Evgeny Roshkov spoke at the SPILF-2024
June 28, 2024
June 28, 2024
On the 28th of June 2024, Evgeny Roshkov, Managing Partner at Kesarev, was invited to speak at the SPILF-2024 as part of the session "Between a Rock and an anvil. How to continue business in Russia for international companies in the terms of foreign sanctions and Russian countermeasures."
Since February 2022, pressure on Russia from a number of foreign countries has increased through the introduction of multiple rounds of sanctions. These restrictions are not recognized as legitimate on the territory of the Russian Federation, and compliance with them is negatively assessed by government agencies and courts, and may entail risks for companies and management. In addition, Russia has introduced a number of retaliatory countermeasures, significantly limiting the number of transactions and operations.
The current situation creates a difficult landscape for international companies that continue to operate in Russia to navigate, as well as creating complications for Russian companies that continue operating abroad.
On the one hand, non-compliance with foreign sanctions puts the entirety of a multinational in jeopardy, since in many cases such companies are required to comply with sanctions in accordance with foreign law. On the other, abiding by foreign sanctions while operating in Russia creates a situation where there is risk of facing liability, restrictions and other negative consequences within Russian territory.
Evgeny Roshkov discussed the pains faced by investors from both “friendly” and “unfriendly” jurisdictions. The choice of strategies for engaging with government agencies is influenced by the company's country of origin and the sector in which the investor operates. It was also observed that there are distinctions between private and public companies. A privately held company has the flexibility to respond promptly to events and make decisions that publicly traded firms may approach cautiously or with considerable difficulty.
It would be prudent in the future to refine the regulatory framework concerning Russian countermeasures to avoid excessively limiting foreign investment. It is crucial for economic growth not just in financial terms, but also in terms of competencies, know-how, and technologies.
At the end of his speech, Evgeny shared a life hack: due to the huge size of the country, a large number of regions, and the separation of powers, it is always possible to discover a collaborator to forge an alliance in tackling challenges together. If it is not found in one department, regulator, city, region, it will definitely be found in another.
The full version of the session is available via link
Since February 2022, pressure on Russia from a number of foreign countries has increased through the introduction of multiple rounds of sanctions. These restrictions are not recognized as legitimate on the territory of the Russian Federation, and compliance with them is negatively assessed by government agencies and courts, and may entail risks for companies and management. In addition, Russia has introduced a number of retaliatory countermeasures, significantly limiting the number of transactions and operations.
The current situation creates a difficult landscape for international companies that continue to operate in Russia to navigate, as well as creating complications for Russian companies that continue operating abroad.
On the one hand, non-compliance with foreign sanctions puts the entirety of a multinational in jeopardy, since in many cases such companies are required to comply with sanctions in accordance with foreign law. On the other, abiding by foreign sanctions while operating in Russia creates a situation where there is risk of facing liability, restrictions and other negative consequences within Russian territory.
Evgeny Roshkov discussed the pains faced by investors from both “friendly” and “unfriendly” jurisdictions. The choice of strategies for engaging with government agencies is influenced by the company's country of origin and the sector in which the investor operates. It was also observed that there are distinctions between private and public companies. A privately held company has the flexibility to respond promptly to events and make decisions that publicly traded firms may approach cautiously or with considerable difficulty.
It would be prudent in the future to refine the regulatory framework concerning Russian countermeasures to avoid excessively limiting foreign investment. It is crucial for economic growth not just in financial terms, but also in terms of competencies, know-how, and technologies.
At the end of his speech, Evgeny shared a life hack: due to the huge size of the country, a large number of regions, and the separation of powers, it is always possible to discover a collaborator to forge an alliance in tackling challenges together. If it is not found in one department, regulator, city, region, it will definitely be found in another.
The full version of the session is available via link