Given the recent expansion of the regulatory landscape in light of the ongoing events in Russia and Ukraine, namely the imposition of extensive sanctions on Russia (and certain Russian banks and nationals), there has been a lot written and published on the black letter terms of the sanctions themselves. This update focuses on the common “secondary issues”, these being the commercial questions that arise from the implementation of sanctions that are most likely to impact on parties’ contractual obligations.

This post is a follow-up to our recent post "Ukraine in Crisis: What do the UK sanctions against Russia and Russian entities mean for your business? - A practical guide" on UK sanctions against Russia.

In light of Russia’s recent invasion of Ukraine, the international community has responded in new ways through packages of sanctions against the Russian state, Russian banks and named individuals. Amongst other things, UK measures cover a number of trade-related sanctions, namely in respect of energy-related goods or services, infrastructure-related goods, military goods and technical assistance, dual-use goods and technology transfers. Provision of financial sanctions or funds (as defined in the Sanctions and Anti-Money Laundering Act 2018) for such goods, services and technology is also prohibited.

Where are we today?

With sanctions being imposed by the international community on an almost daily basis on Russia (and certain Russian banks and nationals) since its threatened destabilisation and subsequent invasion of Ukraine on 24 February 2022, keeping up with the ever-changing position is a challenge. Both here in the UK and across the globe, numerous financial and economic sanctions, as well as extensive and novel trade sanctions, have been imposed, with more waiting in the wings, all with the goal of limiting Russian access to the international markets, restrict the functioning of international contracts and stopping the flow of money to the Russian state, certain financial institutions and some businesses.

Whilst the Arbitration Act 1996 (the Act) may be 25 years old this year, the key aims behind the Act, including that of upholding the finality of the award, continue to be reinforced by the courts. Last week the Courts and Tribunal Judiciary published the 11^th edition of the Commercial Court Guide. As well as introducing a number of changes reflecting the impact of Covid-19, the amendments made notable changes to section O (Arbitration), consistent with the arbitration-friendly approach the English courts steadfastly adopt, in supporting the finality of arbitral awards and discouraging speculative challenges.

Sam Fowler-Holmes, Partner, assisted by Jacqueline Cook, Of Counsel and Senior Knowledge Development Lawyer, presented our January webinar which looked at the second edition to A Practitioner’s Guide to Trade and Commodity Finance (“Guide”) which our Trade and Export Finance has updated and greatly expanded under the editorship of Geoffrey Wynne. The book, published at the end of 2021, marks a significant milestone for the firm marking ten years since the first edition. Sam gave a synopsis of what the Guide covers and how much development there has been in the area of trade, commodity and export finance and Jacqueline gave a round-up of some key legal and regulatory issues, some of which are still in development The Guide is based on English law and where appropriate gives some examples from other jurisdictions.

By Amanda Montano, associate, and Talal Khan, trainee

In the latest edition of Sullivan's webinar series, Geoffrey Wynne, Head of the Trade & Export Finance Group at Sullivan's London office, discussed key aspects of structuring trade finance transactions, including best practice approaches and risk mitigation. Geoff was joined by Jacqueline Cook, Of Counsel and Senior Knowledge Development Lawyer, who gave an informative overview of the key aspects of security used in trade finance structures. Here are some of the key areas discussed.

Written by Matilda Johnson, Trainee Solicitor

At the latest Trade & Export Finance webinar, Sam Fowler-Holmes, a partner in the Trade & Export Finance Group at Sullivan's London office, gave some valuable insight into what to consider before using a special purpose vehicle (SPV) in trade finance transactions. As SPVs become increasingly commonplace in trade structures, particularly in the receivables finance sphere, this is a timely opportunity to consider some of the "risks and rewards" associated with SPV structures.

It is starting to feel as if we are nearing the end of a long climb, in fact the end of a long period of uncertainty, for financial institutions and businesses alike, on how to deal with LIBOR transition. Having to keep an eye on regulators' statements, legislation, market developments and a large number of publications and webinars from trade bodies, takes quite an effort and indeed a considerable amount of time, not least when parties are also dealing with the economic fallout of the pandemic and trying to keep trade going. So, are we nearly there?

Together with Deutsche Bank and the International Trade Finance Association (ITFA), I am delighted to announce the publication of the 3^rd Edition of "A Guide to Receivables Finance."

In the six years since the publication of the second edition of the Guide, a great deal has happened in the world of receivables financing, not least in the areas of digitalisation, fintech and regulation. With the help of a number of industry experts, this third edition attempts to update the changes that have occurred in law and practice for all those who participate in receivables finance.

By Amanda Montano, associate, and Stefan Bateson, trainee

At the latest Trade & Export Finance webinar, Geoff Wynne, head of the Trade & Export Finance Group and Sullivan's London office, gave a whistle-stop tour of recent developments in digital options available in trade finance, including the multi-jurisdictional efforts to recognise electronic transferable records.