The U.S. government’s broad sanctions against Russia in response to the war in Ukraine include a ban on accounting and management consulting services by U.S. citizens.
Sanctions announced Sunday “prohibit U.S. persons from providing accounting, trust and business formation, and management consulting services to anyone in the Russian Federation,” the White House said. statement said.
The statement included further sanctions aimed at restraining Russia, which invaded Ukraine on February 24.
The sanctions, effective June 7, are imposed by the US Treasury Department’s Office of Foreign Assets Control (OFAC), which on Sunday Press release identified accounting and other services as categories “subject to prohibition on export, re-export, sale, or supply, directly or indirectly, from the United States, or by a U.S. person, anywhere is located, to any person located in the Russian Federation, pursuant to Executive Order (EO) 14071.”
It comes after UK Foreign Secretary Liz Truss announced last week prohibition of similar services. “The new measures will mean that Russian businesses will no longer be able to benefit from the UK’s world-class accounting, management consultancy and public relations services,” the UK press release said.
The process of disentangling business with Russia began several months ago, shortly after the invasion of Ukraine. To varying degrees, many organizations, including all of the Big Four accounting firms, have gone out of business and/or ceased doing business in Russia or with Russian companies.
Here is an example of an accounting firm’s statement on Russia, from early March by BDO: “No BDO firm will work with sanctioned Russian and Belarusian entities, including the Russian and Belarusian government, Russian and Belarusian state-owned companies and persons sanctioned as a result of the current situation in Ukraine.”
A statement released Monday by the Association of International Certified Professional Accountants, the combined voice of the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA), expressed support for the implementation of economic sanctions. and trade and other measures in response to the Russian military invasion of Ukraine.
“We will continue to monitor the situation for any further impact on the profession. Our primary focus remains the members, students and staff affected by this war. We are developing and publishing resources to help our members and the accountancy profession and broader financial situation to address pressing economic challenges arising from sanctions, supply chain disruption and other issues.”
In March, the Association announced a indefinite suspension services in Russia and Belarus.
Visit the Ukraine-Russia War Resource Center for more information.
— To comment on this article or suggest an idea for another article, contact Neil Amato at [email protected].