COMMODITY traders, insurers and shipping groups are among western companies approaching lawyers for advice on how to revive trade with Russia, in preparation for a potential lifting of US sanctions on Moscow, reports London's Financial Times.
Many western companies appeared to write off their Russian business after the US and Europe responded to Vladimir Putin's 2022 invasion of Ukraine with the most expansive sanctions regime in history.
But US President Donald Trump's pursuit of a rapprochement has raised the possibility that restrictions could be relaxed.
In response, companies have been asking how they might structure their activities to allow them to restore trading with Russian entities, according to legal advisers, particularly if the US eases its sanctions on Moscow but EU and UK restrictions remain in place.
'The bifurcation of the US and Europe is a major issue for business at the moment,' said Sam Tate, global head of regulatory and investigations at law firm Clyde & Co.
'Some companies are planning for this change and what it means for their business and what they can do to prepare for it,' he said.
Daniel Martin, a partner at London law firm Holman Fenwick Willan (HFW), said that historically, western companies had designed their sanctions policies to comply with US measures, which were almost always the most restrictive.
Clients were now asking whether they needed to redesign those programmes to align in the first instance with Europe, given its more aggressive stance on Russia.
'It doesn't seem likely to me that any sort of sanctions relief would involve all US sanctions being lifted straight away,' said HFW's Mr Martin. 'Right now it's a question of 'let's map out what's in place at the moment and let's make our best estimate of what might happen from a US perspective'.'
If US sanctions were eased, oil traders would probably seek to re-engage with Russia more quickly than oil producers, which would need to make bigger investments in order to restart.
Mr Martin warned that companies would need to weigh the risk that the US could ease sanctions and then re-impose them, if Mr Putin was perceived to have reneged on any deal.
'There may well be traders who can see that there are lucrative commercial opportunities in re-engaging in this trade but if they can't get their banks, insurers and carriers back on board then they may find that more difficult,' he said.
SeaNews Turkey
Many western companies appeared to write off their Russian business after the US and Europe responded to Vladimir Putin's 2022 invasion of Ukraine with the most expansive sanctions regime in history.
But US President Donald Trump's pursuit of a rapprochement has raised the possibility that restrictions could be relaxed.
In response, companies have been asking how they might structure their activities to allow them to restore trading with Russian entities, according to legal advisers, particularly if the US eases its sanctions on Moscow but EU and UK restrictions remain in place.
'The bifurcation of the US and Europe is a major issue for business at the moment,' said Sam Tate, global head of regulatory and investigations at law firm Clyde & Co.
'Some companies are planning for this change and what it means for their business and what they can do to prepare for it,' he said.
Daniel Martin, a partner at London law firm Holman Fenwick Willan (HFW), said that historically, western companies had designed their sanctions policies to comply with US measures, which were almost always the most restrictive.
Clients were now asking whether they needed to redesign those programmes to align in the first instance with Europe, given its more aggressive stance on Russia.
'It doesn't seem likely to me that any sort of sanctions relief would involve all US sanctions being lifted straight away,' said HFW's Mr Martin. 'Right now it's a question of 'let's map out what's in place at the moment and let's make our best estimate of what might happen from a US perspective'.'
If US sanctions were eased, oil traders would probably seek to re-engage with Russia more quickly than oil producers, which would need to make bigger investments in order to restart.
Mr Martin warned that companies would need to weigh the risk that the US could ease sanctions and then re-impose them, if Mr Putin was perceived to have reneged on any deal.
'There may well be traders who can see that there are lucrative commercial opportunities in re-engaging in this trade but if they can't get their banks, insurers and carriers back on board then they may find that more difficult,' he said.
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