MSC Stops Trade with Sanctioned Russian Entities

Mediterranean Shipping Company (MSC) has stopped any new trade with Russian entities targeted by U.S. sanctions, the world’s number two container group said on Tuesday.

The United States on April 6 imposed sanctions against Russian entities and individuals to punish Moscow for its alleged meddling in the 2016 U.S. election and what the U.S. Treasury Department dubbed other “malign activity”.

“MSC immediately instructed its worldwide agencies not to engage in any new contracts involving U.S. specially designated nationals listed under the … Russia sanctions programme,” a spokesman for the Swiss-headquartered firm said.

“MSC is also reviewing current business relationships to see if any are impacted by these latest amendments, in line with the timetable set out by the U.S. government.”

The world’s largest container group, Maersk Line , said in a note to customers it would stop accepting cargo “with a reasonable determined relation” to blacklisted individuals or entities and would stop accepting payments made by such entities.

The MSC spokesman declined to comment on any specific companies or entities affected by its decision to halt new trade.

U.S. President Donald Trump has delayed imposing additional sanctions on Russia, but the U.S. measures have already had an impact.

Mining group Rio Tinto said it will declare force majeure on certain customer contracts after U.S. sanctions were imposed on its partner, Russian aluminium producer Rusal.

Source: Reuters