U.S. Treasury seeking to enforce its Russian sanctions but major global auditing firms Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers continue to work in Russia with Russian companies including Russian state-owned companies

According to a Wall Street Journal article, global auditing companies Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers are still working in Russia for Russian companies including state-owned companies there. While it is unclear as to why these companies may remain working in Russia while the Treasury Department sanctions are in place, the Journal article suggests it has to do with fulfilling contractual obligations such as audit and tax work in progress. In theory, if every company with a contract used that argument to explain why they continue to work in Russia, few would leave. Auditing has particular requirements regarding compliance but doesn’t a federal US Treasury sanction would seem to supersede contract requirements.

JEFFREY NEWMAN, A FORMER PROSECUTOR IS A WHISTLEBLOWER IN THE FIRM OF NEWMAN & SHAPIRO. JNEWMAN@NEWMANSHAPIRO.COM . 617-823-3217