Russia’s Response to SWIFT Sanctions Affects US Offered Share Plans

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. 

SPS/GZ is a full-service tax reporting and stock plan administration firm that provides personalized service and exceptional support, utilizing state-of-the-art technology to business clients of all sizes. We create and e-file Forms 1042-S, 1098-T, various 1099s. including 1099-NEC, and Affordable Care Act tax forms, as well as  Forms 3921 and 3922. For more information, reach out to us at or call at (888)375-3049. Our complete and affordable solution allows administrators to simply upload their tax form data file to our secure portal in a few simple steps and we handle everything else to keep your organization compliant. Contact us today! 

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