Writing in the current issue of Canadian Lawyer Magazine, Jennifer Brown relays the opinions of several lawyers about the heightened level of business risk and need for greater due diligence faced by Canadian companies with new and existing operations in Russia following recent sanctions imposed by Ottawa.
“I don’t think it’s going to slow new business, but it certainly introduces a new level of business risk that needs to be considered when entering into new deals with Russia,” Vincent DeRose, national leader with the defence and security industry group at Borden Ladner Gervais LLP in Ottawa, is quoted as saying.
“The sanctions do not prohibit business with Russia but Canadian businesses looking to enter into transactions with Russian entities have a heightened level of vigilance they need to undertake now.”
DeRose suggests additional due diligence include the following:
1. Establishment of screening processes to ensure companies are not doing business on behalf of or with individuals identified by the sanctions;
2. Obtaining end use statements for contracts, purchase orders, or agreements, and include representations by those you are doing business with abroad that they are not acting as an agent or otherwise on behalf of any of the prohibited entities.
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