SANCTIONS LEGAL REGIME OF BANKING ACTIVITY

Occupation: Professor of the Entrepreneurial and Corporate Law Chair
Affiliation: Kutafin Moscow State Law University (MSAL)
Address: Moscow, 9, Sadovaya-Kudrinskaya Street

Affiliation: Senior Legal Counsel of a law Firm «Weinrauch Rechtsanwälte» GmbH

Abstract

The focus of this article is a critical analysis of the current state of the theory, legislation, and application of the sanctions’ legal regime in banking activity. Objectives of the research: presenting the sanctions’ legal regime in banking activity in a comprehensive form from the standpoint of Russian and foreign legal orders, improving the domestic doctrine and formulating the basis of the concept of countering the sanctions pressure in the banking sector.

During the preparation of the article methods of analysis and synthesis, induction and deduction, interpretation, classification, as well as comparative, comparativist, historical, statistical and others were used. In particular, a comparative analysis was carried out by way of comparing the legal doctrine with related fields of disciplines, i.e., economics and politics. Given that sanctions are applied to the Russian banking system regardless of the sovereign will of state, the study had to cross national borders, relying on the comparativist method. Its application predetermined the reference to the normative legal acts of foreign countries and their unions. The historical method of research showed the retrospective status of issues and helped to identify the primary and secondary sanctions. The method of classification was also widely used, in particular, to organize knowledge about sanctions and measures to oppose them. In addition, the statistical method was used as well by means of collection of independent data, its monitoring and analysis. This enabled the assessment of the extent of the impact of sanctions on the Russian banking system as well as the identification of the promising direction to counteract the sanctions.

A new definition of the category «sanctions legal regime of banking activity» appeared as a result of the research.

According to the results of the study, it is being analysed and concluded that the term "sanctions" can be used to determine compulsory measures imposed unilaterally by individual states or their unions. The definition of the category "sanctions legal regime of banking activities" is also being presented. The sanctions of foreign states and their unions, depending on their adresse and content, are differentiated into personal (blocking or payment), in relation to the sector of state banks (financial), regional (the Crimea embargo) and country. The classification of sanctions according to the nature of jurisdiction into territorial and extraterritorial is proposed. The differences between the EU and U.S. sanctions policies are being revealed. The negative konsequentes of the impact of sanctions pressure on the Russian banking system were identified, which include limiting its access to foreign capital markets, blocking international assets, destroying the payment infrastructure, restricting the free circulation of cash currency: euros and U.S. dollars.

In conclusion, the need to develop the concept of countering the sanctions pressure on the national banking system is justified and its main postulates are formulated.

Keywords

sanctions; banking system; legal regime; personal sanctions; sectoral sanctions; regional sanctions; extraterritorial sanctions; countering the sanctions; sanctions compliance

Received

28.06.2023

Number of characters

44896

GOST	Tarasenko O., SANCTIONS LEGAL REGIME OF BANKING ACTIVITY // Gosudarstvo i pravo URL: http://ras.jes.su/gp/s102694520026428-1-1-en (circulation date: 27.04.2024).
MLA	Tarasenko, Olga A, , "SANCTIONS LEGAL REGIME OF BANKING ACTIVITY." Gosudarstvo i pravo DOI: 10.31857/S102694520026428-1
APA	Tarasenko O., (). SANCTIONS LEGAL REGIME OF BANKING ACTIVITY. Gosudarstvo i pravo DOI: 10.31857/S102694520026428-1

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