Documentary letters of credit under sanctions

Authors

  • Tatyana Dmitriyevna Masykova Russian Foreign Trade Academy
  • Polina Sergeyevna Platonova Russian Foreign Trade Academy
  • Yuri Anatolievich Savinov Russian Foreign Trade Academy

Keywords:

letter of credit, documentary operations, sanctions, SWIFT, trade finance, ICC

Abstract

This article considers the impact of sanctions against Russia’s financial sector on documentary operations and trade finance. It is noted that there is limited access to the capital markets, the rising cost of trade finance for clients of Russia’s banks, the transition from the traditional funding currencies to the regional ones, increase in the time for processing payment by documentary credit due to the requests of foreign banks with regard to the details of a transaction. The article examines the possibility of disconnection of Russia from the SWIFT system, the ICC’s experience in working with documentary instruments under conditions of sanctions.

Author Biographies

Tatyana Dmitriyevna Masykova, Russian Foreign Trade Academy

Candidate of Economic Sciences, Associate Professor

Work place, position: Russian Foreign Trade Academy, Department of Finance, Monetary and Credit Relations, Professor

Polina Sergeyevna Platonova, Russian Foreign Trade Academy

Work place, position: Russian Foreign Trade Academy, Department of Finance, Monetary and Credit Relations, Postgraduate student

Yuri Anatolievich Savinov, Russian Foreign Trade Academy

Doctor of Economic Sciences, Professor

Work place, position: Russian Foreign Trade Academy, Department of international trade and foreign trade of RF, Professor

Published

2024-02-08

How to Cite

Masykova, T. D., Platonova, P. S., & Savinov, Y. A. (2024). Documentary letters of credit under sanctions. Russian Foreign Economic Journal, (5), 29–42. Retrieved from https://journal.vavt.ru/rfej/article/view/2263

Issue

Section

Foreign trade activity