Timothy O'Toole Comments on the Impact of Economic Sanctions on Russia to the Supply Chain
"Doing Business with Russia? Exceedingly Difficult, but Still Doable"
American Bar Association
Tim O'Toole discussed the Russian sanctions and how they affect government and non-government contractors as well as in-house and outside counsel. The sanctions on Russia pose many new legal hurdles for U.S. entities, but business can still be pursued in a more limited way. Nearly every type of good sold in Russia or to Russians now requires some sort of license, O'Toole said, adding that if a company was liquidating its Russian assets to a local entity – "like pennies on the dollar" – the transaction could be quite burdensome to meet U.S. regulations. O’Toole has counseled clients leaving Russia to destroy items rather than sell them because broken items don't need a license: "If you are leaving Russia, don't forget the sledgehammer."