Ukraine sets new 50-year-long sanctions on Russia
Ukraine issued new sanctions aimed at Russian financial institutions on Thursday. The parliament announced that they would last for the following 50 years. The institutions listed include the Russian central bank, investment funds, all commercial banks, as well as insurers, and other enterprises. The government is trying to maintain financial pressure on Moscow. Russia invaded Ukraine on February 24, 2022, bringing much suffering and destruction to the country. The latter attempts to retaliate with all the weapons in its arsenal, a financial embargo being one of them.
Andriy Pyshniy, governor of the National Bank of Ukraine, wrote that the government aims to completely block financial institutions of the Russian Federation, restricting their access to all of the markets and assets in Ukraine. He also added that Kyiv would continue trying to weaken Russia with all available means. The financial sector just offers a convenient way to do that.
The majority of deputies (325) wholeheartedly supported this plan, even though it would last for half a century. These sectoral sanctions will affect tens of thousands of financial institutions and hundreds of banks registered in Russia – noted Economy Minister Yulia Svyrydenko.
She also added that Kyiv would also issue a ban on transactions that include any assets owned by Russia’s financial institutions. Moreover, the authorities will ban all investments and transactions in Russian financial institutions, along with all business relations.
Ukraine already has in place other sanctions. What are these?
The country had already imposed other sanctions to hit Russia to a vulnerable place and force it to stop the war. However, the first bans involved not financial operations but Russian officials and businesspeople. Kyiv barred Russians and people linked to the Federation from owning land in Ukraine. They can’t participate in state privatization, as well. In addition, the government prohibited purchasing Russian goods and some services. It also stopped transferring technologies to individuals linked to Russia.
