Introduces a new set of sanctions against the Russian banking and financial sector

On 22 February 2023, the Parliament of Ukraine passed a resolution to impose sanctions on the Russian banking and financial sector. These sanctions will remain in effect for 50 years and will apply to all banks, non-bank credit institutions, payment system operators, professional stock market participants, insurance companies, investment funds, and other financial service providers registered or located in the Russian Federation.

The sanctions entail the suspension of transactions involving assets owned by these entities and prohibit establishing business relations, executing transactions, and maintaining business relations with them. Additionally, the sanctions prohibit purchasing securities and other financial instruments issued by Russian financial institutions, and the suspension of the performance of financial and economic obligations in their favour. The cancellation of registration and prohibition on further registrations of certain entities are also included. It is worth noting that individuals and legal entities are prohibited from executing transactions intended to circumvent these restrictions.

• Type:

  • Entry and establishment (Other)
  • Treatment and operation (Other sector specific regulation)

• Industry:

  • Services (Financial and insurance activities)

• Sources:

  • zakon.rada.gov.ua, On the application of sectoral special economic and other restrictive measures (sanctions) to financial institutions of the Russian Federation, https://zakon.rada.gov.ua/laws/show/n0012525-23#n2, 23 Feb 2023
  • BakerMcKenzie, Ukraine imposes sectoral sanctions against all banks and financial services providers operating in Russia, https://sanctionsnews.bakermckenzie.com/ukraine-imposes-sectoral-sanctions-against-all-banks-and-financial-services-providers-operating-in-russia/#:~:text=On%2022%20February%202023%2C%20the%20National%20Security%20and,set%20of%20anti-Russia%20sectoral%20sanctions%20imposed%20by%20Ukraine., 23 Feb 2023