The international community responded to Russia’s invasion of Ukraine by imposing severe and sweeping sanctions on the Russian Federation, its leadership, Russian businesses and entities. Among other sectors, these restrictive measures affect finance, energy, airspace, maritime and transport, as well as dual-use goods, technical assistance and software, technology and semiconductors.
Will sanctions on Russia work? The aim of sanctions is to ultimately force behavior changes among the country’s leadership. While bloodless, sanctions are not painless. Nor is the burden of sanctions confined to their targets. Many businesses with global supply chains are adversely impacted as well. They must perform sanctions checks for all existing and new suppliers. Some of their suppliers and supplies of goods and services will be cut off. And they potentially face fines and penalties for accidental or intentional non-compliance.
For answers to questions regarding sanctions that the European Union (EU) has imposed on Russia over the invasion of Ukraine, we spoke with Klaus John, managing director of the European Compliance Company, a riskmethods partner.