Globas helps to work under sanctions

Thousands of Russian enterprises are under sanctions. For participants in international transactions, cooperation with such companies implies the emergence of a compliance risk and may lead to the blocking of the transaction by foreign banks. At the same time, restrictions are also applied to companies controlled (more than 50%) by an entity under sanctions, even if the companies are not directly included in the list of sanctions.

When checking the counterparty, it is important to make sure that the transaction with a Russian business partner does not carry risk and will not lead to fines or even criminal liability.

Given the scale of the restrictions applied, compliance with sanctions imposes a serious burden on business. Therefore, in the current conditions, when developing Globas, we focused on the operational implementation of tools that will help to support your business and remove routine work from specialists conducting counterparty checks.

A new report, Sanctions risks, has been added to Globas. The report helps to automate the sanctions verification processes.

New tools allow to:

• verify legal entities, sole proprietors, divisions and persons for entry into the sanctions lists of the UN Security Council, Russia, the USA, the European Union, Great Britain, Switzerland, Canada, Japan, Australia, Ukraine;
• check companies for secondary sanctions (50 Percent Rule);
• check whether the company has managers and shareholders under sanctions and restrictions;
• verify affiliated companies for sanctions risk;
• get a printed report and set of documents on the performed check.

Our experts have already installed all the necessary settings for the Sanctions risks report in users' accounts. Optionally, you can adjust the verification criteria, activities, sources, summary and final Report type in accordance with corporate regulations.

Currently, connecting to the service does not require any extra fee or the need to enter into an additional agreement. The report on Sanctions risks is available as the part of the current subscription to Globas, including for new subscribers.

In our Newsletter you can find answers for questions: what sanctions are mandatory for Russian entities? Which countries are beneficiaries of the introduction of new restrictions?

Sanctions in numbers

The Russian entities are obliged to comply only with the sanctions of Russia itself and of the UN Security Council, of which Russia is a permanent member, thereby coordinating the introduction of restrictions.

At the same time, depending on the specifics of the business, it is necessary to take into account the presence of sanctions risks for many companies and individuals. For branches of foreign entities, banks, non-residents of the Russian Federation and companies that have contracts with foreign partners and conduct settlements in foreign currency, checking for sanctions risks becomes a necessary measure.

Since the end of 2021, the global sanctions rhetoric has been gaining momentum.

Currently, the most discussed types of sanctions are blocking and sectoral. Blocking sanctions prohibit any trade transactions with specific individuals and legal entities. All property of legal entities and individuals under blocking sanctions is considered "frozen" and cannot be used.

Sectoral sanctions prohibit transactions in certain sectors of the economy. For instance, a ban on the supply of weapons and dual-use goods, restricting access to the foreign capital market for companies in the energy sector.

The beneficiaries of the introduction of new sanctions and restrictions are the United States, the European Union and the United Kingdom, once in a while introducing new restrictive measures several times a day.

For the entire duration of the sanctions regimes of various countries, the number of companies, persons, air and water transport that have been sanctioned has exceeded 42 thousand. Of these, over 2,6 thousand Russian companies have been directly sanctioned.

The United States lead in the number of restrictions imposed: more than 13 thousand entities are under direct sanctions. Such a large number of restrictions is explained by the fact that in the United States, sanctions and restrictions are imposed by several government departments at once.

This is followed by Ukraine – over 10 thousand restrictions.

Russia has currently imposed restrictions on 1,332 entities.

Sanctions check

There is no unified consolidated global sanctions list. The departments of each country and international organizations make their own list in the national language. Sometimes information is published only in printed pdf format, which makes it difficult to verify. Therefore, an independent search is very labor-intensive and does not guarantee an accurate test result.

At the conclusion of the transaction, high-quality and fast verification of suppliers and manufacturers of goods on the sanctions lists is a necessity. The company's assets can be blocked for a single deal with a company included in one of the sanctions lists.