The US, EU, UK, Canada, Japan, Switzerland, Australia, New Zealand, and Taiwan have issued various sanctions, including banning certain Russian banks from SWIFT to hinder Russia’s economy in response to the invasion of Ukraine. Russia has since issued corrective measures in an attempt to strengthen its own economy that is in freefall. Russian stocks and currency are seeing record lows, and interest rates have doubled.
It is highly recommended that US companies check with compensation professionals regarding ESPP purchases, RSU vestings, and option exercises should any participants in their plans reside in Russia. Most plans will allow suspension of issuance of shares and ESPP participation. Cash settling is a consideration only if payment can be made in Rubles into the Russian resident’s bank or brokerage account in Russia. Visit Treasury’s FAQ for updated information.
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