Legal Advice on Sanctions and Counter-Sanctions

Analysis of sanctions in relation to a specific type of business, legal support for business under sanctions

Lodging a complaint on actions (inactions) of a governmental customer and other persons in the controlling body according to the Law No 44-FZ

In a short time, the concept of “sanctions” entered the business circulation of the modern world, which very quickly made adjustments to the conduct of not only Russian, but also foreign business. The concept of “sanctions” for the international community is not new, but for the Russian business, the imposition of sanctions has become in some areas a difficult obstacle to overcome for further activities. At the same time, the legislation in this area is changing rapidly, trade chains are collapsing every day, but in order for a business to continue to exist in the current economic realities, it is necessary to understand the current situation, adapt to it, including in the legal field.

Sanctions are a measure of influence in the form of certain restrictions in order to influence the state as a whole and its citizens in particular. Sanctions can be imposed by international organizations and individual states on various issues. Counter-sanctions are introduced as a response to the imposed sanctions.

The most effective sanctions are considered to be economic sanctions, in accordance with which trade and financial transactions are limited or completely stopped, which inextricably leads to a decrease or complete cessation of entrepreneurial activity. Such sanctions are intended to isolate the country from foreign economic activity. Examples of economic sanctions are:

  1. Disconnecting a country from an international system (for example, from SWIFT) often does not exclude the possibility of using such a system, but leads to significant difficulties for making international transfers.
  2. Freezing the assets of the country and companies on the territory of other states, which leads to the inability to use such assets.
  3. Imposition of an embargo on certain goods and services.
  4. Other types of economic sanctions that lead to deterioration of interaction between participants in foreign economic activity.

Often, the imposed sanctions lead to a variety of negative consequences, for example:

  1. Restrictions on specific subjects. Such restrictions prevent such persons, for example, from entering a country or a number of countries.
  2. Restrictions imposed in some industry, for example, closing access to the banking market.

The activity of entrepreneurs in the context of sanctions and counter-sanctions brings an additional burden to businesses in the form of studying regulatory documents in this industry and bringing business activities in line with current realities. The task of bringing the business to the current regulatory documents in such conditions is sometimes not an easy task, in most cases, which is implemented with the help of qualified and experienced lawyers.

Also, an important element of sanctioning activities for entrepreneurs is getting into the sanctions lists, which leads to a restriction of business activity in one way or another. But the participation of a qualified lawyer in the business process will avoid not only unpleasant consequences, but also minimize possible sanctions risks. Sanction risks represent the possibility that sanctions may be imposed on a counterparty or its founder, including an increase in the likelihood of being included in the sanctions lists.

If there is a possibility of sanction risks, it is necessary to pay attention to the already concluded contracts and take all measures to minimize adverse consequences and punitive measures on the part of counterparties. At the same time, clear conditions should be introduced into the newly concluded contracts on the possibility of their termination with minimal negative consequences. At the same time, the conclusion of new contracts should also be accompanied by verification of counterparties to reduce sanctions risks.

In order to ensure the safe functioning of business processes under the conditions of sanctions, in most cases, entrepreneurs are recommended to conduct a sanctions audit of the activities of companies and develop a sanctions policy for further work. Often, the procedure for conducting a sanctions audit depends on the type of activity of the company, but in general it is an analysis of the company's activities and consists of a number of the following measures:

  1. Legal check of the company’s suppliers and clients.
  2. Legal expertise of contracts.
  3. Possibility of changing or terminating contracts.
  4. Checking the imposed restrictions on the activities of the company and counterparties.
  5. Identification of measures of responsibility for violation of sanctions restrictions.

Conducting a sanction audit involves a thorough study of the company’s activities within the framework of the current sanctions restrictions, and taking into account the dynamically changing legal field in this area, sometimes holding such an event requires not only deep knowledge in this area, but also extensive experience and practice.

Conducting a sanctions audit allows you to assess possible risks and minimize them. At the same time, such an event often results in the development of a sanctions policy in the organization to minimize risks and eliminate their occurrence.

Taking into account the fact that doing business under sanctions for Russian business is a relatively new area, the participation of a qualified and experienced lawyer in this area allows you to bring all the activities of the organization to the current legal norms in the sanctions area with minimal costs and possible risks.

Legal services

  1. Legal support to clients on sanctions and counter-sanctions
  2. Analysis of sanctions in relation to a specific type of business
  3. Legal support for business under sanctions
  4. Preparation of the necessary documentation
  5. Legal assistance to clients in obtaining state support for business under the imposed sanctions

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