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Ukraine's parliament sanctions all financial institutions of Russia

Thursday, 23 February 2023, 14:47

The Verkhovna Rada [Ukraine's parliament – ed.] has approved the introduction of economic sanctions against all financial institutions of the Russian Federation.

Source: Yaroslav Zheleznyak, First Deputy Head of the Verkhovna Rada Committee on Tax and Customs Policy, on Telegram

According to Zhelesnyak, 325 members of the parliament supported the resolution approving President Volodymyr Zelenskyy's decree.

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This decree is about special sectoral economic sanctions for a period of 50 years to all banks registered and located in the Russian Federation, including:

  • the Central Bank of Russia;
  • non-bank credit organisations;
  • operators of payment systems;
  • professional stock market participants;
  • insurance companies;
  • investment funds;
  • other financial institutions that are registered and provide services in Russia.

They include 10 points, in particular, the suspension of transactions with assets belonging to financial institutions of the Russian Federation; prohibition of establishing business relations, including correspondence; prohibition of concluding agreements and making investments in favour of financial institutions of the Russian Federation.

The purchase of securities and other financial instruments issued by financial institutions of the Russian Federation is also prohibited, except alienation (including free of charge) of securities in favour of the state of Ukraine.

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The sanctions also provide for the suspension of economic and financial obligations in favour of the financial institutions of the Russian Federation, the suspension of the service of electronic means of payment (transfers, making calculations and issuing cash) issued by the financial institutions of the Russian Federation.

The decree also provides for cancellation of registration and prohibition of new registrations by the National Bank of the international payment system, the operator of which is a financial institution of the Russian Federation, and its participants. And also a participant of the financial institution of the Russian Federation in the international payment system, the operator of which is a resident of Ukraine.

It is also forbidden for individuals and legal entities to take actions that lead to the violation and avoidance of the imposed restrictions.

Sanctions are imposed for a period of 50 years.

Background:

On Wednesday, 22 February, President Volodymyr Zelenskyy submitted to the Verkhovna Rada a resolution approving the National Security and Defence Council of Ukraine's decision to apply sectoral economic sanctions to Russian financial institutions.

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