David Savage, sanctions expert at Eversheds, has commented on new foodstuff sanctions imposed on 7 August by Russia on EU/US companies.
He said: ‘The immediate ban on the import of specified foodstuffs into Russia has sizeable implications for both Russian citizens and western companies.
‘Western companies that have contracts to supply Russian counterparties and that have no suitable contractual protections in place face an unenviable choice between finding themselves in breach of contract or in breach of Russian sanctions.’
Equally, Savage added, the impact on Russian consumers is likely to be just as severe, with the price of commodities increasing as western supply dwindles.
‘What is as yet unclear, however, is how Russia intends to police its new regime,’ he said.