How do I pay our Russian devs?

Question

Operating a company with a decent amount of remote contractors in Russia. We are worried about being able to pay them. What are the best options? We are currently thinking about having them open foreign bank accounts if they don't have one already.Where's the best place for them to get a foreign bank account?What's the best method for them getting the money back into Russia so they can use it?

duxup · Accepted Answer

This is something you really want to ask a lawyer who knows your details.You don&rsquo;t want to get this one wrong. Consequences in your country (and for your business in other countries) could be severe.

throwaway290 · Answer

As of now, it appears to be illegal for US businesses to transact with any resident (does not matter if they are peaceful or pro-Ukraine) of any of the annexed or separatist-claimed territories in Ukraine, so you might want to check that ASAP.If Russia is disconnected from Swift but is still legal to do business with, you could find a way that does not involve Swift. If Russia as a whole falls under the same restriction (consider the implications), then paying your devs will become illegal and any advice on that would be advice on how to violate the law. Consult lawyer.

0xBDB · Answer

Russia is still on SWIFT (as of today) and still legal to do business with for the most part. Check with your lawyer, but unless your contractors are sanctioned entities or contracting through one, I would think you pay them however you've been paying them. Whether it might be prudent and ethical to start moving your business elsewhere is another question.EDIT: If their Russian banks being sanctioned is the problem, I suppose you might have to use crypto. This is likely to draw attention and I would really be consulting your lawyer at that point. I realize that just firing everybody overnight may not be a practical solution if there is any other resort.

mytailorisrich · Answer

At the moment there's no technical or legal problem, as far as I know.
Later it will depend on the nature of any new sanctions. If they create a practical problem (e.g. Russia dropped from SWIFT) then crypto may provide a workaround. If they create a legal ban on dealing with Russia then I'm afraid you will have to sever all links with your Russian contractors.
But as others have pointed out you want to seek legal advice because breaching international sanctions, especially against Russia at the moment, is a serious criminal offense.
Maybe also a good idea to talk to your bank about what it their position on customers making transfers to Russia.

bedast · Answer

You don't. This is part of war. You move them out of Russia or your fire them.

Flankk · Answer

Criminal penalties for violating sanctions range up to 10 years in prison, $1 million in corporate fines, and $250,000 in individual fines. Any other questions?

pier25 · Answer

If they can open a Payoneer account this will give them a US and EU account. Not sure how they will get the money to Russia though.

axiosgunnar · Answer

You don't.

ussrlongbow · Answer

Swift, I am helping a US company to settle RU contractors relationships, DM if help needed.

0xdeadb00f · Answer

Bitcoin, Monero?

rvz · Answer

> What's the best method for them getting the money back into Russia so they can use it?Cryptocurrencies (not Bitcoin) are your only option.

ushakov · Answer

TransferWise?