Since we last reported on this topic, the war in Ukraine has persisted and Western countries have continued to ramp up sanctions against Russia. In light of this unfolding situation, employers with workforces in Ukraine and Russia have raised many employment law questions – some of them unprecedented. We address seven of these main questions below:
There is no easy answer to this. The multi-lateral web of sanctions imposed by certain, mostly Western, countries, coupled with the Russian government’s own counter sanctions,1 have heavily restricted cross-border payments to and from individuals or entities in Russia.
As an initial matter, any payment to or from Russia (even if made to nonrestricted individuals or entities) likely violates the sanctions imposed by one country or another. Thus, any employer attempting to make such payments should consult with counsel specializing in trade sanctions to determine the availability of sanctions-compliant payments, if any.
Indeed, certain countries have clarified that even non-traditional means of payment, such as via cryptocurrency, would be considered an illegal circumvention of the sanctions. For example, the U.S. Department of the Treasury2 as well as Japan’s Financial Services Agency3 recently emphasized that cryptocurrency payments are subject to their respective country’s sanctions rules.
Given...
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