It was noted that when conducting a transaction with Russia, even if it is not subject to sanctions, payment can be delayed or halted due to internal reviews by financial institutions, correspondent bank policies, and transport or insurance restrictions, so the sanctions and export control risks should be examined comprehensively from the start of the transaction.
Sejong LLC said on the 25th that it held the "1st Eurasia Diplomatic Roundtable" with the incorporated association Eurasia21 on the 20th at the Sejong GR conference room in Seoul and discussed key issues in South Korea-Russia economic cooperation and the potential for future cooperation.
The event was attended by Aleksei Sapetko, head of the Trade Representation of Russia in South Korea, Eurasia21 Chair Kim Su-eon, and Eurasia21 President Seong Won-yong, among others. Russian Ambassador to South Korea Georgiy Zinovyev, in congratulatory remarks, said that even as external constraints continue, it is necessary to keep exchanges between the two countries' corporations and experts going and to seek practical avenues for cooperation.
Participants cited sanctions and export controls and financial and payment issues as key practical tasks. Since transactions that are not sanctioned can also run into difficulties due to financial institutions' internal reviews, correspondent bank policies, and transport or insurance restrictions, an opinion was raised that from the start of the transaction it is necessary to check items and HS codes, end use, the transaction counterparty and beneficial owner, the settlement bank, transportation routes, and more together.
Sapetko explained that there is new cooperation demand between the two countries' corporations in fisheries, food, and agricultural products; consumer goods; and transport, production, and energy infrastructure. He also said the Russian Trade Representation can support Korean corporations in identifying local partners and relevant institutions.
In construction and infrastructure, an opinion was raised that entry requirements such as local corporate entities and construction licenses, technical standards, and qualifications and performance records by work type should be checked in advance. Regarding the Northern Sea Route, issues including navigation safety and seasonality, business feasibility, sanctions, insurance and payment, and port, icebreaking, and navigational support services were also discussed.
Sejong is advising on Russia and Central Asia-related investment and mergers and acquisitions (M&A), infrastructure and construction, trade, and sanctions and export controls through the Eurasia PG and the Northern Sea Route TF. Building on this event, it plans to pursue follow-up cooperation with the Russian Trade Representation and expand the scope of discussions to Central Asia and the Caucasus.