Questions and answers for entrepreneurs in the Netherlands
Sanctions against the Russian Federation and the Republic of Belarus in connection with the Russian military invasion of Ukraine were expanded in several stages. On March 15, EU permanent representatives (COREPER) approved the fourth package of sanctions, which bans the import of Russian steel and iron products, as well as the export of luxury goods to Russia.
And this is not the end of the process of tightening sanctions. In order to objectively assess the situation, you have to track changes literally on a daily basis.
It is difficult for Dutch entrepreneurs to understand what consequences the sanctions will have on international trade. And most importantly: how to reduce the risks for your own business in connection with the sanctions? We'll figure out!
- Which states and regions are subject to sanctions?
Do not forget: the EU sanctions policy applies not only to the Russian Federation, but also to the Republic of Belarus (more on this - here to register:), as well as to the territories temporarily not controlled by Ukraine - Crimea, parts of the Donetsk and Lugansk regions.
- How to check if sanctions affect your company or a specific operation?
According to the recommendations of the Dutch Enterprise Development Agency (Rijksdienst voor Ondernemend Nederland, RVO), verification must be carried out according to three criteria:
- check goods and services (export and import);
- check counterparties: business partners (individuals), enterprises and organizations;
- check Russian counter-sanctions.
In response to Western sanctions, Russia introduced counter-sanctions. For example, the import and export of some goods from the EU (including the Netherlands) has been restricted or stopped.
- How to make payments to Russia and accept payments from Russia now?
Since March 12, the following Russian banks have been disconnected from the SWIFT international payment system:
- Bank opening;
- Novikombank;
- Promsvyazbank (PSB);
- Bank "Russia";
- Sovcombank;
- Vnesheconombank (VEB.RF);
- Bank VTB.
Payments associated with these banks are almost impossible to carry out. The situation regarding other banks must be clarified individually. We recommend that you do not make payment transactions to Russia without first contacting your bank in the Netherlands. Each bank may impose stricter rules for accepting and sending payments related to Russia than recommended by the government.
- What about sending goods to Russia/Belarus from Rotterdam?
If you plan to send cargo to sanctioned countries, then get ready for a delay. At the port of Rotterdam, Customs conducts spot checks on cargo and documents for import or export. Shipments may be opened to check if their contents are consistent with the accompanying documents. If there are suspicions of violating sanctions Central Import and Export Service (Centrale Dienst voor In- en Uitvoer, CDIU) conducts an investigation.
Note! Since the introduction of the first sanctions, 13 containers have been checked, 000 of which have been sent for additional research. After the introduction of a new package of sanctions, customs checks goods that were previously allowed through without checking. For example, after the introduction of the fourth package of sanctions, 700 containers had to be re-evaluated: they had already been released, but were still under customs control.
- Where to contact with questions about export to Russia?
Contact the Central Import and Export Service (Centrale Dienst voor In- en Uitvoer, CDIU) of Customs. This body provides official clarifications on export and import issues, and is also responsible for issuing export and import licenses.
If your business already has an EORI number - Economic Operators Registration and Identification number in the customs territory of the European Union - you can contact the customs officer with whom you have already contacted.
- What about air travel?
EU airspace is closed to all Russian aircraft, while Russian airspace is closed to air traffic from EU countries. European airlines are no longer allowed to fly to or over Russia. As a result, air traffic capacity is reduced.
Flights to China and East Asia (including Japan and South Korea) must now overfly. As a result, flights last longer. Aviation fuel prices are also on the rise. As a result, airlines may raise prices for cargo transportation.
- What about the movement of trains through Russia along the New Silk Road?
It is still possible to transport goods along the Russian part of the New Silk Road. This 11.000-kilometer rail route between China and Europe continues to operate, but goods may take longer to reach their destination.
Entrepreneurs looking for alternative routes for the New Silk Road, in particular, choose the longer southern corridor through the Caspian Sea and Baku (Azerbaijan).
- How to avoid doing business indirectly with a sanctioned counterparty?
This situation may occur if you provide assets and "economic resources" to companies that are owned or controlled by entities included in the sanctions list (individuals or legal entities). For example - you provide services such as software support.
In this case, it is important to understand the concept of "economic resources" in accordance with Article 1 (d) Regulation (EU) No 269/2014. And if you have any doubts, it is better to involve an experienced consultant in resolving the issue.
- What happens if you violate the sanctions regime by accident?
The Sanctions Act 1977 states that non-compliance with sanctions is punishable by law. In the absence of intent, this is regarded as an economic offense.
If the sanctions are violated intentionally, then we are talking about the commission of a crime, which entails the initiation of a criminal case, that is, the threat of criminal punishment.
In order not to accidentally violate the sanctions regime, check goods, services and counterparties according to the algorithm that we mentioned at the beginning. Do you have any questions about this? Contact Nalog.nl for clarification.
- Where can I report sanctions violations anonymously?
To do this, you can use the Sanctions Communication Tool − EU Sanctions Whistleblower Tool.
The information reported may relate to violations of EU sanctions, the circumstances of such violations or the persons, companies and third countries involved, which are not publicly known but are known to you. The message may cover past, current or planned violations of sanctions, as well as attempts to circumvent EU sanctions.
- How to prepare your company for cyberattacks and is it relevant at all?
The Russian invasion of Ukraine was accompanied by a sharp increase in the number of cyberattacks. In particular, we are talking about DDoS attacks and phishing.
Today National Cyber Security Center (NCSC) does not record any war-related digital attacks directed against the interests of the Netherlands. But events in Ukraine continue to create uncertainty. Dutch companies could be hit by a chain reaction as a result of attacks related to the war in Ukraine.
To minimize the impact of cyberattacks on your business, you should follow the NCSC guidelines as set out on this service's website.
- How to help company employees in Ukraine or Russia or take them to the Netherlands?
The Embassy of the Netherlands in Ukraine temporarily moved from Lviv to Poland, to the city of Yaroslav (Jarosław). The Embassy of the Netherlands in the Russian Federation in Moscow is open. The Dutch government encourages the Dutch in Russia to register in Moscow at the Dutch embassy.
For staff relocation, you can contact the Ministry of Foreign Affairs (Ministerie van Buitenlandse Zaken) on the emergency number: +31 247 247 247.
- How do you know if sanctions will have an impact on a particular business?
If you sell services, goods or technologies that are directly or indirectly supplied to Russia, then most likely yes.
- Does the Dutch government plan to compensate companies for losses from the sanctions policy?
At present, there is no question of national compensation for sanctions. The European Commission is investigating whether such measures are needed in the European context.
The Netherlands takes on a fair share of the burden of consequences from anti-Russian sanctions, which is shared among EU member states. If member states suffer disproportionately, the EU may later consider compensating those member states that suffered more.
- How to mitigate the consequences of sanctions for business?
Dutch Enterprise Development Agency (Rijksdienst voor Ondernemend Nederland, RVO) encourages active search for alternative markets.
- What can an entrepreneur do to limit the impact of sanctions on business?
- develop the habit of checking the product and counterparty before making a trade;
- learn more about customs practices at the ports of Rotterdam in response to the fourth round of EU sanctions;
- enter into partnerships with Russian companies with caution and only after a thorough risk analysis;
- request verification of the company with which you do business or want to do business with the Dutch embassy in Russia.
- Where to go for help?
Support for entrepreneurs in the Netherlands, including on issues of anti-Russian sanctions, is provided by the Dutch Enterprise Development Agency (Rijksdienst voor Ondernemend Nederland, RVO).
Dutch entrepreneurs in Russia can benefit from support Information Service of the Ministry of Foreign Affairs (Informatieservice Buitenlandse Zaken).
Professional advice on an individual basis, taking into account the characteristics of your business, ready to provide experts from Nalog.nl. Even in these difficult times, attention to legal and accounting nuances makes it possible to run a stable business and make a profit.
Publication Date: 08.04.2022
