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The UK Government and partners have announced a series of economic measures and are working to go further and exclude Russian banks from the SWIFT financial system, following the invasion of Ukraine by Russia.

The United Kingdom announced a series of economic measures targeted at Russia. One of the first measures announced was the UK’s commitment to guarantee selected Russian banks are removed from the SWIFT messaging system, which is used by more than 11,000 banks for cross-border payments and is crucial for global trade. This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.

In response to Russia’s counter measures, the UK also committed to impose restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of the sanctions and to undercut its ability to engage in foreign exchange transactions to support the Russian rouble.

The government also announced it 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 Central Bank of the Russian Federation, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation. The UK Government intends to make further related designations this week, working alongside its international partners.

The UK Government intends to make further related designations this week, working alongside its international partners.

Companies should immediately review which companies and individuals they are doing business with and cease any activities with any ‘involved person’ as designated in the latest amendment.

For any questions about the impact of these sanctions on UK businesses operating in any sector, or business operations in Ukraine or Russia, members can contact the Export Support Service who are providing a front line Russia sanctions support service to all businesses.

The Chancellor yesterday said:

“We are announcing this action in rapid coordination with our US and European allies to move in lock step once more with our international partners, to demonstrate our steadfast resolve in imposing the highest costs on Russia and to cut her off from the international financial system so long as this conflict persists.”

The Governor of the Bank of England yesterday said:

“The Bank of England continues to take any and all actions needed to support the Government’s response to the Russian invasion of Ukraine. We welcome the steps taken today by the UK Government, in coordination with EU and US authorities, as an important and powerful demonstration of the UK’s commitment to the international rule of law.”

New sanctions measures will cover:

• Restrictions to prohibit UK persons from undertaking financial transactions involving the Central Bank of the Russian Federation, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation.
• Restrictions against Russian financial institutions.
• Measures to prevent Russian companies from issuing transferable securities and money market instruments in the UK. This will form a sweeping addition to existing financial restrictions. This is in addition to the prohibition of the Russian state raising sovereign debt in the UK already announced.
• A power to prevent designated banks from accessing Sterling and clearing payments through the UK. This will match the power the US already has. Banks subject to this measure will be unable to process any payments through the UK or have access to UK financial markets.
• A set of measures to strengthen significantly trade restrictions against Russia. This will include a prohibition against the export of a range of high-end and critical technical equipment and components in sectors including electronics, telecommunications, and aerospace.
• The previously announced extension of financial and trade measures applying to Crimea to the DNR and LNR regions.
• Any General Licences related to sanctions will be published on OFSI’s pages here.