Further UK Sanctions target Central Bank of the Russian Federation (CBR).
On 28th February, 2022, the Bank of England, announced the UK Government’s intention to take further restrictive economic measures in response to the invasion of Ukraine by Russia by targeting the Central Bank of the Russian Federation (CBR).
Restrictions will prohibit any UK natural or legal persons from undertaking financial transactions involving the CBR, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation. The UK Government has said that it is currently looking to introduce further restrictions.
The UK Chancellor said:
"These measures demonstrate our determination to apply severe economic sanctions in response to Russia’s invasion of Ukraine. We are announcing this action in rapid coordination with our US and European allies to move in lock step once more with our international partners, to demonstrate our steadfast resolve in imposing the highest costs on Russia and to cut her off from the international financial system so long as this conflict persists."
The Governor of the Bank of England said:
"The Bank of England continues to take any and all actions needed to support the Government’s response to the Russian invasion of Ukraine. We welcome the steps taken today by the UK Government, in coordination with EU and US authorities, as an important and powerful demonstration of the UK’s commitment to the international rule of law."
These new sanctions measures will cover:
- Restrictions to prohibit UK persons from undertaking financial transactions involving the Central Bank of the Russian Federation, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation.
- Restrictions against Russian financial institutions.
- Measures to prevent Russian companies from issuing transferable securities and money market instruments in the UK. This will bolster existing financial restrictions, and is in addition to the prohibition of the Russian state raising sovereign debt in the UK already announced by the Government.
- A power to prevent designated banks from accessing Sterling and clearing payments through the UK. Banks subject to this measure will not be able to process any payments through the UK or have access to UK financial markets.
- A set of measures to strengthen significantly the UK's trade restrictions against Russia. This will include a prohibition against the export of a range of high-end and critical technical equipment and components in sectors including electronics, telecommunications, and aerospace.
- The previously announced extension of financial and trade measures applying to Crimea to the DNR and LNR regions.
Any General Licences related to sanctions will be published on OFSI’s pages here.
So far the UK government and its partners have introduced the following measures.
- Excluded Russian banks from the SWIFT financial system.
- Hit Russia’s banking and defence sector hard; asset freezes on VTB, Russia’s second largest bank, worth £154 billion, Rostec, Russia’s defence giant, responsible for $13bn of arms exports per year. Sanctions will also soon be implemented on 571 members of the Duma and Federation council who sanctioned the invasion of Ukraine.
- Banned Aeroflot and all other Russian commercial and private jets from UK airspace.
- Sanctioned Vladimir Putin directly, as well as his inner circle, including Sergey Lavrov.
- Sanctioned more than 100 companies and oligarchs at the heart of Vladimir Putin’s regime worth 100's of billions of pounds, through asset freezes and travel bans.
- UK sanctions also apply to Belarussian individuals and organisations that have supported the Russian invasion.
See the full UK sanctions list.
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