Risk Consultancy Warns Asian Companies to be Aware of Russian Exposure and Risk
As the armed-conflict between Ukraine and Russia continues, Steve Vickers, CEO of Risk Consultancy Steve Vickers and Associates warned Asian companies to be aware of the risk of Russian money, after Western countries imposed various numbers of Sanctions on Russia.
According to a report published by Steve Vickers, the initial sanctions were aimed at Russian President Vladimir Putin and related financial institutions. However, as Russia’s military operations continues, the scale of sanctions is rapidly growing. Recent measures are targeting the Central Bank of Russia which might be viewed as an act of economic war by Russia. Looking ahead, many countries might completely exclude Russian companies from the international payment system (SWIFT) and that an economic war between great powers seems inevitable.
More, Steve Vickers also pointed out that Russian money has been pouring into Asia in recent years, especially at the financial hub of Singapore, Vietnam and developing economies with ties to the former Soviet Union. Until now, financial institutions are relatively lenient on handling these capital and therefore subject to recent restrictions imposed by US and its allies. He added that many Russian capital are hidden behind layers of off-shore companies or being held through proxy.
He suggests company directors and managements to review existing commercial relationships and clients, to make sure they are not effected by the aforementioned measures. If companies are not ready to face these challenges, the consequences could destroy businesses and also legal consequences for company directors and management.
(Original – Chinese version)
俄烏戰火持續，風險顧問公司Steve Vickers and Associates行政總裁Steve Vickers表示，西方國家針對俄羅斯入侵烏克蘭實施一系列制裁措施，亞洲公司必須審視俄羅斯資金的風險。