Regulation or Ethics?

With the Russian Ukrainian war entering its Day 393 today. Ceterus Consultants often receives questions on the regulatory requirements to export the item to Russia. A matter that requires research to check sanctions lists, nature of item and a myriad of other issues. However, what we would like to talk about is: Why are some businesses still trading with Russia? With regards to the original question, yes, they are trying to keep it right, making sure that all legal aspects are spot on. Yes, they are probably not dealing with items or services directly supporting the conflict. But they still dealing with an aggressor and injecting power into its economy and so helping finance Russia’s aggression and indirectly weakening sanctions designed to pressure Moscow.

Are these businesses prioritising the economic health of their companies or do they consider there are morally sound reasons why boycotting Putin’s Regime would be the wrong tactic? Do they feel that they must be loyal to their customers, whoever they may be? Or they simply never contemplated the implications of their trade.

Whatever the reason, the fact is: a year into the war, hundreds of Western businesses are still in Russia, including blue-chip and midsize companies from Europe and the United States.

According to the Department for Business & Trade (released: 17 March 2023), total trade in goods and services (exports plus imports) between the UK and Russia was £11.9 billion, in current prices, in the four quarters to the end of Q3 2022. Technically we only talking a decrease of 25.2% or £4.0 billion from the four quarters to the end of Q3 2021. Correct me if am wrong, but in general we are around 75% “business as usual” with an aggressor country.

How ethical is that? At what point should we stop worrying about “if we can” and focus on “if we should”? Should we be asking ourselves: does my business helps to prolong suffering of innocent Ukrainians?

Not an accusation, just an observation.