By Mariana Volpi. Lawyer.
On the 24th of February, we all watched in astonishment as the Russian forces entered Ukraine, changing the world as we know it. Two weeks later, the conflict continues. As a result, several restrictive sanctions have been imposed on the Russian Federation to condemn the actions of Vladimir Putin.
The penalties, promoted by the UK, the US, and Europe, were supported by most countries. Even Switzerland left behind its tradition of neutrality to adopt sanction packages imposed by the EU against Russia.
Some Russian banks were excluded from the Swift messaging system, and the US, the EU, and the UK have banned people and businesses from dealing with the Russian central bank. In addition, the US, EU, the UK, and Canada banned Russian aircraft from their borders, among other measures.
As a result of these actions, Russia became isolated from the rest of the world. Inevitably, this will have effects on the sphere of IP Rights.
For starters, many companies are cutting commercial ties with Russia. They are not only leaving as a gesture of solidarity with Ukraine, but also due to the difficulties occasioned by the need to comply with the imposed sanctions: day-to-day logistics, such as paying foreign suppliers, importing necessary equipment to operate by air, and collecting revenue, got too complicated and might not be worth it. Apple, P&G, Ikea, KPMG, Walt Disney, BMW, Hermes, Adidas, and Nike are just some companies that have stopped or significantly reduced their commercial activity in Russia in the last few days. New international investments in Russia in this scenario are almost impossible to conceive. Most likely, all this will harm the practice of local agents: in the short term, fewer instructions will arrive, and the long-term growth potential of Russia is affected. Read more