Medium-term Recommendations

  • How does this affect my cyber security strategy?

Your contact: Wilhelm Dolle, Partner, Consulting, Head of Cyber ​​Security

More information available here.

  • How and to what extent can losses from investments or loans in Russian subsidiaries be used for accounting purposes?
  • How are currency effects from the drastic devaluation of the rouble treated for income tax purposes?
  • How can costs and losses from any crisis-related terminations of business relationships with Russian companies be used for income tax purposes?
  • Is there a risk that the double taxation agreement between Germany and Russia will be annulled and how would this affect my company?

Your contact: Lars Christian Mahler, Partner, Head of International Transaction Tax

  • What are the effects of the sanctions against Russia on cross-border financing and payment flows?
  • Are any adjustments required to the existing transfer pricing model or the underlying contracts due to the effects of war (e.g. supply chain disruption)?
  • Will ongoing (advance) mutual agreement procedures (APAs and MAPs) between Russia and Germany be continued? Can new applications be submitted at this time?

Your contact: Michael Freudenberg, Partner, Tax, Head of Global Transfer Pricing Services in Germany

Against the backdrop of the Ukraine conflict, banks/external financiers are critically examining the following points for borrowers

  • Do any delivery and/or customer relationships exist with Russia or Ukraine?
  • How is the company affected by material price increases and can they not be fully passed on to customers?
  • Is the supply chain reliably stable, especially with regard to logistics and availability of parts or materials?
  • How robust is corporate planning with regard to rising interest rates potentially caused by price inflation due to the crisis?

The following questions are now important for borrowers

  • Is there any risk of non-compliance with the provisions in the loan agreements?
  • Do any significant loans fall due within the next 12-18 months or are there any important bank talks pending?
  • Is it necessary to make any revisions to the medium/long-term corporate planning known to the banks?

Your contact: Thomas Dorbert, Deal Advisory, Head of Debt Advisory Germany

  • How should your company realign IT demand to compensate for failures of nearshore centres in Eastern Europe and other risks of local relocation?
  • How is your company increasing the resilience of its IT organisation?
  • How is your company redesigning its IT operating systems?
  • How is your company preparing for medium-term changes in nearshoring and offshoring?

Your contact person: Gernot Gutjahr, Partner, Consulting, Head of CIO Advisory

Access more information on legal questions here.

Your contacts:

For medium-term measures, we recommend that industrial companies

  • identify sanctions risks related to the business model;
  • Introduce a process for compliance with economic sanctions and, in particular, identify and risk-assess business partners (before and during the business relationship);
  • Define contact persons and responsibilities;
  • Set up processes to comply with country and commodity embargoes (before executing a transaction);
  • Define a process for the sanctions list check and select suitable tools to do this;
  • Create documents for the roll-out of the sanctions screening in the national companies; and
  • Prepare and deliver training for roll-out in the national companies.
  • In the medium term, financial services companies should
  • Carry out case-by-case checks and releases of existing transactions, for example in documentary business;
  • Introduce stricter filter settings or parameters in transaction monitoring;
  • Introduce a manual temporary process for non-SWIFT payments;
  • Set up processes to comply with country and commodity embargoes (before executing a transaction);
  • Implement stricter controls to identify circumvention transactions; and
  • Introduce further de-risking measures to reduce exposure to Russia.

Your contacts:

An overview of sanctions can be found here.

Medium-term issues

  • What precautions should be taken to prepare for any further tightening of sanctions?
  • Given current sanctions and how they may evolve, how should a company's own branches or subsidiaries in Russia and Belarus be dealt with?
  • How should contracts with (new) customers in Russia and Belarus be structured in order to obtain the most extensive protection possible?
  • How should customs processing be checked or adjusted according to legal requirements?

Medium-term recommendations for action

  • Monitor further legal developments in connection with Russia and Belarus
  • Review contracts and, if necessary, make adjustments with regard to special sanction clauses
  • Set up or adapt export control compliance systems

Your contacts:

  • Gabriel Kurt, Partner, Tax, Head of Trade & Customs
  • Mario Urso, Partner, Tax, Trade & Customs, Italy Country Practice Head
  • Jonathan Eßer, Senior Manager, Trade & Customs


*The legal services are provided by KPMG Law Rechtsanwaltsgesellschaft mbH.

Here are the short-term recommendations for action.