Addressing Russia Sanctions Risk

It happened in an instant. Almost overnight Russia, the world's eleventh-largest economy, was transformed from an important player in global financial markets – both as a destination for investment and a source of capital – into a country shunned by much of the international community. In response to Moscow's invasion of Ukraine, the United States, European Union, and United Kingdom, along with a host of other countries, have imposed crushing economic sanctions impacting nearly every corner of Russia's economy. 

The measures that have been adopted reflect the growing “arsenal” of economic sanctions available to regulators. This includes categorical “blocking” sanctions, which generally prohibit any dealings with specific designated parties (and entities they own), as well as more limited “sectoral” sanctions, which ban some dealings with the target (e.g., related to their new debt or equity), but not others. In some cases, non-U.S. parties risk being targeted