The 50th G7 Summit was held this past week from June 13-15 in Puglia, Italy.  As one of the only law firms with sanctions experts in every G7 country, we monitored the Summit with our eyes and ears open for clues on the G7’s collective sanctions priorities — and what they mean for our clients who do business across the G7.  

We share our thoughts below.  The authors of this blog post include representatives of our sanctions teams in our offices from each of the G7 members – Italy, the United States, the UK, Germany, France, Canada, and Japan.  Our comments are based on the official G7 Leaders Communiqué published on June 14, other statements and reports coming out of the meeting, and our local experience. 

In the days leading up to the meeting, the United States, UK and Canada already released new sanctions packages that included some of these elements. (A blog post on the UK measures is here, one on the US measures is here, and one on the Canadian measures is here.)

  1. Using Frozen Russian Assets for Ukraine:  The G7 leaders reached an agreement to use approximately USD 50 billion in frozen Russian sovereign assets to help Ukraine’s reconstruction.  The funds will be provided to Ukraine as loans by the end of this year.  These loans will be serviced and repaid by the interest flowing from frozen Russian assets in the European Union and other relevant jurisdictions.  Russia is expected to impose countermeasures in response to this development. 
  2. More Russia Sanctions:  The G7 members will continue to impose more sanctions targeting Russia, which could include measures against financial institutions and other parties in China and other third countries that the G7 members determine have materially supported Russia’s military.  The G7 leaders also stated that they will impose more sanctions on parties engaged in deceptive practices in the transport of Russian oil and those seeking to evade the price cap.  In addition to the recent new US, UK, and Canadian sanctions mentioned above, the EU continues to actively discuss the scope of its 14th sanctions package, which could bring about some material changes.
  3. Focus on Sanctions Evasion and Enforcement:  There is a continued emphasis on enforcement of the existing sanctions targeting Russia, especially against those engaged in sanctions evasion.  The G7 leaders also connected Russia to efforts to evade the sanctions targeting North Korea’s weapons of mass destruction and ballistic missile programs.
  4. Possibility of More Iran Sanctions:  The G7 leaders communicated their readiness to impose further sanctions against Iran if Iran continues its destabilizing activities in the Middle East.
  5. Assessing Export Controls:  The G7 members will continue to assess the risks arising out of exports of dual-use technologies.  The G7 leaders stopped short of promising to impose new export controls, but their statements indicate that they will consider additional export controls.  At the same time, the G7 leaders called on China to refrain from export controls that could cause significant global supply chain disruptions, particularly export controls on critical minerals.
  6. More Focus on Foreign Investment Screening (including Outbound):  The G7 leaders stated that they will work on the effectiveness of their foreign investment screening regimes.  They communicated a belief that measures to address outbound investment risks “could be” an important complement to export controls and inbound investment regimes.  The United States is leading the charge on such efforts, with outbound investment regime regulations in the works that are expected to be published very soon.
Author

Ms. Contini focuses her practice on export controls, trade sanctions, and anti-boycott laws. This includes advising US and multinational companies on trade compliance programs, risk assessments, licensing, review of proposed transactions and enforcement matters. Ms. Contini works regularly with companies across a wide range of industries, including the pharmaceutical/medical device, oil and gas, and nuclear sectors.

Author

Roberto Cursano focuses on healthcare law and compliance, and assists in tender procedures, the negotiation of public contracts and litigation before administrative courts. He is a former administrative officer in the Italian Ministry of Health and helps clients work closely with the Italian Public Administration. He is admitted to the bar before the Italian Supreme Court and the Council of State. Roberto advises primarily on pharmaceutical and healthcare matters. These include product licensing and marketing, clinical trials, pricing and reimbursement, promotions, interactions with healthcare professionals, distribution of products, and public procurement issues. Additionally, he assists in anti-bribery matters and related investigations, and helps set up internal compliance models preventing corruption-related crimes, money laundering and corporate crimes (so-called Law 231 Models). He also advises on administrative/public law, including export control law and public procurement law.

Author

Anahita heads Baker McKenzie's International Trade Practice in Germany and is a member of our EMEA Steering Committee for Compliance & Investigations. Anahita is Global Lead Sustainability Partner for our Industrials, Manufacturing and Transportation Industry Group and a member of the ABA International Human Rights Steering Committee. Anahita focuses her practice on global investigations and white-collar crime proceedings before German authorities and courts. She has significant experience advising on internal compliance programs, accompanying internal and external investigations and self-disclosures, inter alia in cases of breaches of sanctions, export control, human rights, data protection and foreign investment review, closely collaborating with the competent authorities.

Author

Julia Webster is a disputes and international trade lawyer. She advises companies on trade remedies, free trade agreements, blocking measures, customs compliance, anti-corruption laws, economic sanctions, AML compliance, supply chain ethics, and cross-border M&A.