It’s happened before in history – Russia has invaded its neighbours

Ukraine crisis sparks credit concerns

As the crisis in Ukraine increases as Russian tanks cross the border into the Donetsk and Luhansk regions in eastern Ukraine stock markets around the world have tumbled. Even worse the price of oil has risen sharply putting inflationary pressures on the economy. For Germany the pausing of the Nord Stream 2 pipeline will have a major effect on its finances while in Britain the Prime Minister has announced sanctions against these Russian banks: Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank. Plus Boris Johnson has targeted three Russian oligarchs: Gennady Timchenko, Boris Rotenberg, and Igor Rotenberg.

One of the Russian banks hit by the sanctions

Anyone doing business with them will be in breach of the sanctions as their UK assets are frozen – and the PM has pledged to do more in the coming days – especially if the Russian army continues its march into the Ukraine. It means that Russian based firms in the UK and abroad could now be a credit risk as their income streams dry up.

Ian Carrotte of ICSM said a number of Russian based firms had gone to the wall in recent years due to mismanagement and ‘activities not associated with running a company properly.’ He said: “In 2017 VIM Airlines ceased operating after the authorities began to investigate its finances – or lack of them. Linked to the airline was the main lender Otkritie which had to be bailed out by the state Bank of Moscow, with investigators believe fraud had helped to create a £10 billion loss. At the time the Financial Times reported that Otkritie falsified its accounts which is an understatement as money siphoned off from the lender ended up in real estate in London.”

Russian tanks mass on the Ukraine border. Pic: The Guardian

The crisis will see energy prices hiked again which could well see more suppliers go bust. But if we think the pandemic has been bad for business in the UK spare a thought for the Russian business sector. It is estimated by the Human Rights Commissioner Tatyana Moskalkova that 4.5million businesses went to the wall in Russia since the pandemic began.

ICSM understands that the equivalent 45% of Russia’s GDP is held by Russians in London, (according to the National Bureau of Economic Research) meaning with sanctions now being applied anyone trading with Russian outfits could get their fingers burnt. 

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel – while at the moment there’s a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach – ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website or email Ian at on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website or send an email to

For details for the work of the journalist Harry Mottram visit