Russia has made trade and investment decisions that affect both businesses and individuals, based on a new nationally defined country of origin category – the “hostile country” list . These are mainly countries whose governments are perceived by Moscow as having adopted “hostile” positions towards Russia, including imposing sanctions and similar measures.
This is a complete list of countries and regions currently on the “Hostile Countries” list.
Albania, Andorra, Australia, Austria, Bahamas, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania , Luxembourg, Malta, Micronesia, Monaco, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, San Marino, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland , Taiwan, Ukraine, United Kingdom, United States and European Union.
British Overseas Territories – Anguilla, British Antarctic Territory, British Virgin Islands, Bermuda, British Indian Ocean Territory, Gibraltar, Cayman Islands, Falkland Islands, Montserrat, Pitcairn Islands, Saint Helena, Ascension , Tristan da Cunha Islands, South Georgia and South Sandwich Islands, Akrotiri and Dhekelia, Turks and Caicos Islands and the Crown Dependencies of Guernsey, Isle of Man and Jersey are also included in the United Kingdom.
There are a few things to note:
Individuals from hostile countries
There are not many practical problems regarding people from countries on this list. They can still go to Russia and get visas. The restrictions imposed on nationals of these countries are related to foreign exchange trading and similar financial activities and will not interfere with most normal activities. For further details, please contact us at russia@dezshira.com
It should be noted that all foreign persons residing and working in Russia, regardless of their origin, are allowed to repatriate money to their country of origin up to the amount of their salary paid in Russia.
Companies from hostile countries
Various restrictions apply to legal entities from hostile countries operating in Russia. Most apparent are the restrictions on repatriation of profits to the country of origin entity, which is currently prohibited. However, companies in friendly countries can repatriate up to US$1 million (or an equivalent amount) each month to their parent company. This led to corporate restructuring issues at the head office level to disburse or sell the Russian entity to registered subsidiaries based in friendly countries. Other company restrictions apply on a case-by-case basis and may be company specific. For clarification regarding business restrictions in Russia, please contact us at russia@dezshira.com. It is also worth noting that in almost all cases, Russia’s trade and investments with friendly countries show double-digit growth. Please ask us for specific friendly country trade data and strategic advisory assistance.
Overall impact of sanctions
It should be noted that many Western companies from “hostile countries” remain active in Russia and are not affected by sanctions regarding Russian import rules. This ranges from American fast food restaurants to European automobile sales via European fashion and consumables stores. For clarification on which items can be easily sold in Russia and are not subject to sanctions, please contact us at russia@dezshira.com
Geopolitical impact
The list of “hostile countries” includes 49 countries that have adopted sanctions against Russia. Most of them are in the West, while several are relatively minor states. According to the United Nations, the global community consists of 195 countries, which means that 146 countries have not taken any action against Russia and are maintaining normal trade and commerce activities as much as possible.
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About Us
In these uncertain times, we must emphasize that our cabinet does not endorse the Ukraine conflict. We do not do business with sanctioned Russian companies or individuals. However, we are well aware of new emerging supply chains, can advise on strategic analysis and new logistics corridors, and can assist in non-sanctioned areas. For example, we can help Russian companies expand their operations across Asia, including banking advisory services and trade compliance issues, since 1992.
We also provide financial compliance and sanctions services to foreign companies seeking access to Russia. Additionally, we provide market research and advisory services to foreign exporters interested in accessing Russia, as the economy seeks to replace Western-sourced products. For assistance, please email russia@dezshira.com or visit www.dezshira.com