Risks in cooperation with Russian and Belarusian companies

Risks in cooperation with Russian and Belarusian companies

To continue business interactions with the occupiers today is to be complicit in crime, unless the situation is addressed. Working with contractors from adversary nations and doing business with Russia and Belarus is undeniably risky because the odds are incredibly high that they will occur:

  • negative impact on finances;
  • losses in operations;
  • loss of reputation.

Sanctions imposed by Ukraine, USA, EU, Britain, Canada and other countries are primarily responsible for the situation.

There are four types of business risk factors:

  • freezing of assets;
  • limitations on financial and business activities; reduce financial risks.
  • prohibiting foreign economic activity, transit, and transportation;
  • the cancellation of licenses and permits;
  • restriction on entry;
  • halt of cultural, scientific, and other exchanges.

Due to this being applied today, businesses in Russia and Belarus are already being destroyed.

Sanctions often have mechanisms that automatically apply prohibitions and restrictions to those cooperating with sanctioned companies. These companies: Russian, Belarusian, and all those associated with them, become "toxic".

Banks can effectively identify such risks through modern analytical systems and block or freeze funds, depriving counterparts of a sanctioned company of the opportunity to conduct any transactions with it. This results in the inevitable destabilization of such risky businesses.

Cooperation with businesses from these countries is indirect support for international aggression since military spending is funded by their taxes.

Law enforcement and control agencies can conduct more detailed checks as a result of such cooperations.

Due to open data sources and the media, the particulars of this sort of cooperation are made known. This tarnishes the image of businesses working with aggressor country companies, which are widely condemned for its aggression in Ukraine. As people worldwide are against war, their desire to work for such businesses is diminished, resulting in lowered productivity.

In light of recent events, businesses that want to thrive and grow must refuse any partnership with Russian and belarusian companies, their beneficiaries and partners.

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