LONDON – Government application of economic sanctions is on the rise, and that can create complications during an age of global trade. Companies in a wide range of industries – including base oils and finished lubricants – need to keep abreast of both financial and trade sanctions and account for them in their operations and business planning, according to speakers at a conference here last week.
Governments impose different types of sanctions, Zia Ullah, a partner at international law firm Eversheds Sutherland, explained during the ICIS World Base Oils & Lubricants Conference, and businesses need to grasp the differences between them. Financial sanctions freeze funds and economic resources of the target, prohibit making funds or other economic resources available to the target directly or indirectly, or prohibit transferring funds over certain national borders without a license. This goes beyond just freezing bank accounts to restrictions on a wide variety of financial markets and services.
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