Despite the rapid increase in western sanctions imposed on Russia since February 2022, there are still many loopholes in the system decreasing sanctions effectiveness, which pose challenges to firms and could soon be targeted by more stringent compliance regulations, which FiveBy reported about in an alert earlier this year.
Companies in energy and humanitarian sectors, as well as those transacting with risky third countries could see stricter requirements in the coming months as western regulators aim to tighten the existing sanctions regime.