Acuant Compliance Sanctions Update 5.9.22: The Russia-Ukraine Crisis
May 9, 2022
New sanctions packages are still being announced as part of ongoing attempts by global leaders to halt Russia’s continued aggression against Ukraine. To learn more about previously imposed sanctions, read our introductory sanctions blog and our 3.7.22, 3.21.22, 4.8.22 and 4.28.22 sanctions updates.
Continue reading for some of the latest sanctions.
Current Snapshot of Sanctions as of 5.5.2022
European Union: The EU’s newly proposed—but not as of yet approved—sixth sanctions package was announced on May 4th. Targeting Russian entities and oligarchs, the EU announced that Russian individuals, residents and companies will no longer be able to own property in the European Economic Area and Switzerland if they do not hold EU citizenship or residency permits.
The EU wants to ban Russia’s largest bank from the SWIFT communication system and two other Russian banks from the SWIFT payments system. The bloc is also planning to deny broadcasting capabilities in every form throughout the region for three major Russian-state broadcasters.
As part of this sanctions package, the EU is expected to include sanctions—including travel bans and the freezing of assets—against President Putin’s suspected girlfriend, Alina Kabaeva, and the head of the Russian Orthodox Church.
The EU also announced its intention to halt the import of Russian oil by the end of the year, though it’s facing some opposition, particularly about the rapid timeline, by EU states like Hungary that are more dependent on Russian oil and had previously been granted a longer period of transition to move away from their dependency on Russian oil.
United Kingdom: As of May 5th, the UK announced a ban on the exports of certain services to Russia. In other words, Russia will no longer be able to access British services such as public relations, accountancy and more, all of which make up 10% of Russia’s imports for these sectors. For the moment, lawyers and real estate agents are not facing any restrictions on who they work with, but further sanctions are expected. Legislation has also been introduced as part of sanctions against Russian-state media.
Norway: Though not part of the EU, Norway has adopted similar sanctions against Russia. As of May 7th, Russian trucks and ships, excluding shipping vessels, will no longer be allowed in Norway’s ports or across its borders—except for special cases such as the Norwegian archipelago, Svalbard, in accordance with the Svalbard Treaty. Norway has also restricted coal and jet fuel imports from Russia; expanded its restrictions on goods that can be exported to Russia, aligning with the EU sanctions list; and banned the support for Russian companies, including state-sponsored media.
Current Snapshot of Sanctions as of 5.9.2022
United States: After a virtual meeting with G7 leaders and Ukraine’s President Zelenskyy on Sunday, May 8th, President Biden announced new sanctions against Russia. The US has sanctioned three Russian-state media outlets, prohibiting American advertisers from working with those television networks, and restricting the export of relevant broadcasting technology and equipment. Over 2,600 visa restrictions have been applied to Russian and Belarusian officials, including military officials, and sanctions have been placed on executives at major Russian banks and financial institutions.
The US is banning the availability of American accounting, marketing and management-consulting services to Russia as part of efforts to punish Russian companies attempting to evade sanctions. As of now, legal services are not facing similar export restrictions, but this reprieve is not guaranteed and may be revaluated at a later date. Restrictions have also been placed on American exports relating to Russia’s industrial sector; this includes but is not limited to industrial engines, motors, wood products, and bulldozers. The Biden administration announced that the US is continuing its monetary, military and humanitarian aid to Ukraine.
United Kingdom: On May 9th, the UK announced new export bans and import tariffs against Russia and Belarus, particularly for Russian sectors that are dependent on goods from the UK. Tariffs have been added for the importing of platinum and palladium, while export bans include machinery, plastics, and chemicals.
More so, the Department for International Trade reports that with this new sanctions package, the UK has thus far placed restrictions on over 96% of goods imported from Russia into the region and has placed some form of restrictions on over 60% of goods being exported to Russia from the UK.
European Union: The EU has yet to approve its recently announced sanctions package due to opposition against its intended oil embargo from countries—primarily Hungary, Slovakia, the Czech Republic and Bulgaria—that are demanding more time to phase out their dependency on Russian oil. Slovakia and Hungary were originally given till the end of 2023 to do so, with edits to the current embargo suspected to now allow until mid-2024 and the end of 2024 to do so, respectively. Additional discussions are expected to take place soon as part of efforts to approve this new package.
The importance of sanctions screening in real time continues to be at the forefront as companies around the world must adapt to evolving sanctions to stay compliant.
Read about the latest sanctions against Russia in our new The Current State of Sanctions: May 2022 eBook.