Sanctions
Economic sanctions are a complex, high-risk and ever-changing mix of law, economics, policy and international relations.
Business Crime - Sanctions publications
Responses to the Russia/Ukraine Crisis - Sanctions Update No. 8
29 October 2024
As the war in Ukraine grinds on, tackling the evasion of sanctions and enforcing national restrictions remain top priorities for allied states. A particular focus recently has been on Russia’s so-called “shadow fleet” – ships, and particularly oil tankers, being used to evade sanctions and circumvent the oil price cap. Countries are showing a united approach - in September the G7 published its first ever joint guidance for industry on preventing evasion of export controls and sanctions against Russia.
Keep up to date with the latest in our Russia/Ukraine sanctions series.
(Wh)OTSI’s new?
16 October 2024
The government’s new trade sanctions implementation body, OTSI, came into operation last week, with a raft of new civil enforcement powers to monitor sanctions compliance and penalise breaches. We look at what’s new, what stays the same and who will now enforce what.
EU responds to Russia’s anti-suit injunctions with transaction ban
25 June 2024
As part of its 14th package of sanctions, the EU has adopted measures designed to counteract the increasing prevalence of claims being brought in Russian courts pursuant to Russian laws conferring exclusive jurisdiction over disputes involving sanctioned parties. In this ArbitrationLinks post, we take a look at the EU’s measures.
Clause and effect: Supreme Court confirms no duty under “reasonable endeavours” wording in force majeure clauses to accept non-contractual performance
21 May 2024
In RTI Ltd v MUR Shipping BV [2024], the Supreme Court unanimously overturned a decision of the English Court of Appeal and found that “reasonable endeavours" wording in a force majeure clause cannot require the affected party to accept an offer of non-contractual performance by the other party in order to overcome the event or state of affairs to which the "reasonable endeavours" applied.
EU overhauls and strengthens enforcement of EU sanctions
14 May 2024
The past year has been marked by an increased focus on enforcement of EU sanctions. With enhanced cooperation at an EU level and fines possibly going beyond 5% of a company’s global turnover, the EU now seems to be showing its teeth by adopting Directive (EU) 2024/1226 on the definition of criminal offences and penalties for the violation of Union restrictive measures and companies may feel the bite.
U.S. Agencies Issue Tri-Seal Compliance Note on Foreign-based Persons’ Obligations to Comply with U.S. Sanctions and Export Controls
12 March 2024
On March 6, 2024, the three U.S. agencies charged with administration and enforcement of sanctions and export control laws—the Department of the Treasury, the Department of Commerce, and the Department of Justice—released a new guidance document discussing the legal and compliance obligations of foreign-based persons. The tri-seal compliance note focuses on the legal exposure for non-U.S. companies with respect to U.S. sanctions and export controls and provides compliance considerations for such entities to help mitigate risk.
A first step towards “making Russia pay”?
28 February 2024
The Council of the European Union has adopted a new regulation setting out the rights and obligations of Central Securities Depositories holding assets and reserves of the Central Bank of Russia that are immobilised because of the EU’s restrictive measures. This Regulation is the next step in a political process aiming to make Russia pay for the reconstruction of Ukraine.
Responses to the Russia/Ukraine Crisis - Sanctions Update No. 7
7 February 2024
It is nearly two years since Russia invaded Ukraine and governments across the globe responded by imposing a raft of financial and trade sanctions on Russian entities, individuals and supporters of the Russian regime. Domestic authorities’ attention is now turning to ensuring those regimes are complied with, limiting the scope for circumvention and penalising those who breach legal restrictions.
In our latest update looking at the commercial impact of the Ukrainian crisis, we examine developments in the UK, EU and U.S. and see how sanctions enforcement is taking centre stage.
China-Related Sanctions: Trends and Responses
31 January 2024
Nearly two years after Russia’s invasion of Ukraine, G7 countries continue to ratchet up economic sanctions on Russia, increasingly against third-country entities and sanctions evasion networks. As regulators continue to look to blocking sanctions and export controls as a means to further foreign policy goals, there is an increasing concern among policymakers, civil society, and the business community as to whether and how such tools could be used against the People’s Republic of China.
Post-Mints: to what extent does Vladimir Putin “control” everything in Russia?
23 November 2023
Over a month since the Court of Appeal's judgment in PJSC National Bank Trust and another v Boris Mints and others, the Foreign, Commonwealth and Development Office (“FCDO”) and the Office of Financial Sanctions Implementation (“OFSI”) have now issued updated guidance on interpreting the "control" test in the Russia (Sanctions) (EU Exit) Regulations 2019 (the "Russia Regulations"). The case has also been considered by the High Court in Litasco SA v Der Mond Oil and Gas Africa SA and another. This post will consider these post-Mints developments and what they mean for interpreting the Russian regulations.
GIR Guide to Sanctions 4th edition: Key Sanctions Issues in Civil Litigation and Arbitration
20 October 2023
The GIR Guide to Sanctions 4th edition – Key Sanctions Issues in Civil Litigation and Arbitration is a comprehensive resource that helps practitioners navigate the increasingly complex world of sanctions. The guide addresses the impact of sanctions on contractual relationships, civil litigation, and arbitration, offering insights on various regimes and practical challenges they pose for businesses and their advisers.
Mints case ruling: UK sanctions do not prevent designated persons from accessing UK courts and receiving judgments
17 October 2023
Read our analysis of the Court of Appeal’s ruling in Boris Mints & Ors v PJSC National Bank Trust & Anor, including the implication of the obiter remarks.
Claims filed in Russian Courts in breach of arbitration agreements
6 March 2023
A number of Russian parties have recently filed (or threatened to file) claims in the Russian Courts, notwithstanding arbitration agreements in the underlying contracts providing that claims must be exclusively submitted to arbitration. These claims have been made possible by previously enacted Russian legislation. The Russian Courts are already issuing judgments taking jurisdiction and issuing anti-suit injunctions targeting foreign arbitration proceedings.
Responses to the Russia/Ukraine Crisis – Sanctions Update No. 6
2 March 2023
It is now over a year since Russia first invaded Ukrainian territory and countries in the West and beyond began imposing tough new financial and other sanctions on the Russian regime and its supporters. In recent months it has been the reduction of, and in some cases, outright ban on, the importation of oil and gas that has been the most serious and impactful action taken by the G7 and allied countries.
In this update to our earlier articles in this series, we look at the major recent developments in the UK, EU and U.S. sanctions programmes and consider their impact.
Responses to the Russia/Ukraine Crisis - Sanctions Update No. 5
26 October 2022
The purported annexation by Russia of four Ukrainian oblasts was met with condemnation by the United Nations and the announcement of a new round of sanctions on Russian entities, individuals and goods by many countries, including the UK, EU and U.S. Acting together, the G7 states also have agreed to cap the price they will pay for Russian-origin crude oil and petroleum products in an effort to reduce the income Russia is receiving for its oil.
In our fifth update we look at recent major developments in the UK, EU and U.S. sanctions programmes and consider their impact.
UK Sanctions reporting: Cryptoasset exchange and custodian wallet providers now subject to enhanced sanctions reporting requirements; firms’ annual frozen assets reports due soon
7 September 2022
Reporting requirements under UK sanctions regimes, including those of Russia and Belarus, have been extended recently to include cryptoasset exchange providers and custodian wallet providers. These businesses must now comply with enhanced sanctions reporting obligations under the Regulations. Meanwhile, OFSI has just sent out its annual request to all UK businesses for sanctions information - and the deadline is fast approaching.
UK Government provides details on Russian oil shipping ban and price cap
22 September 2022
In a recent sanctions briefing to the business sector, the UK Government provided further details on anticipated measures to implement the ban on maritime services and Russian oil price cap announced by G7 Ministers earlier this month.
Six months on – Changes to international business since Russia’s invasion of Ukraine
23 August 2022
It is unlikely that, when Russia invaded Ukraine six months ago, international companies would have anticipated the extent to which their own economic and commercial activities would be affected by the political reaction to the crisis. Global responses to the war have elevated geo-political tensions and stringent economic sanctions have had a dramatic impact on a number of key sectors and industries.
In this article we look at how “business as usual” has changed in the six months since the crisis began, focusing on energy, finance and consumer business.
Responses to the Russia/Ukraine Crisis – Sanctions Update No. 4
3 August 2022
The crisis in Ukraine is showing no signs of abating and governments across the globe are ramping up their sanctions and designations. With financial markets already subject to stringent restrictions, attention has focussed on expanding trade and services sanctions. There is now virtually no economic or business sector which is not affected in some way by the impact of international restrictions.
Responses to the Russia/Ukraine Crisis – Sanctions Update No.3
12 June 2022
It is now over 100 days since Russian military action began in Ukraine, during which time Western governments and their allies have imposed raft after raft of economic and trade restrictions on Russian-owned companies, banks, industries and the individuals supporting the Kremlin. In our third update on sanctions developments across the UK, U.S. and Europe we track the most recently imposed restrictions and look ahead at what may yet be introduced.
Responses to the Russia/Ukraine Crisis - Sanctions Update No. 2
29 April 2022
Despite global calls for Russia to cease its aggressive activities, the crisis in Ukraine is showing no sign of ending any time soon. The UK, EU, U.S. and other countries have been ratcheting up their responses and imposing a succession of sanctions and restrictions on the Russian financial and trade sectors, as well as targeting individuals, including politicians, oligarchs and others connected to the Government of Russia.
In this update to our article of 3 March 2022, we look at the major sanctions developments in the UK, EU and U.S. since then and consider their impact.
The UK strengthens its response to money laundering and corruption with the Economic Crime (Transparency and Enforcement) Act 2022
22 March 2022
After passing through Parliament in double-quick time, the Economic Crime (Transparency and Enforcement) Act 2022 received Royal Assent on 15 March 2022. While the Act’s introduction has been hastened by the Russian invasion of Ukraine, it is part of the UK government’s continuing push to increase transparency in financial dealings and tackle corruption more widely.
The Russia/Ukraine Crisis - Sanctions Update
3 March 2022
As the conflict in Ukraine has developed, so has the package of sanctions imposed by governments across the world on Russian entities and individuals. The need to stay on top of the legal situation across jurisdictions is critical, particularly for businesses with international operations involving parties that may now be subject to economic restrictions. However, the situation is constantly changing and not all sanctions regimes are moving in parallel.
In this briefing we set out the current position in the UK, EU and U.S., with some background as to how we got here.
The long arm of sanctions indictments
1 March 2022
The General Court of the European Union dismissed an application by Pilatus Bank plc to annul a decision of the European Central Bank which withdrew Pilatus Bank's banking licence. The Court held that the ECB could withdraw Pilatus Bank's authorisation on the basis of the “good repute” of its shareholder who had been arrested in the United States on charges of breaching US sanctions. Banks and other financial institutions should note the direction of travel set by the ECB, particularly in light of the recent raft of new sanctions against Russia.
