"Russia to Repay Debt with 'Value-Collapsed' Ruble... Government Calls It an 'Expected Measure'"

Ministry of Industry Holds Emergency 'Public-Private Meeting on Trade and Investment with Russia'
"Expected Measures Include External Debt Payment in Rubles and Ban on Foreign Currency Remittances"

Putin Chairs National Security Council Amid Ukraine Invasion
(Moscow Reuters=Yonhap News) Russian President Vladimir Putin is chairing a National Security Council meeting via video conference on the 3rd (local time) at the Novo-Ogaryovo residence on the outskirts of Moscow. Despite fierce international condemnation and strong Western sanctions, President Putin is showing determination to continue pushing forward the invasion of Ukraine. [Photo by the Kremlin] 2022.3.4
sungok@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Jun-hyung] As Russia designated South Korea as a non-friendly country, concerns among domestic companies are growing. The government has begun preparing emergency measures.

On the 8th, the Ministry of Trade, Industry and Energy announced that Yeo Han-gu, the head of the Trade Negotiation Headquarters, held a ‘Public-Private Countermeasure Meeting on Trade and Investment with Russia’ at the Korea Chamber of Commerce and Industry in Seoul. This countermeasure meeting was organized to assess the impact of the Russian government’s announcement of the non-friendly country list on domestic companies.

Previously, the Russian government designated 48 countries, including South Korea, which joined economic sanctions against Russia, as non-friendly countries. These include the United States, the United Kingdom, Japan, and the European Union (EU). Russia is expected to impose various sanctions such as diplomatic restrictions on countries included in the non-friendly country list. A representative measure is allowing Russian companies and individuals to repay foreign currency debts owed to foreign creditors included in the non-friendly country list in Russian currency, the ruble.

Jung Byung-rak, Commercial Counselor at the South Korean Embassy in Russia, said at the meeting, “The Russian government’s corresponding measures were already anticipated.” Counselor Jung cited expected measures following the designation as a non-friendly country, including ▲temporary ban on foreign currency remittances by Russian non-residents from non-friendly countries ▲payment of external debts in rubles ▲mandatory approval from the ‘Foreign Investment Implementation Management Committee’ for all transactions between non-friendly country companies and Russian companies. Counselor Jung added, “We are confirming additional explanations from the Russian government and central bank to identify and analyze the scope of application and the impact on our companies.”

Russia Support Belarus Subject to Export Controls on Strategic Items
(Seoul=Yonhap News) Reporter Hong Haein = On the 7th, the sanctions status board by country at the Strategic Materials Management Institute in Gangnam-gu, Seoul, displayed sanctions information against Russia.
The government held the 12th Emergency Response Task Force (TF) meeting on the Ukraine situation on the 6th and stated, "Based on the judgment that the Republic of Belarus is substantially supporting Russia's invasion of Ukraine, we have decided to implement export control measures against Belarus starting today."
The government announced that from the 7th, it will additionally enforce export restrictions on strategic items and designate two entities as entities of concern, and will implement non-strategic item controls in the same manner as for Russia. The entities designated as entities of concern are the Belarus Ministry of Defense and one other. 2022.3.7
hihong@yna.co.kr
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Industry representatives attending the meeting, including the Korea Automobile Manufacturers Association and the Korea Shipbuilding & Offshore Plant Association, unanimously agreed that government measures are necessary. Concerns were especially high regarding the repayment of foreign currency debts in rubles. If existing export payments, which should be received in dollars, are instead received in rubles whose value has plummeted, the burden from exchange losses will inevitably increase. An industry official said, “There are significant concerns about the measures that will apply following the Russian government’s designation of non-friendly countries,” adding, “In particular, due to expected exchange losses from ruble settlements, government-level support measures are needed.”

The government stated that it will closely consult with related ministries regarding exchange loss damages. Additionally, the government plans to continuously monitor corporate difficulties through KOTRA’s Trade Investment 24, the Russia Desk of the Strategic Materials Management Institute, and the Emergency Response Team of the Korea International Trade Association.

Head Yeo said, “Local diplomatic missions and trade offices in Russia should monitor local trends related to this measure in real time and promptly gather necessary information,” adding, “The Ministry of Trade, Industry and Energy will focus on preparing countermeasures together with related organizations, centered on the Real Economy Countermeasure Headquarters.”

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