Singapore imposes financial sanctions, export controls on Russia, following west

By TPUwebTeam

March 5, 2022

AsiaBusinessNews

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Singapore will impose financing measures against Russia’s central banks, Russian corporations and organizations, as well as fundraising activities for the Russian government, Singapore’s Foreign Ministry (MFA) said on Saturday (Mar 5).

The Singapore government will also impose export controls on items that could be “directly used as weapons to harm or humiliate the Ukrainian people”, as well as items that could affect cyber-attacks, the MFA added in a press statement.

The sanctions and sanctions against Russia come as a result of its attack on Ukraine, which began on February 24.

Earlier this week, Foreign Minister Vivian Balakrishnan said Singapore would impose sanctions on Russia “in cooperation with other like-minded countries”, and cited “unprecedented magnitude” of Russia’s invasion.

On Saturday, the MFA said Ukraine’s attack was “contrary to” the United Nations Charter and “a clear and serious violation of international law”.

“While we continue to acknowledge the good relations with Russia and the Russian people, we will not condone the Russian government’s violation of the sovereignty and integrity of the private sector,” the department said.

“In a small country like Singapore, this is not a mindset, but a dangerous example. That is why Singapore has strongly condemned Russia’s relentless invasion of Ukraine. ”
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The sanctions are aimed at undermining Russia’s ability to “fight Ukraine and undermine its sovereignty”, the MFA added.

It elaborated on sanctions and measures to be taken by Singapore to respond to the Ukrainian invasion.

EXPORT RESOURCES

The Singapore Strategic Control System controls the transfer – export, transport, and transfer – of strategic assets which are usually military weapons or their components and high-tech assets that can be used for both commercial and military purposes.

Items under strategic asset management are listed in Strategic Goods (Control) Order (SGCO) 2021.

In order to “thwart Russia’s ability to wage war in Ukraine and cyber aggression”, all licensed activities to Russia that include all items listed on military assets under the SGCO will be rejected.
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All Category 3 (Electronic), Phase 4 (Computer) and Phase 5 (Communications) and Information Security on Dual Assets list under SGCO will also be rejected.

FINANCIAL CONTROLS

Singapore will impose financing measures against Russian banks, Russian corporations and organizations, as well as Russian government fundraising activities.

Providers of digital payment token services are specifically barred from assisting transactions that could help avoid these financial measures, the MFA said.

Financial institutions in Singapore will not be allowed to enter into trading or establish business relationships with four Russian banks: VTB Bank Public Joint Stock Company, Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank, Promsvyazbank Public Joint Stock Company and Bank Rossiya.

“Where there is a business relationship in place, financial institutions must suspend any assets and funds of the four banks,” the IMFA said.

Financial institutions in Singapore will also be prohibited from providing financial or financial services related to exports from Singapore or any other area under the control of assets under Singapore export controls in Russia.

These assets include all items listed in the Military Assets List and the categories specified in the SGCO Double Assets List.

Financial services in respect of selected Russian non-bank organizations involved in such activities will be blocked by Singapore.

“Where there is a business relationship, financial institutions must suspend any assets and funds of these designated entities. Details regarding the appointment of non-banking companies will be provided thereafter, ”the MFA said.

Financial institutions in Singapore do not have access to trading, programs or the provision of financial services that facilitate revenue collection: Russian government; Central Bank of the Russian Federation; any organization controlled or controlled by or acting in its direction.

Prohibition applies to the purchase and sale of new securities, the provision of financial services that facilitate new fundraising, and the making or participation in the making of any loans to companies owned or controlled by the Russian government and the Central Bank of the Russian Federation.

The Singapore government and the Singapore Monetary Authority will also stop investing in recently issued securities from the above organizations, the MFA said.