Russia Sanctions

As conflict in Eastern Europe brings supply chain disruptions, global economic impacts and international sanctions against Russia. We will posting shipping line updates in response to the ongoing and rapidly changing security situation in Ukraine, including operational contingencies and the handling of in-transit cargo.

The main new sanctions on Russia are restrictions on doing business with a number of Russian banks and financial restrictions on 8 members of Russia’s Security Council. Where appropriate, question from which bank you will be making payment to.

In addition, Australia has extended sanctions to the Donstsk and Luhansk regions of the Ukraine. These sanctions are wider than the Russian sanctions and prohibited the supply of infrastructure for the transport, telecommunications or energy sectors or for the exploration of oil, gas or mineral reserves in Donstsk or Luhansk.

In a more extreme measure, the purchase or import of any goods that originate in, or are exported from, Donstsk or Luhansk is prohibited. This is subject to goods which have been presented to Ukrainian authorities for examination.

These new sanctions apply from 28 March 2022.

It is important to remember that the sanctions apply to indirect trade and also to goods of Russian, Donstsk or Luhansk origin exported from other countries. Particular care should be taken with any new trade lanes that involve countries in Eastern Europe. With direct trade to the sanctioned countries more difficult, suppliers are likely to use an Eastern European port.

Note:

It is still legitimate to trade with Russia in respect of most goods but clients need to be warned of the following:

1. New wider sanctions could be introduced with very little warning (even if 30 days’ warning is given, this will sufficient for sea freight from Russia). This could mean that goods purchased from Russia legitimately cannot be imported by the time they arrive in Australia.

2. Routes out of, and into, the affected areas wills be disrupted and it is possible that goods could be stuck at ports for prolonged periods. This could lead to very large detention charges.

3. The need to follow not only the development of the Australian sanctions but also those of other countries, particularly the US. The US attempts to extend its sanctions to any company that uses US banks or has some connection to the US. Other countries may extent their sanctions to entities that have a permanent residence in their country. This could become particularly problematic if sanctions extend beyond Russia to those countries that support Russia.

In addition to warning at risk, it is also important to ensure that you have accepted our terms and conditions and that you are able to pay, even if the consignment is seized or delayed.

Please contact an Image International Freight representative, sales@imageinternational.com.au , if you have any concerns regarding the implementation of sanctions in response to the Ukraine crisis.