Sanctions and other useful information in response to crisis in Ukraine

Introduction

Please use the tabs on the left hand side of this page for further information (which is being updated regularly ) on sanctions as they relate to Ireland, the United Kingdom, Europe & International and items that are in the news including links to interesting articles .

As a result of the Russian invasion of Ukraine in February 2022, focus has intensified on the area of sanctions which are being introduced at an unprecedented pace. These webpages seek to centralise information and resources for members to help them comply with their obligations. The situation on sanctions is fast moving so please check back on the pages for periodic updates.

In Ireland, financial sanctions emanate from the EU and the UN, and are contained in sanctions lists. All natural and legal persons are required to comply with financial sanctions. This requires monitoring the EU and UN lists and taking appropriate action, more details of which are given below.

It is a criminal offence not to comply with sanctions and firms which do not comply also risk reputational damage.

CCAB and CCAB-I Guidance

On 2 March 2022, CCAB issued a joint statement to the profession following recent and ongoing developments in Ukraine.  This guidance concentrates on our UK based members’ obligations in relation to sanctions, ethical considerations and obligations under AML legislation.

On 4 March 2022, Chartered Accountants Ireland, together with the other members of CCAB Ireland, issued a joint statement to the profession following recent and ongoing developments in Ukraine. This guidance considers Irish members’ obligations in relation to sanctions, ethical considerations and obligations under AML legislation.

In March 2022 CCAB-I issued its updated Anti Money laundering guidance for accountants. While the main focus is general anti money laundering guidance for members and others, there are some paragraphs included in relation to sanctions at 5.2.28. Readers are also reminded that one of the geographical risk factors for potentially higher risk of money laundering or terrorist financing listed in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 is countries subject to sanctions, embargos or similar measures issued by organisations such as, for example, the European Union or the United Nations.

Professional Indemnity Insurance Considerations

Members are reminded that the imposition of sanctions may impact on the operation of exclusion clauses (if any) in their Professional Indemnity arrangements and should ensure that they check the current position with their providers.

Caselaw corner

See the Irish High Court judgment (August 2022) of Sanfey J in the case of Pola Logistics Limited as plaintiff and GTLK Europe DAC, GTLK Malta Four Limited and Central Bank of Ireland (CBI) as defendants. The judgment is available free of charge from the Irish courts service website and see some further information on the case under the "Irish Central Bank " heading on "Ireland" page.

A UK High court case in July 2022 saw minority shareholders of London-listed gold producer Petropavlovsk failing to persuade an English judge to adjourn its sale to a Russian metals’ producer, days after he allowed the transaction to go ahead in the wake of UK and EU sanctions. See in particular the Appendix to the judgment which considers the application of the relevant sanctions’ legislation to the present case, the relevant UK sanctions legislation and the relevant EU sanctions regime. Click here for a short article by Taylor Wessing on the case.

Click here for the UK case in August 2022 in the matter of Nostrum Oil & Gas Plc ('The Company') and in the matter of the Companies Act 2006 which considered the issues of sanctions and applications for licences .Click here for an article by Brodies LLP containing its insights into this case and  Petropavlovsk plc (in administration).

Sanctions and legal representation -Navigator Equities Ltd v Deripaska [2022] EWHC 1637 (Comm) and  Maroil Trading Inc v Cally Shipholdings Inc [2022] EWHC 1201 (Comm).See Herbert Smith Freehills September 2022 article on the subject.

Acknowledgement that any links to BAILII website (above) are free. 

These pages are provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

Chartered Accountants Ireland can accept no responsibility for the content on any site that is linked to/from the Institute website. Links are provided in good faith for the potential support of members and students.