This page will be updated on a regular basis as relevant information becomes available globally and will serve as the central depository for information from ISDA relating to the impact of Russian sanctions on derivatives markets. If you have any questions or would like additional information in relation to these matters, please email ISDALegal@isda.org.
The information on this page is provided for information purposes only. ISDA may but shall not be obliged to change or update it from time to time. No representation is made as to its completeness or accuracy.
ISDA conducts its work related to sanctions through a variety of different working groups, including the ISDA Sanctions Group and various product-specific working groups. To view the list of ISDA working groups and join one or more of them:
- Log into your account or create an account on the ISDA website.
- Click on the Committees tab and then view My ISDA Committee Dashboard. You can request to join and leave working groups and distribution lists.
This page is separated into the following sections:
- ISDA FAQs
- Market Closures & Disruptions
- CDS Market Response
- FX Market Response
- Equity Market Response
- Commodity Market Response
- Rates Market Response
- Other Issues
- Additional Information
- External Resources
- European Union
- United Kingdom
- United States
- US OFAC Russian Harmful Foreign Activities Sanctions Regulations 31 CFR part 587 General License No. 10C Authorizing Certain Transactions Related to Derivative Contracts
- UK OFSI General License – INT/2022/1272278
- UK OFSI General License – INT/2022/1298776
White Paper: Economic Sanctions Programs & Derivatives (December 2019)
This paper examines unique aspects of derivatives transactions that can present issues in interpreting how sanctions programs should apply in the context of derivatives and analyses these issues.
ISDA Guidance Note for Addressing Sanctions Issues in ISDA Documentation (December 2020)
This guidance note considers when parties may wish to include specific provisions addressing sanctions issues in ISDA documentation, explains the purpose of these provisions and provides example provisions that can be adapted by parties for use in their negotiated agreements.
Selected Russian Presidential Decrees – Please note that these are informal translations that do not constitute legal advice. As such, they should not be relied upon.
- Presidential Decree No. 79
- Presidential Decree No. 81
- Presidential Decree No. 95
- Presidential Decree No. 126
Selected Central Bank of Russia Press Releases (English language press releases retrieved from the Bank of Russia Press Service website)
- “Bank of Russia eases temporary procedure for foreign cash transactions” (April 8, 2022)
- “Bank of Russia eases rules for buying and selling foreign currency via brokers and banks” (April 8, 2022)
- “Foreign exchange control under foreign trade contracts eased for more industries” (April 15, 2022)
ISDA Sanctions FAQs (last updated March 29, 2022)
ISDA Market Closure Information
ISDA regularly updates this page as information regarding market closures and disruptions becomes available. It currently includes announcements regarding the Ukranian Exchange, PFTS Stock Exchange, Moscow Exchange and London Metal Exchange – Nickel. For ISDA’s guidance related to these exchanges, please see the relevant product areas below.
A. CDS Settlement:
- Analysis has identified two sanctioned reference entities with significant CDS volume, i.e., Russian Federation and Gazprom. The current sanctions relevant for CDS purposes provide that firms may not trade new debt issued by these entities after a specified cut-off date (generally in March 2022, although the precise date may vary by sanctions jurisdiction and reference entity).
- For Russian Federation and Gazprom, assuming the current sanctions regimes remain in place, if a default were to occur, it is anticipated that a CDS auction could operate as normal, because the legacy debt could be used to settle the contract. This also assumes that either no new debt within scope of the CDS contract is issued, or that such debt is contractually excluded (as contemplated below).
- Any decisions regarding whether a CDS credit event has occurred and the details of any CDS auction will be made by the Credit Derivatives Determinations Committee (“CDDC”), which is separate from ISDA. The CDDC can be found here: https://www.cdsdeterminationscommittees.org/.
B. New debt issued by sanctioned Russian entities: ISDA has developed a standard amendment to CDS contracts on sanctioned Russian reference entities to exclude from the CDS contract future issued debt while sanctions are in place. This provides certainty that the auction process could be used, assuming the current sanctions regimes remain in place. To implement this change, ISDA has published additional provisions and launched a protocol to put the changes in place. More information and links to the relevant documents will be forthcoming as this work progresses.
- Additional Provisions for Certain Russian Entities: Excluded Obligations and Excluded Deliverable Obligations
- ISDA 2022 Russia Additional Provisions Protocol This protocol was closed on April 27th 2022. The physical settlement matrix, containing the new terms and applying the terms to new trades, and the application of the new terms to legacy trades through adherence to the Protocol both were implemented on May 2nd, 2022. You can find additional information about the protocol in the FAQ. The physical settlement matrix and related confirmations are available on the ISDA bookstore, available here.
A. ISDA-EMTA 2022 Amendment Agreement to Incorporate Additional Provisions for Use with a Deliverable Currency Disruption Event for RUB Foreign Exchange Transactions ISDA and EMTA jointly published an amendment agreement to incorporate additional provisions for use with a deliverable currency disruption event related to ruble foreign exchange transactions. Please review the introduction to this Amendment Agreement for additional background and points to consider.
- The Amendment Agreement is available on ISDA Create for no charge for any institution. Users with an existing ISDA Create production account can access the Amendment Agreement in their account library. If you do not have an account, please email email@example.com to arrange access.
B. MOEX Rate: The MOEX Rate is the settlement rate for NDFs, ruble swaps and FX transactions that include disruption event language. EMTA is hosting discussions regarding whether an adjustment or replacement rate should be used in new trades with a potential for EMTA and/or ISDA to consider a potential multilateral amendment for legacy trades. Please note that a viable solution for this issue may not exist and/or be acceptable to the market. ISDA is currently in communication with EMTA regarding these discussions and will provide more information if and as work progresses.
ISDA Guidance: Russian Equity Market Closures 2022 ISDA published guidance for parties to over-the-counter equity derivative transactions affected by the market closures in Russia, including the closure of Moscow Exchange (MOEX) for more than eight scheduled trading days, which may result in a calculation agent determination of settlement amounts. ISDA may update this guidance from time to time as necessary and appropriate.
London Metal Exchange (LME) suspension of nickel futures contracts: ISDA has published guidance for parties to over-the-counter derivative transactions affected by the suspension of trading of nickel contracts by the LME, which it expects to update from time to time as events develop. ISDA has also published a form of bilateral amendment agreement template that will allow market participants to override their current contractual market disruption fallbacks in respect of the recent suspension of nickel trading at the LME with alternative fallback provisions including the option to introduce a fallback based upon the LME pricing methodology for days on which a market disruption occurred. More information and links to the relevant documents will be forthcoming as this work progresses.
- ISDA Guidance: LME Suspension of Nickel Trading This guidance addresses events from March 8th to March 21st, 2022. ISDA may also publish further updated guidance from time to time.
- Form of Bilateral Amendment Agreement Template
- ISDA is monitoring the ruble interest rate derivative market (which is relatively small in size) but is not aware of any significant issues at this time.
- Moscow Prime Offered Rate (MosPrime Rate): The 2006 ISDA Definitions reference Refinitiv as the price source and key defining feature for the MosPrime Rate floating rate option. However, ISDA understands that Refinitiv is no longer a distributor of MosPrime (and therefore MosPrime is no longer available on the specified page). ISDA has issued market guidance regarding www.mosprime.com as a successor source for the MosPrime Rate under the 2006 ISDA Definitions. This issue does not apply to contracts that reference the floating rate option for the MosPrime Rate in the 2021 ISDA Interest Rate Derivatives Definitions because ISDA has removed price sources from all floating rate options in these definitions in order to improve contractual robustness of contracts incorporating those definitions. More information will be forthcoming as this work progresses.
- See MOEX Rate above.
The licenses listed above generally permit the wind down of certain derivatives transactions involving sanctioned parties, as contemplated by ISDA’s Economic Sanctions Programs & Derivatives white paper from December 2019. ISDA continues to monitor this topic and may convene discussions or provide additional information if and when appropriate.
ISDA is monitoring the Russian government announcements regarding capital control measures and may convene discussions or provide additional information if and when appropriate.
- ISDA is monitoring CCP responses to sanctioned entities, market closures/disruptions and related issues and may convene discussions or provide additional information if and when appropriate.
- External announcements:
ISDA is monitoring market volatility that could affect capital and margin, including SIMM calculation. However, at this time we do not expect any significant issues.
Certain Russian banks have lost access to the SWIFT international payment system. ISDA is monitoring related effects on the derivatives market and may convene discussions or provide additional information if and when appropriate.
ISDA Virtual Conference (April 13th): Sanctions and the Derivatives Market: Key Issues, Legal Impacts and Market Insights *Register Now*
To be updated from time to time.
Reuters: Tracking Sanctions against Russia
To be updated from time to time.