UK Imposes More Sanction On Russia Over Its Invasion Of Ukraine

UK Imposes More Sanction On Russia Over Its Invasion Of Ukraine

Following Russia’s invasion of Ukraine, the UK government has declared new sanctions against Russia.

On Monday, February 28, the government declared that any British entities dealing with the Russian central bank, finance ministry, or wealth fund would be barred.

Read More: Military reinforcements will be sent to Ukraine from the Czech Republic, the Netherlands, Poland, and Portugal

It further stated that Russian corporations will be prohibited from offering transferrable securities and money market instruments in the United Kingdom.

The statement read;

“The UK Government will immediately take all necessary steps to bring into effect restrictions to prohibit any UK natural or legal persons from undertaking financial transactions involving the CBR, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation”

Britain said it would have “a power to prevent designated banks from accessing Sterling and clearing payments through the UK.”

“These measures demonstrate our determination to apply severe economic sanctions in response to Russia’s invasion of Ukraine,” finance minister Rishi Sunak said.

Additional limits on Russian financial institutions are included in the new sanctions, as well as a slew of measures aimed at tightening trade restrictions against Moscow. More designations will be issued this week, according to Britain.

The fresh sanctions come as Moscow’s stock exchange prepares to launch amid a currency crisis and investor exodus.

The Russian government is concerned that when banks open and the stock market begins trading, there will be a run. In a desperate attempt to halt spiraling inflation and the currency’s depreciation, Russia’s central bank has more than quadrupled interest rates to 20%.

At the same time, the Kremlin temporarily prohibited non-residents from selling government bonds to relieve the rouble’s pressure from terrified international investors looking to cash in.

The Rouble, Russia’s currency, fell by over 30% versus the US dollar early Monday, but then stabilized after the central bank’s intervention.

Western countries who have frozen Russia’s hard currency reserves and barred banks from using the Swift global payment system will be relieved that the actions are having the expected economic destabilizing effect.