Herald

Sanctions restrictions 2025: what is important for business to know

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Image: Freepik.com
Sanctions remain one of the main challenges for companies engaged in foreign economic activity, operating in the financial sector or cooperating with foreign partners. The sanctions policy continues to expand not only in terms of coverage, but also in depth – new formats of restrictions are being imposed, requirements for screening counterparties are being tightened, and control by regulators is being strengthened.
Errors in screening counterparties and goods can lead to accounts blocking, contract breaches and reputational losses.

The geography of sanctions is expanding

Modern sanctions and restrictions are multi-level and interstate in nature. In addition to the United States, the European Union and Great Britain, Canada, Japan, Australia, Switzerland, China, Russia, South Korea and other countries are actively pursuing a sanctions policy. The number of programs covering not only counterparties, but also persons, transport, certain industries, goods and technologies is growing.
The sanctions relate to:
  • individuals and legal entities
  • water and air transport
  • a wide range of goods
  • participants of financial transactions and their intermediaries
  • specific economic sectors
  • organizations recognized as extremist, undesirable or foreign agents
Risks: from primary to secondary
Even in the absence of direct inclusion in the sanctions lists, business may face the consequences:
  • accounts blocking due to links with persons from the sanctions lists (including the 50% Rule)
  • disruptions in the logistics of goods due to sanctions restrictions on goods
  • termination of contracts due to tougher sanctions compliance applied by foreign partners
  • inability to conduct financial transactions banks may block transactions due to the sanctions trail
  • criminal and administrative risks when working with extremists, foreign agents, undesirable organizations, etc.
  • reputational losses if proper screening of the counterparty has not been carried out.

Screening is no longer limited to sanctions lists

Usually, sanctions mean international lists of the United States, the European Union, Great Britain and other countries. But in practice, the sanctions risks are much broader - a multilayered screening is required, covering a number of key aspects, including:
  • the 50% Rule counterparties may not be directly included in the sanctions lists, but can be controlled or affiliated with those included. This creates hidden risks.
  • Secondary risks screening of the related parties: owners, beneficiaries, managers, affiliates and subsidiaries.
  • Commodity sanctions restrictions on the export/import of certain categories of goods, technologies and equipment.
  • Transport sanctions restricted ships and aircraft cannot participate in international traffic.
  • Restrictions on national legislation for instance, Russian companies must take into account the lists of foreign agents, undesirable organizations, the requirements of counter-sanctions (presidential decrees and government decrees).
  • Internal corporate policies companies, banks and financial institutions use their own risk assessment criteria. These can be internal sanctions lists, restrictions on counterparties registered in certain jurisdictions, as well as companies associated with Politically Exposed Persons (PEP) or other features.

Globas Sanctions Compliance is a tool for identifying sanctions risks

The sanctions policy continues to actively change: new lists appear, inclusion criteria are expanding, and pressure on international trade participants is increasing.
One of the key trends in 2025 is the growth of requirements for the automation of sanctions compliance and the integration of such screenings into business processes.
The point-by-point screening has been replaced by a comprehensive approach. Now the sanctions analysis covers a wide range of objects: legal entities and individuals, transport, goods, as well as related persons, owners and beneficiaries.
Given the complexity of sanctions regulation, it is especially important to have a reliable tool for screening, analyzing and monitoring restrictions. This tool is the Sanctions Compliance module in Globas.
  • comprehensive analysis of sanctions risks: companies, persons, transport
  • screening across all lists of Sanctions Compliance using single search bar
  • the 50% Rules and identification of secondary risks
  • analysis of restrictions within the framework of Special Economic Measures of Russia
  • screening of sanctioned goods
  • control of risks in accordance with the 115-FZ Federal Law;
  • screening in lists of foreign agents
  • checking for being undesirable organization
  • identification of Politically Exposed Persons
  • formalized reports and monitoring
  • Receive data through GLOBAS API to integrate screenings into the company's business processes.
Sanctions Compliance in Globas enables businesses to conduct a comprehensive risk assessment of sanctions and other restrictions, along with full screening across all key factors.
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Herald

International Financial Reporting Standards (IFRS): How to Read Statements and Make Data-Driven Decisions

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Image: ru.freepik.com

What is IFRS and why it was created

International Financial Reporting Standards (IFRS) are universal rules by which companies from different countries compile financial statements. These rules help make reports understandable and comparable for investors, banks, partners and potential counterparties, regardless of which country they work in.
IFRS was invented to solve a simple problem: in different countries there are different accounting rules, and it is difficult to compare the reporting of companies with each other.
For example, revenue and profit in Russian and German reporting can be taken into account differently. Therefore, since the creation of IFRS, more than 140 countries have officially used the international standard.

What are the differences between IFRS and the Russian Accounting Standards (RAS)

IFRS does not have a unified form with strict line numbering, as in RAS. Companies themselves form the structure of the report, following the principles of disclosure.
In Russia, the preparation of financial statements is regulated by one key document - the Federal Law No. 402-FZ, the Order of the Ministry of Finance No. 66n, which approved the forms of financial statements.
IFRS has dozens of standards. Each is responsible for its own plot: revenue, rent, taxes, stocks, leasing, financial instruments. This makes IFRS reporting more flexible and closer to the real economy of the company.

Who in Russia needs to report under IFRS

  1. Public companies are organizations whose securities are traded on exchanges.
  2. Subsidiaries of foreign holdings are required to report under IFRS to the parent company.
  3. Companies issuing bonds and attracting borrowed financing.
  4. Large holdings - for internal analysis, interaction with banks and preparation for IPO.
Despite external sanctions, reporting according to international standards remains relevant. Reports under IFRS may be requested by:
  • investors and counterparties from China actively working with Russian enterprises;
  • EAEU countries using IFRS for mutual recognition of reporting;
  • countries with which economic cooperation has intensified: Brazil, India, Argentina, Turkey, UAE, Vietnam, etc.

Composition of IFRS statements

Reporting according to international standards includes four forms:
  1. Statement of Financial Position. Shows what the company owns (assets), how much it owes (liabilities) and what capital it has.
  2. Statement of Comprehensive Income. Shows revenue, expenses, profit and other income.
  3. Cash Flow Statement. Reflects where the money comes from and where it goes, is the main indicator of the company's health.
  4. Statement of Changes in Equity. Shows how equity has changed over the year due to earnings, dividends and revaluations.

Express methods of IFRS financial statements analysis

To get an overview of the financial condition of the company, it is enough to consider several key indicators, and identify negative and positive factors.
  1. Revenue and net profit show the company's income and profitability. When analyzing, it is also worth paying attention to the trend of 2-3 years. If the indicators are growing, this is a good sign.
  2. Current liquidity ratio shows whether the company is able to cover its current liabilities. If the current liquidity ratio is higher than 1, it is a sign that the company can manage its short-term liabilities.
  3. Debt ratio indicates dependence on borrowed funds. The lower the ratio, the better: the company is less dependent on external funds.
  4. Cash flow from operating activities reflects whether a company is able to generate cash from its core operations without relying on loans. A positive flow shows that the organization earns from its core activities.
During the analysis of key indicators, negative and positive factors in the company's activities should be identified. This method will help you quickly assess the financial condition of the company.
The negative factors may include:
  • high debt burden (debt ratio)
  • negative operating cash flow
  • low liquidity
Positive factors include:
• revenue growth
• stable profitability indicators
• positive operating cash flow
If negative factors are dominant, it is necessary to refuse to cooperate or conduct prepayment transactions.
Using this express technique, you can get an initial picture of the financial condition of a foreign counterparty in a few minutes.

Globas capabilities in financial analysis

In Globas, financial statements under IFRS standards are available for a wide range of foreign companies. This makes it possible to assess the financial stability and solvency of foreign counterparties with a high degree of reliability.
Globas offers advanced analysis capabilities:
  • identification of signs of temporary insolvency
  • calculation of key financial indicators
  • broad analysis of all forms of financial reporting, including IFRS reporting
Such tools are especially in demand when conducting foreign economic activity and choosing reliable partners abroad.
Verification of foreign counterparties can be performed in two formats:
  • online - with access to basic information from official sources
  • offline - with the possibility of obtaining an extended expert report
The offline report may additionally provide information about related persons, court and enforcement proceedings in the Russian Federation, the availability of Russian certificates and declarations, as well as verification for inclusion in the sanctions lists of the Russian Federation, USA, EU, Great Britain and other countries.
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