Moscow Hide and Seek US companies are breaking

Moscow Hide and Seek: US companies are breaking the law with her daughters sanction companies

The Wall Street Journal raises a very interesting topic in its pages. With Russian companies from "blacklist" American partners can not work. But in a company registered anywhere in Monaco, and under the control of foreign nationals, it is difficult to suspect the closest relative of concern "Kalashnikov". How to get out of such situations?

American
Company to ensure compliance
sanctions should first deal with the
the intricacies of Russian branches
firms. Western firms that are trying to
to avoid the consequences of sanctions against
Russia, are facing a fundamental
problem: they will have to start
to find out, whether owned by a cute
partner company of a larger company
from the sanctions list.

some
individuals and companies from the “black list”
We have extensive contacts with other firms
in different countries around the world. And so
this raises an ethical question: how
restrict business with Sanctions
list, but gracefully save
due to the “clean” firms? And where is the guarantee,
that the company with which you are working,
is no second cousin’s daughter “Rosneft”?

The scale of the tragedy

The United States contributed to the
sanctions lists 50 companies and 57
human. These units have a proportion of 107
ownership or full control
thousands of other companies worldwide
(Sometimes indirectly) according collected
Dow Jones Risk Compliance data.
Such native and “cousins” daughter can
It is found in more than 70 countries
the world (including, in fact, the United States).

The objectives of the recent
sanctions are different from other sanctions
modes that are normally focused
on order, more isolated from
global business community. Now all
harder, and US companies
search of partners should be as
attentive and well-sorted
tangle of branches of Russian companies,
to ensure compliance with the law.

American
entrepreneurs say: “Indeed
extremely difficult to comply with the anti-Russian
sanctions”. The main problem – to find out
exactly who owns what (taking into account,
that is information that has traditionally
not advertised).

Ignorance of the law does not relieve from responsibility

Among the companies,
having regard to Russia – for example,
manufacturer Arctic icebreakers,
Finnish company Arctech Helsinki
Shipyard Inc. It is 50% owned
Russia’s United Shipbuilding
Corporation, according to its own same
website and to Dow Agency
Jones. In July, all business have been banned
Due to the Russian shipbuilder
and given its share of the Finnish company,
Americans stop working yet
Finns.

representatives
Arctech to a request from the Wall
Street Journal on the subject do not
responded.

It’s just
one example. The situation for the US
Business is further complicated by the fact that
US authorities do not take
work on the preparation of “suspicious” list
subsidiaries, and companies in the search
Business partners must not only,
scrutinize sanctions
lists by themselves, so still and alone
conduct a study to identify
the rights of potential accessories
partner.

It means
additional investments in the development
security service, hiring professionals
appropriate level.

And what would happen if
someone inattentive Americans
the enemy will continue to support the firm
bypassing the sanctions? Everything is simple: in this case,
the company is facing straight
responsibility, because it violates
sanctions laws. Even if the company does not
He knows that actually works
for the benefit of Russia, it should still
fine.

"gray list"

There are so
called “gray list” – it
includes, for example, the Bank of Moscow and Rosneft.
It is less categorical, in relations
with companies belonging to it, is prohibited
Only certain types of operations –
e.g., crediting. This sectoral
sanctions list. These firms are imposed
less restrictive in partnership
American corporations, however,
experts say that here, too, is
“Blow on water”. “As soon as you learn
that the company is in the spectrum
the interests of the US government,
you should think twice before
start working with it. ”

important and
“Interest” company affiliation
to sanction the management or
“Parent company.” For example, “disgraced
the proportion of “50% – this is a strict ban on
any links. Such Russian companies
– “untouchables” for Western business
(Such, for example, all of our concerns
arms industry or the same
most shipbuilders). But “when dealing
now, Russian share of which –
only 33%, I would definitely sweating. And be found
a more suitable partner, “- say
experienced analysts and experts of the American
business.

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