South Korea imposes new sanctions on Russia as it continues military offensive in Ukraine

Russia is facing severe sanctions since it started its military operations in Ukraine on February 24. South Korea has already imposed penalties on Russia for its unjustified attack on Ukraine, and now it has imposed new sanctions, cutting its connection with the Russian central bank and other financial institutions while allowing energy-related transactions to continue under exemptions negotiated with the United States, as per a report by Bloomberg.

South Korean Finance Ministry announced on Monday that transactions with Russia's central bank, the Russian Federation's National Wealth Fund, the Russian Direct Invest Fund and Rossiya bank will be suspended. However, a general licence provided by the United States will allow energy-related trading with six banks, including Sberbank and the Central Bank, until June 24.

Finance Ministry to provide more details later on Monday

An official from South Korea's finance ministry said it will provide more details later on Monday, including the extent of additional measures that will be in accordance with US financial restrictions. Seoul had previously indicated that it will prohibit the export of strategic products, ban some Russian institutions from using the SWIFT international payments system, and increase help to Ukraine. Electronics, semiconductors, computers, information and communications, sensors and lasers, navigation and avionics, and marine and aeronautical equipment are among the things that will be restricted by South Korea.

The new sanctions are broadly in line with those imposed by other countries since late February, as the international community is united against Russia in the aftermath of its invasion of Ukraine. The prospect of the United States tightening sanctions even more by prohibiting Russian oil imports sparked a rise in crude prices on Monday.

South Korean companies face losses due to economic sanctions on Russia

Meanwhile, South Korean companies are facing losses due to economic sanctions imposed on Russia, such as payment delays. A Korean cosmetics exporting company claims that it has yet to receive payment from Russian buyers for its exports, according to ANI. It further stated that due to the increase in the Russian ruble's exchange rate, certain Russian partners are refusing to accept supplied items or pay fees.

(Image: AP/@cbr_en/Twitter)