round of sanctions will lead to a successful resolution of the conflict remains to be seen, but if you would like further information on dealing with the Russian or any other current sanctions in force, or on the implementation of a sanctions compliance programme, please contact the Burness Paull HSE team.

Grant McGregor
Trainee Solicitor

 

Burness admin