Actions companies can take
The Russia-Ukraine war has prompted many companies to cease operations in Russia, at least until the fighting stops. But for many firms, the war and related sanctions create additional challenges including ensuring that their supply chains—and their supply chains’ third-party suppliers—are not subject to the growing list of sanctions being applied by the U.S. and other governments. Failing to adhere to the complex sanctions rules could prove very costly, both financially and in potential damage to reputation.
In this article, we detail some of the more recent sanctions and what companies need to do now to stay compliant.
With the fast-growing list of sanctions on Russian companies, banks and individuals, U.S. companies need to increase scrutiny on third parties to manage compliance, not just with U.S. regulations, but with more stringent European sanctions that could affect U.S. overseas subsidiaries.
These are some recent sanctions that companies should be considering for third-party compliance:
Company compliance programs will differ, depending on how directly it and its suppliers are involved with Russian trade and products imported and exported to the region. Here are some steps that every company should consider to comply and avoid financial and reputation risks from violations:
1 “U.S. Treasury Announces Unprecedented & Expansive Sanctions Against Russia, Imposing Swift and Severe Economic Costs,” treasury.gov, Feb. 24, 2022.
Russia-Ukraine war: Managing third-party compliance with sanctionsDownload PDF