Also featured is an article that was first published in the May 2021 edition of Butterworths Journal of International Banking and Financial Law, which examines the complete security package that is needed to ensure that a commodity financier is as well protected as they possibly can be. The backdrop to this article is the fact that COVID-19 lockdowns have disrupted commodity transactions and consequential enhanced oversight of borrowers’ businesses has uncovered fraudulent activities that have brought to the forefront weaknesses in arrangements that might otherwise have gone unnoticed or have been considered sufficiently low risk not to be a concern. In response prudent transaction parties may find themselves needing to revisit previously settled approaches to commodity finance security packages and perhaps adjusting where their cost benefit analysis falls.
The concluding article in this edition focuses on the intricate and very topical issue of diverging obligations between Western sanctions and Chinese national security laws that do not show any signs of relenting. The article sets the scene with the legal background before considering some of the strategies for navigating US and Chinese sanctions and related counter-measures.
Our regular Sanctions and Export Controls update page also features some interesting reads on, including amongst others, the Recast EU Dual-Use Regulation that is due to come in to force on 9 September 2021; the US Executive Order amending the ban on US persons purchasing securities of certain Chinese companies and the US revocation of Executive Orders banning certain Chinese software applications; and the EU Advocate-General’s opinion signalling a strict interpretation of the EU Blocking Regulation. There is also a link to the Baker McKenzie blog of the same title.
Finally, we outline our exciting partnership with the LMA and our sponsorship of their Developing Markets Virtual Conference earlier this year.
As always we hope that you enjoy this edition of Baker McKenzie’s Trade Finance Quarterly Insight and invite you to reach out to any of the contributors or indeed anyone else in the team (please see enclosed Key Contacts) should you wish to discuss any of the issues covered in this edition or have any other trade finance related queries.
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