Risk managers warned on Ukraine sanctions
Risk managers have been warned to assess their business operations in Ukraine following the implementation of sanctions by the EU and US.
The EU and US have taken targeted action to address the evolving situation in the Ukraine. The sanctions are focussed on the freezing and recovery of misappropriated Ukrainian state funds. The EU sanctions specifically target 18 designated persons in Ukraine but the measures do not currently affect overall trade with the country.
Alert: 24, part of Special Contingency Risks, itself part of Willis’ risk and crisis management consultancy, has advised companies to review their business activities to determine whether they are engaging in activities with the designated persons.
The President of the US has also signed an Executive Order which allows the US to sanction any individual or entity that is responsible for or complicit in actions or policies that undermine democratic processes/institutions or threaten the peace, security, stability, sovereignty or territorial integrity of Ukraine. The Order may also sanction persons involved in the misappropriation of state assets or those who have asserted governmental authority without authorisation of the Ukrainian government.
Tim Holt, head of Intelligence for Alert: 24, said: “The European Union and the United States have recently issued new economic sanctions that may affect businesses with interests in Ukraine. Risk managers are advised to assess their business operations and relationships in Ukraine in light of increasing political sensitivity and the risk of enforcement action. At the very least companies should be screening all third-parties to ensure they aren’t engaged in transactions with sanctioned individuals or companies owned or operated by them.”
