After Alexei Navalny’s death, Washington is reiterating its threat to target foreign banks over ties to Russia’s war effort

As the prospect of selling their operations in Russia becomes increasingly challenging, should European banks walk away from their Russian operations or wait it out? 

A year in, how are the sanctions imposed by the West on Russian entities, goods, assets and individuals taking shape?

The US, EU and UK have imposed an increasingly complex regime of sanctions on Russia as the war in Ukraine has evolved.

The war has led to difficult circumstances for the global financial system, leaving central banks with a tough choice. 

International banks face numerous challenges in leaving Russia, even after they have made their exit.

Following some of the harshest sanctions ever imposed on a country, Russia could face a banking crisis within a year as its economy braces for the worst contraction in nearly three decades.

How borrowers and issuers can navigate the exposure risk to recently sanctioned creditors is a difficult question to answer.

How can banks learn from this experience to be better prepared for future geopolitical conflicts?