Sanctions on Russia and their Impact on Global Supply Chains

The recent sanctions imposed on Russia following its invasion of Ukraine are swiftly reverberating through global supply chains. The disruption is noticeable in the trade of commodities and industrial inputs originating from both Russia and Ukraine, including wheat, oil, nickel, and palladium, leading to considerable price hikes. Additionally, transportation costs are witnessing a sharp increase. In this blog, we will analyze the immediate and long-term effects of sanctions on Russia on global supply chain operations, exploring how this crisis might expedite enduring trends in supply chain management. Let’s start with looking at the recent sanctions that have been imposed on Russia for its Ukraine invasion.

Sanctions on Russia: A Country-by-Country Timeline

Sanctions on Russia by European Union

Jan 3 2023

• Adds Russian diamond-mining company PJSC Alrosa and its CEO, Pavel Alekseevich Marinychev, to the sanctions list.
• Complements an import ban on Russian diamonds.

Dec 18 2023

• Adopts 12th package of sanctions against Russia, encompassing import/export bans and measures to combat circumvention.
• Adds around 140 individuals/entities, including those in the Russian military industrial complex, IT sector, and media companies.

Sep 13 2023

• Extends sanctions until March 15, 2024, against individuals/entities connected to Russia's invasion of Ukraine.

June 23 2023

• Adopts 11th package of sanctions against Russia, including measures to prevent circumvention.
• Bans transit via Russia of more goods and technology and adds entities supporting Russia's military-industrial complex.

April 13 2023

• Imposes restrictive measures on Russia's The Wagner Group and RIA FAN.

March 13 2023

• Extends sanctions until September 15, 2023, against individuals/entities in response to Russia's invasion of Ukraine.

Feb 25 2023

• Imposes 10th package of sanctions against Russia, targeting individuals/entities in politics, military, and media.

Feb 5 2023

• Imposes a ban on purchases of Russian gasoline and other refined petroleum products.

Jan 27 2023

• Extends sanctions targeting trade, finance, and technology industries in Russia until July 31, 2023.

Dec 16 2022

• Adopts a ninth package of sanctions on Russia.
• Imposes a full transaction ban on JSC Russian Regional Development Bank.
• Freezes assets of Credit Bank of Moscow and Far Eastern Bank.
• Prohibits new mining investments in the country.
• Suspends the broadcasting licenses of media outlets NTV/NTV Mir, Rossiya 1, REN TV, and Pervyi Kanal.

Dec 7 2022

• Proposes sanctions against three additional Russian banks.
• Imposes a full transaction ban on JSC Russian Regional Development Bank.
• Part of the ninth package of sanctions targeting almost 200 individuals and entities.
• Introduces economic measures against the Russian energy and mining sector.
• Includes a ban on new mining investments in Russia.
• Takes four additional Russian channels off the air and other distribution platforms.

Dec 3 2022

• Sets a $60-per-barrel price cap for crude oil and petroleum oils from Russia.
• Applies to oils obtained from bituminous minerals originating from Russia.

Oct 6 2022

• Extends the ban on Russian steel products.
• Now includes semi-finished steel within the prohibited items.
• The European Council also announces a ban on the export of coal, encompassing coking coal.

July 21 2022

• Prohibits the purchase, import, or transfer of gold and jewelry originating from Russia.
• Includes Sberbank of Russia among the entities added to the sanctions list.

Jun 3 2022 Swift Sanctions:

• Cuts off Sberbank of Russia, Credit Bank of Moscow, and Russian Agricultural Bank from the Swift financial messaging system.
• Sanctions NCO JSC National Settlement Depository, hindering its plans to service eurobonds.

Crude Oil Import Ban:

• Prohibits the import of crude oil and certain petroleum products from Russia into the EU.

Adoption of Sixth Package:

• Adopts a sixth package of sanctions to exert economic pressure on Russia.

May 25 2022

Criminalization Proposal:

• Proposes criminalizing violations of EU sanctions across the bloc.

Asset Confiscation:

• Aims to enable effective confiscation of assets belonging to individuals and entities subjected to sanctions.

May 4 2022

• European Commission President Ursula von der Leyen announces the sixth package of sanctions against Russia.
• Inclusion of measures to remove Sberbank of Russia, the largest Russian bank, and two other major banks from the Swift financial messaging system.

Apr 8 2022 Bank Transaction Ban:

• Imposes a full transaction ban on four significant Russian banks: VTB Bank PJSC, PJSC Sovcombank, Joint-Stock Commercial Bank Novikombank, and Otkritie Financial Corp. Bank. Market Share Impact:
• These banks collectively represent 23% of the market share in Russia's banking sector.
• Extended Prohibitions:
• Extends prohibitions on deposits to cryptocurrency wallets.
• Extends the ban on the sale of banknotes and transferable securities denominated in any official currencies of the EU member states to Russia and Belarus.

Apr 5 2022 Import Ban on Russian Coal:

• Proposes a ban on the import of Russian coal. Full Transaction Ban on Key Banks:
• Proposes a full transaction ban on four significant Russian banks, including VTB Bank PJSC. Ban on Vessel Access:
• Proposes a ban on Russian vessels and Russian-operated vessels from accessing European ports. Ban on Road Transport Operators:
• Proposes a ban on Russian and Belarusian road transport operators.

Mar 16 2022 Sanctions on Executives:

• Sanctions Rostelecom PJSC President Mikhail Oseevsky, Yandex NV Deputy CEO Tigran Khudaverdyan, and VK Co. CEO Vladimir Kiriyenko. Travel Restrictions:
• Imposes travel restrictions on the mentioned executives, preventing them from traveling to the EU. Business Restrictions:
• Prevents the sanctioned executives from doing business with companies that operate in the EU.

Mar 15 2022

• Implements a ban on the supplies of energy-related equipment, technology, and related services to Russia.
• Enforces a ban on new investments in the Russian energy sector.
• Tightens export restrictions on individuals connected to technology that could contribute to Russia's defense and security sector.

Mar 2 2022 Media Broadcast Suspension:

• Suspends broadcast activities of Russian state-owned or affiliated media Sputnik and RT/Russia Today in the EU, including search results and social media. Swift Disconnection:
• Announces the disconnection of Russian banks from the Swift bank network, including Otkritie Bank, Novikombank, PJSC Promsvyazbank, Bank Rossiya, Sovcombank, the State Development Corp. VEB.RF, and VTB Bank. Euro-Denominated Banknote Ban:
• Imposes a ban on the sale, supply, transfer, or export of euro-denominated banknotes to Russia. Central Bank Transactions Ban:
• Implements a ban on transactions with the Russian central bank.

Feb 28 2022

• Imposes capital market restrictions on several Russian banks, including Alfa-Bank, Otkritie Financial Corp. Bank, Bank Rossiya, and Promsvyazbank.

Feb 24 2022

• Imposes export controls on software, equipment and technology.

Feb 23 2022 Targeted Measures:

• Imposes targeted restrictive measures against 27 high-profile individuals and entities.
• Applies measures against all 351 members of the Russian State Duma.
• Introduces restrictions on economic relations with the breakaway regions of Donetsk and Luhansk. Sectoral Prohibition:
• Implements a sectoral prohibition on financing the Russian Federation, its government, and the Central Bank of Russia. Asset Freezing:
• Freezes assets of specific entities, including Bank Rossiya, Promsvyazbank, and VEB.RF.

Sanctions on Russia by the United States

Dec 22 2023

• Authorizes US sanctions on foreign financial institutions supporting Russia's military-industrial base.
• Sanctioned banks may face full blocking sanctions or conditions on their US correspondent accounts.
• Empowers the US Treasury to ban imports of products originating in Russia but processed in other countries.

Dec 12 2023

• Imposes sanctions on over 250 individuals/entities in Russia's energy, production, financial, and mining sectors.
• Targets third-country networks allegedly facilitating sanctions evasion.

Dec 5 2023

• Unveils new sanctions targeting a network involved in procuring military-use electronics for Russia.
• Includes entities from Russia, Belgium, Cyprus, Sweden, Hong Kong, and the Netherlands.

Nov 2 2023

• Targets Russia's military-industrial complex, future energy production, metals, and mining sector, and defense procurement with new measures.
• Includes sanctions on Russian lenders Russian Standard Bank and Absolut Bank (PAO) and brokerage PJSC SPB Exchange.
• Extends sanctions to Sistema Public Joint Stock Financial Corp., a diversified holding company involved in defense, finance, and technology.
• Addresses sanctions evasion by adding companies from China, Turkey, and the United Arab Emirates to the sanctions list.
• Specifically impacts the owner, developer, and operator of Arctic-2 LNG, a project set to export liquefied natural gas globally.

Sep 14 2023

• Introduces wide-ranging sanctions targeting Russian military-linked elites and industrial base.
• Targets automotive manufacturers, including JSC Avtovaz, Moskvich, and Sollers Public JSC.
• Imposes sanctions on United Metallurgical Co. OMK CJSC and Russian Copper Co.
• Extends sanctions to Russian lenders AK Bars JSCB and Sinko Bank Ltd.
• Includes sanctions on Russia-based wealth management consulting, auditing, and investment companies.
• Targets certain companies based in Turkey, Finland, and the United Arab Emirates.

Aug 11 2023

• Sanctions imposed on Alfa Group founder Mikhail Fridman and supervisory board members Petr Aven, Alexey Kuzmichev, and German Khan.
• These individuals were previously sanctioned by Australia, Canada, the European Union, New Zealand, and the UK.
• The sanctions follow Russia's invasion of Ukraine.
• Additional sanctions imposed on the Russian Union of Industrialists and Entrepreneurs.

Jul 20 2023

• Sanctions imposed on Russia-based lenders: JSC Commercial Bank Solidarnost, JSC Tinkoff Bank, CB LOCKO-Bank JSC, Unistream Commercial Bank JSC, and Petersburg Social Commercial Bank JSC.
• Targeted individuals and officials in Russia impacted by the sanctions.
• High-technology industries and mining companies in Russia, facing sanctions.
• Specific Kyrgyzstan-based companies were also included in the sanctions.

Apr 12 2023

• Announces sanctions on individuals and entities in 20 jurisdictions, including a new Russian private military company.
• Sanctions a China-based firm providing satellite imagery of locations in Ukraine.
• Russia-controlled International Investment Bank (IIB) in Hungary faces US sanctions, along with three current or former IIB executives and IIB's fully owned subsidiary in Russia, JSC IIB Capital.

Feb 7 2023

• US Treasury Department to lift sanctions on Sberbank of Russia's former Kazakh unit, Subsidiary Bank Sberbank of Russia JSC.
• Effective March 6, the decision follows ownership changes at the Kazakh lender.
• Sberbank sold the unit to Kazakhstan's Baiterek National Managing Holding in 2022.
• Subsidiary Bank Sberbank of Russia JSC changes its name to Bereke Bank after the sale.

Dec 15 2022

• Sanctions imposed on Russian businessman Vladimir Potanin, his immediate family members, and his company, Interros Co.
• Also targeted are Russian lender PJSC Rosbank, acquired by Potanin in 2022.
• Seventeen subsidiaries of VTB Bank PJSC are included in the new sanctions.

Sep 30 2022

• Sanctions imposed on 14 individuals associated with Russia's military-industrial complex.
• 278 members of the Russian legislature involved in the referendums held in Ukraine also face sanctions.
• Russian central bank Governor Elvira Nabiullina is among the sanctioned individuals.

Jun 28 2022

• Sanctions 70 entities, primarily linked to Russia's defense industry, including state defense entity Rostec.
• Imposes sanctions on 29 Russian individuals.
• Sanctions an additional 45 entities and 29 individuals.
• Designates Russian Federation military units and redesignates Russia's Federal Security Service.
• Announces measures to impose visa restrictions, including on more than 500 Russian Federation military officers and Russian Federation officials.

Jun 6 2022

• Issues guidance clarifying that earlier sanctions, prohibiting the purchase of new debt and equity securities issued by Russian entities, also apply to existing securities trading on secondary markets.

May 8 2022

• Announces new sanctions on Russia, targeting executive board members of Sberbank and members of Gazprombank JSC's board of directors.
• The new sanctions also target JSC Bank Moscow Industrial Bank, among other entities.
• Additionally, three of Russia's top state-owned and/or controlled TV networks have been added to the sanctions list: JSC Channel One Russia, television station Russia-1, and JSC NTV Broadcasting Co.
• The move aims to block the sale of equipment to the broadcasters and cut off any US-originated advertising revenue from being funnelled back to the Russian state.

Apr 20 2022

• Designates Russia-based Transkapitalbank and a network of more than 40 individuals and entities led by Russian oligarch Konstantin Malofeyev.
• These designations are made due to their involvement in attempts to evade sanctions.
• The designated individuals include executives linked to Russia-based Otkritie Financial Corp. Bank.

Apr 7 2022

• Sanctions Russian state-owned diamond giant PJSC Alrosa-Nyurba, blocking all of its property and interests in the US.

Apr 7 2022

• Announces full blocking sanctions on Sberbank and Alfa-Bank.
• The sanctions freeze any of the two banks' assets touching the US financial system.
• Prohibits US persons from doing business with Sberbank and Alfa-Bank.
• Bans new investment in Russia as part of the sanctions.
• Imposes full blocking sanctions on key companies owned by the Russian state, with their names to be disclosed later.
• Extends full blocking sanctions against top Russian officials and their family members.
• Includes President Putin's adult children and Foreign Minister Lavrov's wife and daughter in the sanctions list.

Mar 31 2022

• Imposes new sanctions targeting Russia's technology sector.
• Addresses efforts to evade or bypass sanctions activity in the technology sector.
• Adds 21 entities and 13 individuals to the sanctions list.
• Includes Mikron, Russia's largest chipmaker and exporter of microelectronics, in the sanctions.
• Targets supercomputer company T-Platforms among the sanctioned entities.

Mar 24 2022

• Sanctions Russia's defense industry, the Russia Duma and Sberbank's CEO.

Mar 15 2022

• Sanctions Russians connected to human rights violations along with the "corrupt" leader of Belarus.

Mar 11 2022

• Sanctions Kremlin elites, oligarchs, and Russia's political and national security leaders.
• Imposes measures against North Korean weapons of mass destruction.
• Targets North Korean ballistic missile programs with sanctions.

Mar 8 2022

• Bans imports of Russian oil, gas and other energy.

Mar 3 2022

• Sanctions numerous Russian elites and their family members.
• Targets Yevgeniy Prigozhin, the financier of the Internet Research Agency, with sanctions.
• Sanctions Alisher Usmanov, holding a 49% ownership of USM Holdings Ltd., with significant interests in the telecom and IT sectors.
• Targets information outlets controlled by Russian intelligence services with sanctions.

Feb 28 2022

• Blocks transactions with the Central Bank of Russia.

Feb 26 2022

• Ban select Russian banks (unnamed at this point) from the Swift financial messaging system and impose restrictive measures on the Central Bank of Russia.

Feb 25 2022

• Sanctions President Vladimir Putin and Minister of Foreign Affairs Sergei Lavrov.

Feb 24 2022

• Issues correspondent and payable-through account sanctions on Sberbank and its subsidiaries.
• Imposes full blocking sanctions on VTB Bank, Otkritie Financial Corp. Bank, Sovcombank, and Novikombank, along with their subsidiaries.
• Freezes US assets and prohibits US persons from dealing with the sanctioned banks.
• Introduces new debt and equity restrictions on Sberbank, Alfa-Bank, Credit Bank of Moscow, Gazprombank, Russian Agricultural Bank, and other Russian companies.

Feb 22 2022

• Sanctions Promsvyazbank, VEB.RF and their subsidiaries.

Sanctions on Russia by United Kingdom

Dec 15 2023

• Introduces a new set of sanctions against Russia, targeting specific lenders and imposing restrictions on correspondent banking.
• Prohibits correspondent banking relationships for certain Russian banks, including JSC Bank Novikombank, VTB Bank PJSC, Gazprombank JSC, Russian Agricultural Bank, PJSC Rosbank, and JSC Tinkoff Bank.
• Imposes an asset freeze on JSC Bank Novikombank, accompanied by trust services sanctions and prohibitions on correspondent banking.
• Extends the ban on correspondent banking relationships to other major Russian banks, amplifying the impact on the country's financial institutions.
• Includes a ban on the import of certain Russian metals, adding another layer to the sanctions to curtail specific sectors of the Russian economy.

Dec 6 2023

• Additional sanctions imposed, targeting 46 individuals and groups directly linked to Russia's military supply chain
• Sanctions aim to disrupt and penalize entities involved in supporting Russia's military activities through the supply chain.

Nov 8 2023

• Sanctions are imposed on 29 individuals and entities involved in Russia's gold, oil, and strategic sectors.
• The targeted sanctions extend to major Russian gold producers, Nord Gold PLC and Highland Gold Mining Ltd.
• Russian oligarchs Vladislav Sviblov and Konstantin Strukov face repercussions through the imposed sanctions.
• The sanctions also encompass entities operating outside Russia, such as gold trader Paloma Precious DMCC and energy trading company Paramount Energy And Commodities DMCC, both based in the United Arab Emirates.
• The UK's National Crime Agency issues a red alert, highlighting common evasion techniques in the gold industry and emphasizing the importance of reporting suspicious activities, including potential sanctions breaches.

Aug 8 2023

• Sanctions are imposed on businesses in Russia, Turkey, and Dubai, along with individuals in Slovakia, Switzerland, and Iran.
• The primary objective is to hinder Russia's access to foreign military equipment.
• Three Russian companies operating in the electronics sector face sanctions, contributing to the broader restrictions.
• Turkey-based entities Turkik Union and Azu International are targeted for their involvement in facilitating Russia's access to military equipment.
• Dubai-based Aeromotus Unmanned Aerial Vehicles Trading LLC is subjected to sanctions in connection with supporting Russia's military capabilities.
• The sanctions extend to include Belarusian defense organizations as part of the comprehensive measures.

Jul 20 2023

• Russian investor and Tinkoff Bank founder Oleg Tinkov is removed from the sanctions list.
• The decision follows a plea by British billionaire Richard Branson advocating for Tinkov's removal from sanctions.
• Oleg Tinkov renounced his Russian citizenship and divested his stake in Tinkoff Bank's parent company, TCS Group Holding PLC, in 2022.
• This move aligns with a broader effort to address specific cases based on changed circumstances, such as Tinkov's altered citizenship and financial disassociation from Russian entities.

Jun 19 2023

• Introduces legislation enabling sanctions on Russia to be maintained until Moscow pays compensation to Ukraine. The measures also require that sanctioned individuals disclose their UK assets and enable them to donate frozen funds toward the reconstruction of Ukraine.

Jun 8 2023

• Sanctions against Belarus in response to its facilitation of Russia's invasion of Ukraine.
• Sanctions include a ban on the importation of gold, cement, wood, and rubber from Belarus to the UK.
• Export of banknotes from the UK to Belarus is also prohibited as part of the measures.
• The sanctions aim to curb efforts to circumvent existing sanctions against Russia, with a focus on restricting Belarusian access to UK financial markets.
• The move reflects the UK's commitment to addressing support for Russia's actions in Ukraine and preventing the evasion of international sanctions.

May 18 2023

• Imposes ban on imports of Russian diamonds, copper, aluminum and nickel.

Apr 12 2023

• The UK introduces new measures targeting financial networks facilitating the circumvention of sanctions by Russian billionaires.
• Two Cypriot professionals are specifically targeted for their alleged support of Russian billionaires Roman Abramovich and Alisher Usmanov.
• The sanctions extend to entities associated with Alisher Usmanov's financial network, including companies such as USM, Curzon Square Ltd., and Hanley Ltd.
• The measures are aimed at curbing attempts to bypass sanctions and ensuring greater scrutiny of financial activities linked to high-profile Russian individuals.
• This move underscores the UK's commitment to disrupting networks involved in evading international sanctions against Russia.

Feb 24 2023

• Sanctions include Russian banks PJSC MTS Bank, PJSC Bank Uralsib, Bank Zenit Public JSC and Bank Saint-Petersburg PJSC.

Feb 8 2023

• Unveils fresh sanctions targeting six entities providing military equipment for Russia's invasion of Ukraine, eight individuals and a group connected to financial networks associated with Kremlin elites.

Nov 30 2022

• Unveils a new package of 22 sanctions targeting officials involved in mobilization to fight Russia's war in Ukraine.

Sep 26 2022

• A total of 92 sanctions are imposed in response to the referendums held by Russia, which resulted in the annexation of four regions of Ukraine.
• The sanctions specifically target top Russian officials who played a role in enforcing the controversial vote.
• Oligarchs with a combined global net worth of £6.3 billion are included in the sanctions, reflecting a comprehensive approach to address financial interests associated with the events in Ukraine.
• The list extends to 49 executives from major Russian financial institutions, including Gazprombank (Joint-stock Co.), Sberbank of Russia, and Sovcombank.
• This extensive set of sanctions aims to hold accountable individuals and entities involved in actions that are deemed as undermining Ukraine's sovereignty.

May 13 2022

• New sanctions are announced, targeting friends, family members, and confidants of Russian President Vladimir Putin.
• Among the individuals facing sanctions is Alina Kabaeva, who is alleged to have a close personal relationship with President Putin.
• Mikhail Klishin, an executive at Bank Rossiya, is also listed among the sanctioned individuals.
• These sanctions extend beyond political figures and directly impact individuals associated with Putin, reflecting a strategy to target personal networks linked to the Russian leadership.
• The measures aim to exert pressure on Putin's inner circle and associates, signaling a broader approach to address both political and financial ties.

May 9 2022

• Announces new import tariffs on goods including platinum and palladium and plans export bans on chemicals, plastics, rubber and machinery.

May 4 2022

• Bans accountancy, management consultancy and public relation services exports to Russia and imposes sanctions on individuals in Russia's media industry.

Apr 13 2022

• Sanctions 206 individuals, including Gazprombank JSC Vice President Sergey Fursenko and six oligarchs.

Apr 6 2022

• Assets of Sberbank and Credit Bank of Moscow are frozen, marking a significant financial impact on these key Russian banks.
• A ban on new investments in Russia is imposed as part of the sanctions, reflecting a commitment to restrict financial inflows into the country.
• A pledge is made to eliminate dependency on Russian coal and oil by the end of 2022, signaling a strategic move toward energy independence.
• Further measures target Russian strategic industries and state-owned enterprises, including a ban on imports of iron and steel products.
• Eight additional oligarchs engaged in these industries face sanctions, indicating a broader effort to curb the influence of wealthy individuals associated with key sectors of the Russian economy.

Mar 24 2022

• Issues 65 new sanctions against key industries including Russian Railways, defense contractor JSC Kronshtadt Group and six additional banks.

Mar 18 2022

• Revokes RT's license to broadcast in the UK.

Mar 15 2022

• Expands sanctions to include a number of individuals and entities, including the Internet Research Agency.

Mar 3 2022

• Bars Russian aviation and space companies from insuring and reinsuring their risks in the country.

Mar 2 2022

• Places export ban on critical-industry technology.
• Sanctions Sberbank, prohibiting the bank from carrying out correspondent banking and sterling clearing transactions.

Feb 28 2022

• Freezes assets of VEB.RF, Otkritie and Sovcombank.

Feb 24 2022

• Freezes assets of VTB Bank.

Feb 22 2022

• Freezes assets of Black Sea Development and Reconstruction Bank, Industrial Savings Bank, Genbank, Bank Rossiya and Promsvyazbank

Sanctions on Russia by Australia

May 19 2023

• Australia introduces new financial sanctions targeting three individuals and 21 entities, broadening the scope to include key players in various sectors.
• Russian petroleum company Rosneft, gold company Polyus PJSC, and steel company Severstal PJSC are among the entities directly affected by the sanctions.
• The measures extend to Russian lenders, with PJSC MTS Bank, PJSC Bank Uralsib, PJSC Ural Bank for Reconstruction and Development, Bank Zenit Public JSC, and Bank Saint-Petersburg PJSC facing financial restrictions.
• The move underscores Australia's commitment to apply financial pressure on entities spanning multiple industries, aligning with efforts to exert economic leverage in response to geopolitical developments.

Feb 24 2023

• Australia implements additional targeted financial sanctions on a significant scale, affecting 90 individuals and 40 entities.
• The sanctions specifically target Russian ministers holding key responsibilities in areas such as energy, natural resources, industry, education, labor, migration, and health.
• This broad and comprehensive approach aims to exert financial pressure on individuals and entities linked to critical sectors, aligning with Australia's strategy to respond robustly to geopolitical developments and address concerns related to Russia's actions.

Dec 2 2022

• Agrees to cap the price of Russian seaborne crude oil at $60 per barrel.

Nov 4 2022

• Establish a fixed — rather than a floating — price when they finalize a price cap on Russian oil later this month.

Mar 18 2022

• Sanctions Sberbank, Gazprombank, VEB.RF, VTB Bank, Russian Agricultural Bank, Sovcombank, Novikombank, JSC Alfa-Bank and Credit Bank of Moscow.

Mar 16 2022

• The "Russian Elites, Proxies, and Oligarchs" task force is initiated with the objective of gathering and disseminating information.
• The primary goal is to facilitate concrete actions, including the implementation of sanctions, asset freezing, and pursuit of civil and criminal asset seizure.
• Additionally, the task force is mandated to explore avenues for criminal prosecution, underscoring a comprehensive approach to address the involvement of Russian elites, proxies, and oligarchs in activities of concern.
• This initiative reflects a coordinated effort to respond to geopolitical challenges and hold accountable individuals associated with actions contrary to international norms.

Mar 2 2022

• Adds the Central Bank of Russia and Otkritie Financial Corp. Bank to its sanctions list.

Feb 24 2022

• Place export controls on software, equipment and technology.

Feb 23 2022

• Sanctions Bank Rossiya, Promsvyazbank, VEB.RF and others.

Sanctions on Russia by Group of Seven

Dec 6 2023

• The Group of Seven (G7) economies collectively decide to implement a ban on Russian diamonds.
• The prohibition is set to take effect from January 1, 2024.
• This decision is part of a broader set of measures aimed at addressing concerns and repercussions associated with Russia's actions.
• The ban on Russian diamonds is indicative of the G7's commitment to utilizing economic measures to respond to geopolitical challenges.
• The move underscores a coordinated effort among major economies to impose restrictions on certain sectors as a response to geopolitical events.

May 19 2023

• The Group of Seven (G7) economies reaches a consensus to intensify measures aimed at preventing the evasion of price caps on Russian oil exports.
• Additionally, there is a commitment to thwart attempts by Russian banks to circumvent sanctions through the use of foreign subsidiaries.
• These measures signify a proactive stance by the G7 nations in addressing potential loopholes and ensuring the effectiveness of economic sanctions against Russia.
• The focus on countering evasion of price caps reflects the G7's dedication to maintaining economic pressure on Russia in response to geopolitical developments.
• The decision reflects a coordinated effort among major economies to enhance the impact of existing sanctions and maintain a unified approach in dealing with challenges related to Russia's actions.

Sanctions on Russia by Japan

Oct 7 2022

• Sanctions are applied to a total of 58 Russian individuals as part of punitive measures.
• Additionally, nine Russian entities face sanctions due to their involvement in activities related to the unilateral annexation of Donetsk, Luhansk, Kherson, and Zaporizhzhia.
• Specifically, 23 individuals are targeted with sanctions as they are deemed directly responsible for the aforementioned annexation.
• This collective action seeks to hold individuals and entities accountable for their roles in the annexation of specific regions, reflecting a strong stance against such actions.
• The sanctions are intended to serve as a deterrent and a form of punishment for those implicated in the unilateral annexation, demonstrating a commitment to address geopolitical challenges.

Jun 27 2022

• Bans the import of newly mined or refined gold.

Jun 7 2022

• Freezes the assets of Russian Agricultural Bank, Credit Bank of Moscow and Belarus-based Belinvestbank JSC.

Apr 11 2022

• New sanctions are approved, extending to key Russian financial institutions, Sberbank of Russia and JSC Alfa-Bank, with their assets subject to freezing.
• Measures are introduced to prohibit fresh investments in Russia, indicating a desire to limit financial support to the country.
• An initiative is announced to reduce dependency on Russia for energy resources, with specific plans to phase out and ban the import of Russian coal.
• These sanctions reflect a multi-faceted approach, targeting financial institutions and aiming to disrupt Russia's energy exports to exert economic pressure.
• The asset freeze is a punitive measure designed to impact the operations and financial stability of the targeted banks, signaling a strong response to Russia's actions.

Mar 3 2022

• The assets of four more Russian banks—VTB Bank, Sovcombank, Novikombank, and Otkritie Financial Corp. Bank—are frozen.
• This move intensifies financial restrictions, aiming to hinder the normal operations and economic activities of these institutions.
• By targeting additional banks, the sanctions broaden their impact on a larger segment of Russia's financial sector.
• Freezing assets is a significant measure that can lead to disruptions in the affected banks' ability to conduct business and manage their finances.
• The expansion of sanctions on these financial entities demonstrates a concerted effort to increase economic pressure on Russia.

Mar 1 2022

• Transactions with the Central Bank of Russia are restricted, affecting financial dealings and relationships with one of Russia's key financial institutions.
• Assets of VEB.RF, Promsvyazbank, and Bank Rossiya are frozen, limiting their ability to access and manage assets within the global financial system.
• The exclusion of select Russian banks from the Swift financial messaging system is a coordinated effort with Europe and the US to sever vital communication links in the international financial network.
• This measure aims to isolate Russian banks from global financial transactions, making it more challenging for them to operate on an international scale.
• The combined impact of these sanctions intensifies economic pressures on Russia, particularly within its banking and financial sectors.

Feb 24 2022

• Places export controls on software, equipment and technology.

Sanctions on Russia by Canada

Jul 20 2023

• Canada introduces new sanctions targeting individuals and entities connected to Russia's military-industrial complex, imposing restrictions on their international activities.
• Sanctions extend to individuals and entities in the Russian cultural and education sectors, reflecting a broad approach to impact various facets of Russian society.
• Tinkoff Bank, Bank Tochka, and Russia's Mir payment system face sanctions, limiting their ability to engage in international financial transactions.
• Mobile operators MTS and Megafon, along with telecommunication company Tele2, are among the entities facing sanctions, potentially disrupting their global operations.
• These sanctions contribute to a comprehensive international effort to isolate and pressurize Russia economically, affecting both its military and cultural spheres.

Apr 11 2023

• Canada unveils fresh sanctions against Russia, targeting specific individuals and entities involved in security operations, particularly linked to the Wagner Group.
• The aviation sector in Russia is also addressed through these sanctions, signaling a broader scope of measures against key sectors of the Russian economy.
• Simultaneously, Canada imposes additional sanctions on Belarus, including entities like the Belarusian central bank, Belarusbank, Priorbank Open JSC, JSC StatusBank, Belorussian-Russian Belgazprombank Joint Stock, and local units of Russian lenders VTB Bank PJSC, Sberbank of Russia, and State Development Corp. VEB.RF.
• These actions demonstrate Canada's commitment to applying pressure on both Russia and Belarus, targeting specific entities associated with their military and financial sectors.

Mar 10 2023

• Prohibits importing aluminum and steel products originating from Russia.

Feb 23 2023

• Canada introduces fresh sanctions, expanding the scope to target a significant number of individuals and entities connected to Russia's political and defense structures.
• Members of the lower house of Russia's parliament are among the 129 individuals facing sanctions, indicating a stance against key figures within the Russian political landscape.
• Additionally, seven senior managers at companies involved in Russia's defense industry are targeted, emphasizing measures against the military-industrial complex.
• In total, 50 entities are subject to these sanctions, reflecting Canada's commitment to applying pressure on various levels within Russia's political and economic spheres.

Feb 3 2023

• Canada announces targeted sanctions against Russia, addressing both individuals and entities.
• A total of 38 individuals are sanctioned, reflecting a focused effort to hold specific individuals accountable for their actions or affiliations.
• Simultaneously, 16 entities face sanctions, including MIA Rossiya Segodnya. This state-owned media company, uniting Russian-language information resources, is a strategic target in the sanctions, highlighting measures against entities involved in shaping public narratives.

Jun 27 2022

• Announces ban on the import of newly mined or refined golds

May 31 2022

• Imposes new sanctions targeting 22 individuals and four entities, including key Russian financial institutions and banks.

Apr 27 2022

• New sanctions were introduced, specifically targeting individuals associated with the People's Councils of the Luhansk and Donetsk People's Republics in the Donbas region of eastern Ukraine.
• The sanctions focus on 11 senior officials and 192 other members of these councils, addressing Russia's attempted annexation of these areas.
• This move signifies a commitment to hold accountable those involved in actions that undermine Ukraine's territorial integrity.

Apr 19 2022

• Announced additional sanctions against Russia, targeting 14 individuals including Russian central bank Governor Elvira Nabiullina.

Feb 26 2022

• Ban select Russian banks (unnamed at this point) from the Swift financial messaging system and impose restrictive measures on the Central Bank of Russia.

Feb 24 2022

• Assets of several Russian individuals and entities are frozen as part of sanctions.
• Prohibitions on dealings with major Russian banks are implemented.
• This action aims to exert economic pressure on targeted individuals and entities, contributing to the broader sanctions strategy.

Sanctions on Russia by Taiwan

Dec 26 2023

• Sanctions were expanded to cover additional high-tech goods with potential military applications.
• The extended list includes equipment used in semiconductor manufacturing, specific chemicals, and medicines.
• The focus on the chip industry suggests a strategic effort to restrict access to critical technologies.
• This move aligns with existing sanctions imposed by the European Union and the United States.
• The aim is to further constrain Russia and Belarus, potentially impeding their technological capabilities.

Feb 25 2022

• Places export controls on software, equipment and technology.

Sanctions on Russia by South Korea

Mar 7 2022

• Places export controls on software, equipment and technology.

Mar 2 2022

• Sanctions seven Russian banks and their subsidiaries. Bans trade in new Russian government bonds.

Sanctions on Russia by Poland

Apr 26 2022

• Sanctions target 50 entities and individuals, including prominent figures like Mikhail Fridman, the founder of Alfa-Bank.
• State-owned energy giant PJSC Gazprom is among the entities affected by the sanctions.
• The measures likely impact various sectors, including finance and energy, intensifying economic pressure.
• Targeting key individuals and companies aims to limit their global financial activities and influence.
• These sanctions contribute to the broader effort to hold Russia accountable for its actions.

Feb 24 2022

• Withdraws five Russian channels from the register of permitted TV services.

Sanctions on Russia by Singapore

Mar 5 2022

• Implements export controls on software, equipment, and technology, limiting their transfer to Russia.
• Freezes assets and imposes transaction bans on major Russian banks: VTB Bank, VEB.RF, Promsvyazbank, and Bank Rossiya.
• Prohibits transactions with the Central Bank of Russia, restricting financial interactions with a critical institution.
• The measures aim to curtail Russia's access to crucial technologies and financial resources.
• These actions intensify the economic impact on Russia, aligning with broader sanctions efforts.

Russia and Sanctions - Impacting Global Supply Chains

Russia’s invasion of Ukraine, coupled with sanctions against Russia, continues to disrupt and potentially worsen the situation. The invasion has put extensive strains on international trade and supply chains. Major manufacturing players are halting their operations in Russia, reflecting the widespread ramifications of the war. Meanwhile, the Black Sea shipping restrictions due to the conflict have left hundreds of vessels loaded with essential commodities like wheat and corn stranded at Ukrainian ports.

This disruption is causing global food shortages and contributing to inflation. Consequently, these inflationary trends are directly affecting companies, elevating raw material expenses in specific markets and increasing transportation costs across nearly every market. The reverberations of these effects are noticeable across various industries, spanning from food and beverage to high tech. The resulting disruption, particularly in the supply of critical goods and raw materials, is resonating across the entire spectrum of supply chains. Even if your business is geographically distant from the conflict, the interconnected nature of global supply chains means that delays and consequences are likely to affect a wide range of industries. Anticipated impacts on both a global and local scale include:

• Disrupted trade routes
• Declines in raw material availability
• Increased oil and energy costs
• Fluctuating or rising freight costs
• Consumer-spending knock-on effects as energy and goods prices rise

As discussed in above sections, various countries and authorities have imposed hundreds of sanctions on Russia and this certainly has a significant impact on global supply chains, affecting various industries and businesses. Here are some key points on how these sanctions are affecting supply chains:

Export Restrictions: Sanctions have led to limitations on Russian exports, affecting the availability of goods and raw materials in the global market. This scarcity can disrupt supply chains reliant on Russian-produced items.

Financial Strain: Sanctions may create financial challenges for businesses operating in Russia or dealing with Russian entities. This can lead to interruptions in payment flows and financial transactions, affecting the liquidity of companies in the supply chain.

Complexity in Compliance: Sanctions imposed compliance burdens, requiring businesses to carefully navigate and adhere to the evolving regulatory landscape. This complexity can slow down processes and decision-making within the supply chain.

Diversification Efforts: Businesses are re-evaluating their supply chain strategies to reduce dependence on Russian sources. This effort to diversify suppliers may lead to the exploration of alternative markets, impacting existing contractual relationships.

Transportation Disruptions: Sanctions may influence transportation routes and logistics, causing delays and increased costs. Restrictions on certain entities can affect the movement of goods across borders, impacting the timely delivery of products.

Increased Costs: The economic impact of sanctions, coupled with disruptions to supply and demand dynamics, can contribute to rising costs for businesses. This may include increased prices for raw materials, logistics, and compliance-related expenses.

Focus on Risk Management: The uncertainties associated with geopolitical tensions and sanctions necessitate an intensified focus on risk management within the supply chain. Companies are adopting proactive measures to mitigate potential disruptions and enhance resilience.

Re-evaluation of Partnerships: Businesses are reassessing their partnerships with entities connected to Russia, considering the reputational and operational risks associated with maintaining these relationships.

These impacts highlight the interconnectedness of global supply chains and the far-reaching consequences of sanctions on various industries and businesses.

Risk Analysis

It is imperative that companies moving goods and technologies across borders fully understand the potential restrictions that may apply to those transactions. The impact of sanctions on Russia has introduced various risks to global supply chains, necessitating a comprehensive risk analysis. Here are key aspects to consider:

Supply Disruptions: Sanctions have the potential to disrupt the supply of goods and raw materials from Russia, affecting industries worldwide. A risk analysis should assess the criticality of Russian inputs in various supply chains and identify alternative sources to mitigate potential shortages.

Geopolitical Tensions: Escalating geopolitical tensions can introduce uncertainty and volatility. A risk analysis should evaluate the geopolitical landscape, considering the potential for further sanctions, trade restrictions, or geopolitical events that could impact supply chain stability.

Financial Implications: Sanctions may lead to financial challenges for businesses with operations in Russia or dealing with Russian entities. A thorough risk analysis should assess the financial health of supply chain partners, considering the potential for payment delays, currency fluctuations, and liquidity issues.

Compliance Complexities: Compliance with evolving sanctions regulations poses a risk to supply chain operations. Businesses need to analyze the compliance landscape, staying abreast of regulatory changes and ensuring that all partners adhere to sanctions, reducing the risk of legal and reputational consequences.

Logistics and Transportation: Sanctions can influence transportation routes and logistics, leading to delays and increased costs. A risk analysis should evaluate the vulnerability of existing transportation routes, assess alternative options, and consider the potential for disruptions in the movement of goods.

Market and Demand Fluctuations: The economic impact of sanctions can lead to shifts in market dynamics and demand patterns. A risk analysis should examine potential changes in consumer behavior, market demand, and pricing, helping supply chains adapt to evolving market conditions.

Reputational Risks: Engaging with entities associated with sanctioned regions can pose reputational risks. A comprehensive risk analysis should consider the public perception of supply chain practices and assess potential reputational damage, prompting businesses to make informed decisions about partnerships.

Cybersecurity Threats: Heightened geopolitical tensions may elevate the risk of cybersecurity threats. Supply chain stakeholders should assess and reinforce their cybersecurity measures to mitigate the potential for cyberattacks that could disrupt operations.

Regulatory Compliance: Sanctions may involve complex and evolving regulatory frameworks. A risk analysis should include a thorough examination of regulatory requirements, ensuring that supply chain practices align with legal standards to prevent regulatory penalties.

Long-Term Strategy Re-evaluation: Businesses should consider the long-term impact of sanctions on their industry and supply chain strategy. A risk analysis should prompt a reevaluation of long-term partnerships, sourcing strategies, and overall supply chain resilience in the face of geopolitical uncertainties.

To summarize, the risk analysis of the impact of sanctions on Russia on global supply chains involves understanding the potential disruptions, managing compliance and risks, and adapting strategies to mitigate the effects of sanctions. Businesses should closely monitor the situation and maintain a proactive approach to supply chain risk management.

Sanctions Compliance Policy to Mitigate Risks Stemming from Sanctions on Russia In response to the complex challenges posed by sanctions on Russia, implementing a robust compliance framework is essential. This comprehensive approach aims to mitigate risks and ensure the resilience of global supply chains. By navigating the complex landscape of international regulations, businesses can safeguard operations, maintain compliance, and proactively address the evolving dynamics of the geopolitical environment.

This framework called as Sanctions Compliance Policy encompasses thorough risk analysis, strategic partnerships, and adaptable strategies, providing a foundation for companies to navigate uncertainties with resilience and maintain the integrity of their global supply chains. Below are the key components of this policy:

Policy Statement: A clear and comprehensive policy statement outlining the organization's commitment to complying with sanctions regulations.

Regulatory Framework: Understanding and incorporating the relevant regulatory framework into the compliance policy to ensure adherence to all applicable sanctions.

Risk Assessment: Conducting thorough risk assessments to identify and understand the possible risks of circumvention, as well as the vulnerabilities within the organization's operations.

Due Diligence and Screening Processes: Developing and implementing due diligence and screening processes to assess customers, transactions, and business partners against relevant government-issued sanctions lists.

Training and Awareness: Emphasizing the importance of ongoing sanctions training and awareness to ensure that employees are well-informed and equipped to adhere to the compliance policy.

Enhanced Due Diligence: Implementing enhanced due diligence to shield against Russia sanctions circumvention, as recommended by the European Commission.

Contingency Planning: Developing appropriate contingency plans to manage potential risks and disruptions caused by the sanctions.

By incorporating these building blocks into their SCP, businesses can enhance their ability to identify, assess, and mitigate the risks associated with the sanctions on Russia, thereby ensuring compliance and minimizing potential negative impacts on their operations.

Conclusion

The sanctions imposed on Russia have triggered a seismic shift in the dynamics of global supply chains. The ripple effects are significant, touching diverse industries and geographies. As we navigate this complex scenario, it becomes evident that resilience, adaptability, and a proactive sanctions screening and it's compliance approach are the most important strategies to align with. The interconnectivity of modern supply chains underscores the need for comprehensive risk mitigation strategies and continuous monitoring. While challenges persist, the evolving landscape also presents opportunities for innovation and strategic recalibration. As the global business community responds to this unprecedented scenario, staying informed, agile, and committed to compliance will be pivotal in sustaining the vitality of global supply chains.