A toolkit to help counsel working in the US, UK, EU, Canada, Australia, and New Zealand guide their clients through the business interruptions caused by the war in Ukraine, including key sanctions imposed on Russia and Belarus, persons, and entities. This toolkit covers a wide range of resources, including in the areas of business operations, crisis management and disaster preparedness, cybersecurity, employment matters, financial services, fundraising, insurance, oil and gas, sanctions compliance, supply chain disruptions, and social governance. The Legal Updates in the first section are available without a subscription.
The Russia Sanctions and Related Considerations Toolkit is a collection of resources to assist counsel working across jurisdictions on business interruptions caused by the war in Ukraine, including key sanctions imposed on Russia and Belarus, persons, and entities. The Practice Notes, Standard Clauses, Checklists and other resources in this collection cover a wide range of topics applicable to lawyers and professionals, including in the areas of:
Sanctions Legal Updates (No Subscription Required)
Many governments have imposed economic and trade sanctions and export controls on Russia and Belarus in response to the 2022 invasion of Ukraine. To learn the latest information for the UK, the US, and Canada, without a subscription, see the below Legal Updates.
As a result of the war in Ukraine and the sanctions imposed on Russia and Belarus, organizations may need to evaluate their global supply chain for compliance, manage potential disruptions, and update their commercial contracts' risk allocations. The curated collection of Practice Notes, Standard Clauses, Checklists, Articles, and Quick Compare Charts provides general know-how and guidance on such things as:
Addressing supply chain compliance by using the contracting process and clauses.
Handling contract performance issues that arise from extreme events through force majeure clauses.
Mitigating the effects of business interruptions.
The collection also includes some sanctions-specific resources addressing:
Business organizations today operate in a fast-moving, interconnected, global economy. The war in Ukraine and the sanctions imposed on Russia and Belarus can disrupt the supply and production of goods and services even if the business is located far away from the crisis. News of corporate missteps can spread virally in minutes and cause economic harm. To lessen the threat to the viability and integrity of the business, organizations must be prepared to manage and respond to the resulting crisis. The curated collection of Practice Notes and Standard Documents provides information and guidance on drafting and implementing a crisis management plan and assists lawyers to communicate effectively.
Amid a growing risk of Russian cyberattacks, western governments are urging organizations to strengthen their cyber defenses. Despite these efforts a breach may occur, and organizations need to be prepared to respond. The curated collection of Practice Notes, Standard Documents, Checklists, Articles, and Legal Updates provides guidance on preparing and responding to a cyberattack and informs on typical cyber insurance coverage.
For those organizations with employees in Ukraine and Russia, the global guide to Employment and Employee Benefits provides a high-level overview of their employment laws. Additionally, the work health and safety (WHS) practice notes provide guidance for workers of Australian organizations working at their direction overseas, such as in Russia or Ukraine.
Specific to the current Russia-Belarus sanctions and Ukraine crisis, the Legal Updates provide the UK's and the US's latest response to the crisis.
Financial institutions must develop and implement compliance programs to prevent money laundering and transacting business with sanctioned persons and entities. To fulfill these obligations financial institutions are required by local regulators to block the accounts and other assets of, and transactions with, sanctioned persons or entities.
As a result of the humanitarian crisis unfolding in Ukraine, organizations and their employees are pursuing efforts to support nonprofit organizations assisting refugees and affected Ukrainians. Corporations may assist with direct monetary or in-kind contributions to nonprofit organizations or cause marketing (also known as commercial participator) collaborations.
Corporations and nonprofit organizations must be aware of the regulations that govern fundraising. The curated collection of Practice Notes and Standard Documents provide information and guidance on conducting charitable fundraisers and cause marketing or commercial participator campaigns, including commercial co-ventures, in the US and the UK.
Additionally, the UK's Charity Commission has issued a statement on the implications of the Ukraine crisis for charities, including guidance on running effective and impactful appeals and managing risks when working internationally. The Charity Commission also regulates charitable fundraising by organizations that are not a charity (for profit entities).
The crisis in Ukraine and the sanctions imposed on Russian and Belarus persons and entities may have a detrimental effect on the business operations of businesses in non-sanctioned countries. This may be caused by disruptions in grain supply (as Ukraine is one of the world's largest grain exporters), reliance on sanctioned investors or sanctioned goods (such as Russian oil and gas or luxury goods), or indirectly by the disruptions the war is causing in the world's supply chain.
As a result, impacted businesses may need to avail themselves of insolvency protection laws. The resource collection on foreign insolvency provides in the form of a practice note a guide to the domestic processes and requirements for gaining legal recognition of a foreign insolvency process in 15 jurisdictions.
Additionally, the curated collection of Practice Notes, Checklists, Articles, and Global Guides provides a general know-how and guidance on insolvency and bankruptcy laws of the UK, the US, Canada, and Australia. A US-centric expert Q&A provides insights into the market implications of the Ukraine crisis and Russian sanctions on businesses worldwide.
World governments have urged businesses to harden their cyber defenses immediately amid a growing risk of Russian cyberattacks and prepare for direct and indirect economic consequences from the invasion of Ukraine and resulting sanctions. As a result, organizations need to evaluate their insurance policies for protections against cyberattacks, political risk, and supply chain disruptions. For example, a policy on:
Cyber insurance may provide coverage for cyber losses resulting from Russia-linked attacks.
Supply chain insurance will protect against losses resulting from disruptions in a company's supply chain
Political risk insurance may provide coverage for losses due to war, property expropriation, forced abandonment, and currency inconvertibility.
The curated collection of Practice Notes, Standard Clauses, Checklists, and Articles, provide general know-how and guidance on such things as:
The type of risks covered by insurance and typical exclusions, such as war and terrorism.
Participants in an arbitration need to be aware of the various sanctions regimes that may apply to them and to the arbitration to avoid criminal or financial liability for a breach of those sanctions. The Practice Note, Impact of sanctions on arbitration discusses the impact international, US, and UK sanctions have on the arbitration process, jurisdiction, merits, and post-award issues. The collection of curated Russian Practice Notes provide insights into the Russian Federation's litigation and dispute resolution landscape. Additionally, the curated collection of Practice Notes and Global Guides provide general know-how and guidance on a range of topics from litigating to withdrawing as counsel.
Sanctions on Russia are having a deep and direct impact on procurement arrangements, joint ventures, joint operating agreements, and other investments in oil and gas. This may result in contract disputes over operating and procurement arrangements, such as currency payments, and increased due diligence. The curated collection of Practice Notes, Standard Documents, Standard Clauses, and Checklists provide general know-how and guidance on a range of topics from insurance against political risks and war to addressing contractual and tortious issues to due diligence considerations for new transactions.
Doing business in and around conflict zones carries an increased risk that a company's contractual counterparties may become subject to sanctions, rendering performance of the contract illegal. Breaching sanctions regulations risks potential criminal liability, regulatory fines, and forfeiture of goods or profits, as well as loss of existing customers and contracts. To this end, organizations will need to keep up to date with the latest sanctions regulations on Russia, Belarus, and key persons and entities in response to the invasion of Ukraine.
The curated collection of Practice Notes, Standard Documents, Standard Clauses, Checklists, and Toolkits provide general know-how and guidance on financial and trade sanctions compliance considerations, procedures, due diligence, and training. Additionally, it includes sample agreements and clauses ranging from corporate compliance policies to sanctions compliance clauses for commercial agreements.
The collection also includes sanctions-specific resources such as:
Trackers and Legal Updates that summarize key Russia and Belarus-related economic and trade sanctions and export controls imposed by the UK, the US, and Canada.
Agencies Implementing Russia Sanctions Chart that contains a reference table of administrative agencies and other governmental authorities in various countries that have implemented sanctions and export controls against Russia and Belarus.
EU sanctions policy falls within the Common Foreign and Security Policy (CFSP). Sanctions decisions are taken unanimously by the Council of the European Union (Council), on the basis of proposals by the High Representative of the Union for Foreign Affairs and Security Policy (High Representative). Decisions of the Council of the European Union are binding on member states, but are usually accompanied and given effect by EU regulations jointly proposed by the High Representative and the European Commission and adopted by the Council. Individual member states are responsible for the enforcement of sanctions. Some types of sanctions, such as travel bans, fall outside the EU’s competence and must be implemented by individual member states.
The war in Ukraine and the sanctions on Russia and Belarus are having an impact on businesses around the world irrespective of location or proximity to the conflict. As a result, organizations need to manage significantly increased risk and grapple with complex ethical issues. The curated collection of social governance and corporate policies provides general know-how and guidance on such topics as managing political engagement, corporate social responsibility policies, and approaches to addressing social responsibility in the supply chain.
Added legal update on the new guidance from the Office of Financial Sanctions Implementation (OFSI) on financial sanctions enforcement and penalties.
UK Sanctions (1 March 2024).
Added legal update on Regulations 2024 to the Russia Sanctions Regulations. The new regulations enter into force on 1 March 2024. These regulations create new prohibitions to the importation of Russian origin diamonds that are processed in third countries and its ancillary activities.
Resource Refresh.
This Toolkit was refreshed in February 2024. We added new content throughout to reflect legal updates on Russian sanctions and related subject matters. Some Global Guides have been substituted for maintained Practice Notes and Quick Compare Charts.
New Sanctions Content (20 December 2023).
Added legal update on Amendment No 4 to the Russia Sanctions Regulations. The new regulations enter into force on 15 December 2023 and 26 December 2023. These regulations impose additional trade restrictions on Russian military, industrial, iron and steel products, as well as luxury goods. Additionally, we added Export Control Regime: Overview (Canada) to the Canada sanctions resource collection.
Expanded Resource Content.
We added Canadian and Australian content to the Sanctions Compliance section. Specifically, we expanded our sanctions content to include Practice Notes, Sanctions Regime: Overview (Canada) and Sanctions Compliance: Overview (Australia).
UK Sanctions (19 December 2023).
Added legal update on Amendment No 5 to the Russia Sanctions Regulations. The new regulations enter into force on 1 January 2024. These regulations prohibit the importation, acquisition, supply, and delivery of diamonds and diamond jewelry located or consigned from Russia, as well as address ancillary services and exceptions.
UK Sanctions (5 September 2023).
Added legal update informing on the High Court's decision in Shvidler v Secretary of State for Foreign, Commonwealth and Development Affairs [2023] EWHC 2121 (Admin). Court held sanctions designation of Russian oligarch was rational and proportionate given his close personal and financial relationship to the Russian president.
UK Sanctions (30 June 2023).
Added legal update informing on regulations to ensure that no UK person or person in the UK can provide legal advisory services in relation to certain financial trade or activity. The regulations enter into force on 30 June 2023.
UK Sanctions (20 June 2023).
Added legal update informing on amendments to the 2019 Russia sanctions that enable certain assets to remain frozen/immobilised. The new regulations enter into force on 20 June 2023.
Standard Clause Added (24 May 2023).
Added a new resource to section Sanctions Compliance: Standard Clause. Standard Clause, Sanctions compliance clause for supply of goods or services agreements assists counsel in drafting warranties and other clauses addressing sanctions compliance.
Change in Resource Titles (18 May 2023).
The links to the Global Guide, International Trade in Goods and Services under the section Sanctions Compliance: Global Guides has been updated to reflect a change in the collection. The collection was split into two guides renamed International Trade: Exporting and International Trade: Importing.