Sanctions risks reshape commodity trading
Commodity traders are operating in an increasingly fragmented sanctions environment where geopolitical developments can determine not only whether a transaction is lawful, but whether it can be financed, insured and ultimately completed, according to…
In the briefing, authors Daniel Martin, HFW partner, and Amanda Rathbone, HFW knowledge counsel (commodities) said that sanctions compliance has evolved from a specialist legal consideration into a central strategic concern for commodity businesses trading oil, gas, metals and agricultural products.
Martin and Rathbone warn that the sanctions environment is changing so rapidly that risks can evolve significantly during the lifecycle of a single transaction, from initial negotiations through to shipment, financing and payment. As a result, companies are increasingly being forced to reassess traditional compliance processes and adopt broader, more dynamic risk management strategies.
For commodity traders, geopolitical risk is no longer something that sits in the background of a transaction,
they wrote. “It is much higher on the agenda and for good reason: depending on the jurisdiction, it can determine whether a trade is both permissible and economically viable, whether banks will finance it, whether insurers will cover it and whether the board and shareholders are willing to back it.”
This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →
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