EU Tightens Russia Sanctions, Vietnamese Banks Restrict Russian Payments

Vietnamese banks have tightened payment requirements for Russian companies due to fears of secondary sanctions from the US and Europe, only allowing transactions when goods are delivered to Vietnam or when a Vietnamese citizen is involved as a company founder. These banks now demand comprehensive documentation, including contracts, invoices, and transport or customs papers, to confirm the transaction's connection to Vietnam, and look for local anchors such as offices or long-term partnerships if no physical shipment occurs. This shift, beginning in mid-2025 and influenced by US sanctions decrees and OFAC clarifications from 2023 and 2024, has complicated transit schemes and prompted some Russian businesses to seek alternatives in other Asian countries. Meanwhile, the European Union’s August 2025 sanctions package against Russia introduces stringent anti-circumvention measures targeting indirect trade routes, mandating exporters to include “no re-export to Russia” clauses and expanding prohibited goods lists. These EU measures signal a strategic enforcement shift to close loopholes in supply chains, impacting manufacturers, logistics providers, and financial institutions globally. Together, these developments reflect growing international pressure to curb Russia’s access to critical goods and financial networks amid ongoing geopolitical tensions.