In The News

Collateral Damage

India Business Law Journal

29 Mar 2022

John Smith and Chen Zhu spoke to India Business Law Journal for an article discussing the ramifications for India as Russia’s invasion of Ukraine continues.

“I don’t think the Russian government was expecting the EU, U.S., UK, and a number of other countries to agree to freeze assets of the Russian central bank – almost half a trillion dollars held around the world,” John said, adding that seven of Russia’s largest banks have been disconnected from the Society for Worldwide Interbank Financial Telecommunications international messaging system, a vast network of banks and other financial institutions to quickly and securely send and receive information.

“That’s why you’re seeing a staggering impact on the Russian economy,” John added. “Flight restrictions aren’t typical sanctions, but they’re having an effect. Russian flights cannot go over many jurisdictions, so travel and transit are restricted significantly, but flight paths are now longer, and that also costs Russian airlines a lot more to operate on a day-in and day-out basis.”

Chen added that there has been significant sanctions fallout in Russia. “It has been severe and wide-ranging. Stocks have fallen by up to 90% and the Moscow stock exchange has been closed for several days. Also, international energy market companies are scrambling to reassess their existing business with Russia, Belarus, and Ukraine.”

Read the full article.

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