Government: "Suspension of Transactions with Russian Central Bank to Take Effect from the 8th"… One More Bank Added to Financial Sanctions

[Asia Economy Sejong=Reporter Son Seon-hee] The government announced on the 7th that it will apply the policy to suspend financial transactions with the Central Bank of Russia and the sovereign wealth fund starting from the 8th without any grace period. Additionally, one more Russian bank has been added to the list of financial transaction suspension targets.

On the afternoon of the same day, the Ministry of Economy and Finance stated regarding the financial sanctions against Russia, "The suspension of financial transactions with the Central Bank of Russia and the sovereign wealth fund will be applied from March 8." However, it added, "Transactions in areas and banks where the United States has issued a General License allowing exceptions, such as agricultural products, COVID-19 medical support, and energy-related transactions, will be permitted under the same standards."

Furthermore, in line with the international community's financial sanctions against Russia, the ministry announced that it will additionally suspend financial transactions with 'Rossiya' bank, which was excluded from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) by the European Union (EU) on the 2nd. This adds to the seven banks (Sberbank, VEB, PSB, VTB, Otkritie, Sovcom, Novikom) announced on the 1st, making a total of eight banks with which transactions will be suspended. This will also be applied immediately from the 8th without any grace period. Rossiya bank was previously designated as a sanction target by the U.S. Department of the Treasury during the Crimea crisis in March 2014.

While announcing additional financial sanctions against Russia on this day, the government decided to suspend transactions with a total of 11 institutions and subsidiaries so far. Investments in Russian government bonds have already been suspended since the 2nd, and the SWIFT exclusion will be applied to the seven banks starting from 8 a.m. on the 13th (Korean time).

The Ministry of Economy and Finance stated, "Financial authorities will provide detailed guidance on grace periods and types of transactions permitted under the U.S. government's General License to minimize inconvenience to financial institutions, citizens, and companies during the implementation of the sanctions."

This content was produced with the assistance of AI translation services.