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Russia-Ukraine: Breach of international law by Russia

The Russian army's invasion of Ukraine is an open breach of international law. The international community has adopted sanctions against the Russian government and related parties. The sanctions are far-reaching and are likely to range from exclusion from the payment system, access to financial markets and the ban on the export of technological goods.

They affect large parts of the financial industry, and a "trade black list" is likely to include products and services of numerous companies.

Non-compliance with UN sanctions potentially leads to lower ratings upon disclosure, depending on severity. This information is displayed as part of the screenings (of "controversies").

In the case of the Russian invasion of Ukraine, the violation of international and human rights goes back to a member of the UN that has a veto right. The prerequisite for a UN decision on sanctions is therefore problematic.

Inrate will therefore review this rule. In individual cases, this could lead to rating changes. The sustainability rating of the Russian Federation is in a low range (deepest quartile) due to poor governance and a resource-inefficient and polluting economy.

Russian companies are part of the Inrate coverage, as they are constituents of market-wide and common indices.