Russia-Ukraine war: Singapore imposes penalties on Russian Central Bank & other banks

In retaliation to the Russian invasion of Ukraine, Singapore has slapped penalties on the Russian Central Bank as well as a number of other Russian banks, according to the Singaporean Foreign Ministry. Apart from Russian banks, the Singapore government would implement financial sanctions against businesses and activities in Russia, as well as fund-raising efforts supporting the Russian government.

Further, distributors of digital payment tokens would be forbidden from enabling transactions that might help in the circumvention of financial controls.

The Singapore Ministry of Foreign Affairs (MFA) has further stated that the sanctions will also include a prohibition on the export of certain goods to Russia, such as electronics, computers, and military hardware. According to The Straits Times, MFA has provided additional details on the penalties for the first time on Saturday since they were declared on Monday. 

These sanctions and restrictions aim to constrain Russia’s capacity to conduct war

As per a press statement from the MFA, “These sanctions and restrictions aim to constrain Russia’s capacity to conduct war against Ukraine and undermine its sovereignty.”

It went on to say that materials that can be directly utilised as weapons to damage or oppress Ukrainians, as well as goods that can lead to offensive cyber activities, will be subjected to export regulations.  

Furthermore, financial institutions in Singapore will be forbidden from entering into money transfers or arrangements or offering financial services that facilitate fundraising efforts by the Russian government, the Russian Central Bank, or any institution owned by them or dealing on their behalf.

As per a press statement, purchasing and selling new securities or participating in the establishment of any new loan to the aforementioned organisations are all prohibited.  

VTB, Vnesheconombank, Promsvyazbank, as well as Bank Rossiya were the four Russian banks targeted by the sanctions. 

In addition to this, all authorise application forms to Russia comprising "(a) all items on the List of Military Goods under the SGCO; and (b) all category codes under Category 3 - Electronics, Category 4 - Computers, Category 5 - Telecommunications, and "Information Security" on the List of Dual-Use Goods under the SGCO" will be denied in order to limit Russia's capability to undertake its war in Ukraine, the statement added. 

Sanctions by other nations on Russia

Meanwhile, Canada, Australia, and Japan have all imposed sanctions on Russia. In addition, Canadians would be forbidden to purchase Russian government bonds or conduct business with Russian banks backed by the Russian government. Scott Morrison, Australia's Prime Minister, has also imposed penalties on eight Russian companies. The sanctions, according to Morrison, would include travel prohibitions. 

Further, absolute penalties on Russia's national debt, as well as complete blockades on two major Russian financial institutions, have been imposed by the United States, according to President Joe Biden. Furthermore, Sberbank, one of Russia's and Europe's largest banks, has been added to the United Kingdom's list of sanctioned firms. 

(Image: AP)