The Russian President Has Introduced Sanctions Against Persons From Unfriendly States

Published date18 May 2022
Subject MatterCorporate/Commercial Law, International Law, Corporate and Company Law, Contracts and Commercial Law, Export Controls & Trade & Investment Sanctions
Law FirmVEGAS LEX
AuthorMs Anastasia Cheredova

In response to the fact that the majority of foreign companies have decided to withdraw from the Russian market, the Government has implemented various restrictions on operations and transactions involving non-residents, especially from the so-called "unfriendly" states.

In May 2022, the Russian President has signed two more decrees that significantly affect existing contractual relationships between Russian entities and their foreign counterparties.

  • Presidential Decree 252 introduces special economic measures in relation to legal entities, individuals and organizations under their control ('Sanctioned Persons') included into a special list.

    The list was approved by the Decree of the Russian Government No 851 dated 11 May 2022 (the 'Sanctions List') and includes foreign companies operating in the energy sector across the Europe, UK, USA Singapore, and Switzerland.

    Special economic measures include:

    1. A prohibition for federal and regional governmental bodies municipalities, natural persons and legal entities under the jurisdiction of the Russian Federations to:

      • enter into transactions (including foreign trade contracts) with Sanctioned Persons;

      • perform obligations under contracts with Sanctioned Persons;

      • carry out financial transactions, if beneficiaries of such transactions are Sanctioned

    2. A prohibition to export products and raw materials produced in Russia, provided that such products are supplied to Sanctioned Persons, and/or by Sanctioned Persons to other persons.

    3. By the Decree of the Russian Government No. 851 dated...

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