ISSN 2330-717X

Ukraine Crisis: Russian Banks Start To Feel Sanctions; Industrial Activities Shrank In Feb.

By

British banking group HSBC, France’s Societe Generale and South Korean lenders are winding down relationships with a host of Russian banks, as they put Western sanctions against Russia into practice.

Advertisement

“The natural next step that we could potentially implement — we haven’t made any decision yet — but the natural next step might be to actually consider removing MSCI Russia or removing Russian securities from our indices,” said Dimitris Melas, MSCI’s head of index research and chair of the Index Policy Committee

TotalEnergies said it will no longer provide capital for new projects in Russia.

“TotalEnergies supports the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia,” it said.

Elsewhere, shipping group Maersk said it will temporarily halt all container shipping to and from Russia in response to Western sanctions on Moscow following its invasion of Ukraine.

The move follows similar decisions by Singapore-headquartered Ocean Network Express (ONE), Germany’s Hapag Lloyd and Swiss-based shipping group MSC.

Advertisement

The suspension, covering all Russian ports, would not include foodstuffs, medical and humanitarian supplies, Maersk said.

In addition, Bloomberg reported that KPMG would cut ties with certain Russian clients subjected to recent sanctions. 

Russian PMI

Russian manufacturing activity shrank in February as new orders fell for the first time in six months as businesses felt the impact of the COVID-19 pandemic, a survey showed on Tuesday.

The Markit Purchasing Managers’ Index, PMI, fell to 48.6 in February from 51.8 in the previous month, slipping below the 50.0 mark that separates expansion from contraction for the first time since September.

India’s SBI stops processing transactions

India’s SBI stops processing transactions involving sanctioned Russian entities 

The State Bank of India or SBI, India’s largest public-sector lender has decided to stop processing transactions involving sanctioned Russian entities, according to CNBC. 

According to the report, the bank will complete the transactions that are already in the pipeline, but they will refrain from processing new transactions that involve sanctioned Russian entities. 

Moreover, SBI has also advised clients to be cautious while doing Russian transactions. However, no ban has been advised yet. 

Banks measures

An advisory notice from HSBC, seen by Reuters, told staff how they should apply the new global sanctions on Russia.

Headed “Action Require” and dated Feb. 27, it highlights the fact that the UK Office of Financial Sanctions Implementation had authorized “The wind down of certain transactions involving VTB Bank and certain UK subsidiaries.” VTB, one of Russia’s biggest banks, is affected by British sanctions.

Mastercard’s move

Mastercard Inc. said late on Monday it had blocked multiple financial institutions from its payment network as a result of sanctions imposed on Russia over Moscow’s invasion of Ukraine.
Mastercard will continue to work with regulators in coming days, the company said in a statement. It also promised to contribute a $2 million for humanitarian relief. 

Mexican stance

Mexico’s President Andres Manuel Lopez Obrador said on Tuesday that Mexico will not take any economic sanctions against Russia for invading Ukraine, and he criticized alleged censorship of Russian state-sponsored media by social media companies.

Arab News

Arab News is Saudi Arabia's first English-language newspaper. It was founded in 1975 by Hisham and Mohammed Ali Hafiz. Today, it is one of 29 publications produced by Saudi Research & Publishing Company (SRPC), a subsidiary of Saudi Research & Marketing Group (SRMG).

Leave a Reply

Your email address will not be published.