UK statement on further economic sanctions against the Central Bank of the Russian Federation

Following previously announced sanctions aimed at imposing severe consequences on Russian President Vladimir Putin and the Russian economy, the Chancellor of the Exchequer, in coordination with the Governor of the Bank of England, today announces the British Government’s intention to introduce further restrictive economic measures in response to the invasion of Ukraine by Russia through attacks on the Central Bank of the Russian Federation (CBR). This action is being taken jointly with the US and the European Union to prevent the CBR from using its foreign exchange reserves in a way that undermines the impact of the sanctions imposed by us and our allies, and to undermine its ability to conduct foreign exchange transactions Support the Russian ruble.

The UK Government will promptly take all necessary steps to enforce restrictions prohibiting any person or entity in the UK from engaging in financial transactions with the CBR, the Russian National Wealth Fund and the Treasury of the Russian Federation. The UK Government intends to make further such designations this week in collaboration with our international partners.

The Chancellor said:

These measures show our determination to impose tough economic sanctions in response to the Russian invasion of Ukraine. We are announcing this action, in swift coordination with our US and European allies, to once again move in lockstep with our international partners, to demonstrate our unwavering determination to impose the ultimate cost on Russia and cut it off from the international financial system as long as this conflict endures .

The Governor of the Bank of England said:

The Bank of England continues to take all necessary measures 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 the EU and US authorities, as an important and powerful demonstration of the UK’s commitment to the international rule of law.

Background for media

New sanctions include:

  • Restrictions to prohibit British persons from conducting financial transactions with the Central Bank of the Russian Federation, the Russian National Property Fund and the Ministry of Finance of the Russian Federation.

  • Restrictions on Russian financial institutions.

  • Measures to prevent Russian companies from issuing Transferable Securities and Money Market Instruments in the UK. This will be a far-reaching complement to existing financial restrictions. This comes on top of the Russian state’s previously announced ban on sovereign debt in the UK.

  • A power to prevent certain 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 not be able to process payments through the UK or access UK financial markets.

  • A set of measures to significantly tighten our trade restrictions with Russia. This includes an export ban on a range of high value and critical engineering equipment and components in sectors such as electronics, telecoms and aerospace.

  • The previously announced extension of the financial and trade measures applicable to Crimea to the DNR and LNR regions.

  • All general approvals related to sanctions are published here on OFSI’s pages.

Our sanctions package, the strongest economic measures the UK has ever enacted against Russia, will have devastating consequences for President Vladimir Putin and Russia:

  • Sanctions will devastate Russia’s economy and are aimed squarely at Vladimir Putin and his inner circle, including Sergei Lavrov.

  • More than 100 companies and oligarchs at the heart of Putin’s regime have been hit with hundreds of billions of pounds in sanctions, asset freezes and travel bans.

  • Hitting Russia’s banking and defense sectors hard; Asset freeze at VTB, Russia’s second-biggest bank, worth £154 billion, Rostec, Russia’s defense giant, responsible for $13 billion a year in arms exports. Sanctions will also soon be imposed on 571 members of the Duma and Federation Council who sanctioned the invasion of Ukraine.

  • We have banned Aeroflot and all other Russian commercial and private jets from UK airspace.

  • This isn’t the end. We are working in lockstep with allies to go further and exclude Russian banks from the SWIFT financial system.

  • We will introduce new financial measures to freeze Russian banks’ assets and introduce legislation in Parliament banning the Russian state and Russia’s economically important industries and companies from financing themselves in the UK money markets – the main financial center in Europe.

  • Working with allies, we will paralyze Russia’s economic development in both the short and long term. The UK and our allies are united and clear that nothing and nobody is off the table.

  • British sanctions also apply to Belarusian individuals and organizations who supported the Russian invasion.

Find out more about the UK sanctions on Russia here.

You can also see the full UK sanctions list.

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