European companies are looking for loopholes to continue working in russia after the lifting of sanctions exemptions

Starting in June, EU companies will be prohibited from providing services to their subsidiaries in russia, which was previously allowed. The companies, in turn, are looking for ways to continue their operations in russia.

Currently, EU companies are allowed to provide professional services to their subsidiaries in russia, but are prohibited from providing the same services to other companies in russia. 

In December, the European Commission announced that this exception would no longer apply starting this year.

Instead of automatic authorization for services to their subsidiaries, starting from June 20, companies will have to obtain permission from national authorities for each type of service they provide in russia.

However, the news of additional restrictions has led to a search for ways to circumvent the new rules. Some companies are collecting lists of all services to submit to national governments a plan for working in russia under the rules, while others are considering working outside the EU.

"While many companies are working on obtaining permits, others may decide to move their functions to offices outside the bloc, which can be challenging given that sanctions circumvention is prohibited," said Skadden lawyer Michael Albrecht von Kohlke.

Source: Financial Times