Russia, "Considering Criminal Penalties for Western Sanctions Participants and Supporting Companies"

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[Asia Economy Reporter Hyunwoo Lee] The ruling party of Russia, United Russia, has announced that it is considering measures to criminally punish companies that participate in or support Western sanctions, sparking anticipated controversy. This move is interpreted as an effort to pressure domestic companies reluctant to deal with Russian banks and companies listed on Western sanction lists.

On the 14th (local time), according to Russia's TASS news agency, Andrey Turchak, Secretary General of United Russia, stated in a press release, "We will consider measures to criminally punish companies that participate in or support Western sanctions," warning that "such actions within Russia are no different from treason and will be met with severe legal consequences."

He continued, "Amid the hysteria over Western sanctions, there are cases where Russian companies, including those with government stakes, refuse to deal with sanctioned banks or companies out of fear that they themselves might be sanctioned," adding, "United Russia proposes to impose strict responsibilities, including criminal liability, on such companies and their leadership for complying with and implementing Western sanctions, and the party will soon prepare related legislative amendments."

However, he did not specify whether the amendments would apply only to domestic companies or also to foreign companies operating in Russia. If extended to foreign companies, concerns are rising that companies from countries designated as unfriendly by Russia for participating in Western sanctions would be targeted. Previously, on the 7th, the Russian government designated 48 countries, including the United States, the United Kingdom, Australia, South Korea, Japan, and European Union (EU) member states, as unfriendly countries for joining sanctions against Russia.

Following the Russian government and parliament's announcement of measures to nationalize the assets of companies from unfriendly countries that have withdrawn from Russia, the consecutive announcements of considering criminal penalties for companies participating in sanctions are expected to intensify domestic and international controversy.

This content was produced with the assistance of AI translation services.