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Russo-Ukrainian war: Singapore imposes financial measures at designated Russian banks, activities

07 Mar 2022

The Singapore Government, in response to Russia’s invasion of Ukraine, on Saturday (5 March) said it will impose financial measures targeted at designated Russian banks, entities and activities in Russia, and fund-raising activities benefiting the Russian government.

Digital payment token service providers will be specifically prohibited from facilitating transactions that could aid the circumvention of the financial measures.

These measures apply to all financial institutions in Singapore, including banks, finance companies, insurers, capital markets intermediaries, securities exchanges, and payment service providers.

Financial institutions in Singapore will be prohibited from the following:

(a) Entering into transactions or establishing business relationships with the following Russian banks:

  • VTB Bank Public Joint Stock Company;
  • The Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank;
  • Promsvyazbank Public Joint Stock Company; and
  • Bank Rossiya.

Where there are existing business relationships, financial institutions must freeze any assets and funds of these four banks.

(b) Providing financing or financial services in relation to the export from Singapore or any other jurisdiction of goods subject to Singapore’s export controls on Russia. These goods comprise all items in the Military Goods List and specified categories in the Dual-Use Goods List of the Strategic Goods (Control) Order 2021.

(c) Providing financial services in relation to designated Russian non-bank entities which are involved in activities in (b). Where there are existing business relationships, financial institutions must freeze any assets and funds of these designated entities.Details on the designation of non-bank entities will be provided subsequently.

(d) Entering into transactions or arrangements, or providing financial services that facilitate fund raising by:

  • the Russian government;
  • the Central Bank of the Russian Federation;
  • any entity owned or controlled by them or acting on their direction or behalf.

The prohibitions apply to buying and selling new securities, providing financial services that facilitate new fund raising by, and making or participate in the making of any new loan to the above entities.

The Singapore Government and Monetary Authority of Singapore will also cease investing in newly issued securities of the above entities.

(e) Entering into transactions or providing financial services in relation to the following sectors, in the breakaway regions of Donetsk and Luhansk:

  • transport;
  • telecommunications;
  • energy; and
  • prospecting, exploration and production of oil, gas and mineral resources.

(f) Entering into or facilitating any transactions involving cryptocurrencies, to circumvent any of the above prohibitions in (a) to (e). The prohibited cryptocurrency transactions cover all transactions that involve cryptocurrencies and extend to the payment and settlement of transactions that relate to digital assets (such as non-fungible tokens).


Photo credit: Ehimetalor Akhere Unuabona on Unsplash
Published: 7 March, 2022

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