Saxo Bank Escalates Sanctions On Russia And Belarus
Saxo Bank, a Danish financial firm issued a notice to its Russian and Belarusian clients about the withdrawal of services. As stated by RBC in a report, the termination of services will take effect on June 6, 2022.
In the bargain, the Bank asked its clients in the two mentioned states to close their trading positions and withdraw money before June 6, 2022. Failure to close the trade before or on the due date will force the Danish brokerage to do it on its own.
Russia has been experiencing a series of sanctions recently due to atrocities committed by its troops. This has remained the main reason driving Saxo Bank to terminate its services there.
In a report, RBC said “In a letter to customers, Saxo Bank says it is forced to exercise its right to stop working with them because of the sanctions imposed on Russia. Accounts will be closed from June 6, 2022, until that time users will be able to withdraw funds, close positions, or transfer securities to any broker.”
“But, such transfers are subject to additional checks or counterparty restrictions, which will increase processing time or prevent the fulfillment of such requests. In some cases, it may be easier to close positions and simply transfer cash instead of securities,” Saxo Bank explained in the letter.
Continuing War Of Aggression
In light of the Russia and Belarus war of aggression against Ukraine, and the reported atrocities committed by Russian armed forces in Ukraine, several financial firms have employed sanctions on the countries.
Recently, the U.S Department of the Treasury’s Office of Foreign Assets Control (OFAC) took major steps to degrade the economy of the Russian Federation in response to continued Russia’s brutal war.
The treasury is imposing full blocking sanctions on Sberbank, Russia’s largest state-owned bank, and Alfa-Bank, Russia’s largest private bank.
The US President also plans to issue a new Executive order to limit new investment in the Russian Federation. Moreover, the provision of certain services to any person located in the Russian Federation by U.S persons will also be limited.
