Within one week of the Russian invasion of Ukraine, governments around the world passed some of the toughest and most coordinated sanctions in modern history. At breakneck speed, dealings with the Russian Central Bank and Russian travel to and through 33 countries’ airspace were banned, billion dollar projects were stopped, many Russian banks were blocked from using SWIFT, and powerful members of Vladimir Putin’s inner circle were individually sanctioned.
In Light of Russia Sanctions, Consider Your Conditions for Doing Business in Other Countries
Leaders must develop a sound, responsible strategy for doing business around the world.
March 15, 2022, Updated March 15, 2022
Summary.
The Russian invasion of Ukraine changed the role of business in their response to sanctions. Investors and businesses will need to reassess what strategies and models they should adopt in response to a ‘brave new world’ in which entry into a country is perceived of as implicit acceptance of that country’s political actions. The challenge for managers is to be ready not just for the Russia fallout, but to develop a sound, responsible strategy for the next country that breaks international order and launches into conflict. Recognizing where that may be, and perhaps even acting before it has reached the point of no return, can mean the difference between being lauded as a socially responsible firm and risking a total write-off.