Sanctions against Russia for the aerospace industry

Sanctions imposed on Russia by the EU and U.S. since 2014, which intensified in 2022, have created a complex regulatory landscape for businesses. These sanctions aim to weaken Russia's economy by restricting access to critical technologies, items and markets, thereby limiting its military capabilities. Since March 2022, regulations have evolved, with governments taking stronger stances on supply chain accountability. A key development has been the focus on circumvention and diversion to close loopholes and ensure sanctions effectively limit Russia’s military operations. This shift requires export control and sanctions departments to monitor activities beyond export control classifications, including post-export activities outside the companies’ direct control, adding unprecedented complexity. This thesis evaluates how effectively aerospace companies, specifically Original Equipment Manufacturers (OEMs) can comply with the sanctions against Russia, particularly concerning diversion and circumvention. Literature highlights that the effectiveness of sanctions depends on the regulatory environment, including the clarity of instructions and the capacity to monitor and enforce regulations.