News / Forwarders vexed by the many updates to Russian sanctions regime

Forwarders say they are finding it increasingly difficult to keep up with changes in European and US sanctions policy.

Several have told The Loadstar it had become “a full-time position” monitoring updates to sanctions on Russia and on businesses doing business in the country.

“Has it?” one forwarder responded when told the Council of Europe had on Monday unveiled a new package of sanctions.

This, the 16^th round of sanctions since Russia’s invasion of Ukraine three years ago this week, says carriers operating domestic services in Russia are prohibited from flying from, to, or over the European Union, extending a ban already active against Russian carriers.

It follows signals from Moscow that it may open domestic market access to foreign carriers in an effort to offset sanctions-inducted aircraft shortages.

Alongside this, the council will impose sanctions on any international company supplying aircraft or sanctioned goods to carriers that choose to operate in Russia’s domestic market.

One forwarder suggested the latest changes would likely prompt a rethink on how they do business, and possibly a review into suppliers and partners.

Others say they remain unfazed by the sanctions themselves, but were rather more vexed by the need, and the resources involved, to keep up to date with changes to them and the impact on their businesses.

Several forwarders told The Loadstar this was where multinationals really had an advantage over the smaller independent operators.

“Bigger forwarders have in-house attorneys and legal teams working to ensure they stay compliant in these moments of change, but smaller operators lack the necessary capital to cover such an expense,” they explained.

“And I think this is why you see more SMEs getting into situations where they have breached the sanctions regime.”