SWIFT, the global financial messaging system for banks, said March 1 it’s still waiting to hear from the U.S., the EU and other countries about which Russian banks to exclude from its services. A White House official said this week the U.S. and allies were compiling a list of banks, which will likely include any Russian financial institutions subject to multilateral sanctions (see 2202280043). “Diplomatic decisions have brought SWIFT into efforts to bring this crisis to an end, and we will always comply with applicable sanctions laws,” SWIFT said in a statement. “We are engaging with these authorities to understand which entities will be subject to these new measures and will disconnect them once we receive legal instruction to do so.”
The EU released a fact sheet laying out restrictions against Russia that now amount to sanctions on 654 individuals and 52 entities, along with sectoral sanctions that cover Russia's financial, energy, transport and dual-use goods industries. The EU Feb. 25 suspended its visa facilitation process for Russian diplomats, officials and businesspeople, which typically grants them privileged access to the EU.
The United Kingdom maintained its barrage of restrictions imposed against Russia following its invasion of Ukraine. So far, the government has sweeping sanctions on a host of Russian individuals and entities, including the Russian Central Bank and President Vladimir Putin himself (see 2202280024). This deluge continued on Feb. 28 and March 1 with greater action to isolate Russia and freeze it out of the global economy.
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The White House today announced a series of additional sanctions and export controls targeting Russia and Belarus for the invasion of Ukraine, including new restrictions on technology and software exports to Belarus, export controls on shipments of oil and gas extraction equipment to Russia, blocking sanctions on 22 Russian defense entities and a prohibition on Russian cargo planes flying to and from the U.S. Commerce will also add more entities to its Entity List that support Russian and Belarusian security services and defense efforts.
New U.S. sanctions and export controls against Russia could present significant additional compliance and due diligence requirements for companies operating in the region and more trade restrictions are likely on the way, law firms said.
Global shipper Maersk says it is "monitoring and preparing to comply with the ever-evolving sanctions and restrictions imposed against Russia while we safeguard our operations and our people in consideration of the constant developing situation." The company said Feb. 28 it may suspend bookings, both on ocean and inland, to and from Russia. "For cargo already on the water we will do our utmost to deliver it to its intended destination," it said. "We have a sharp focus on safeguarding reefer containers and keeping cold chain operations as stable as possible, as the commodities include important goods such as groceries and pharmaceuticals. We are doing everything possible to prevent risk to the above cargo and in turn risk to the end-users in need of these commodities. It’s also worth noting that air space is also gradually being restricted and our air services will be impacted," the company said.
A spokesperson for China's Ministry of Foreign Affairs again backed away from imposing sanctions on Russia following its invasion of Ukraine. "China does not agree with resolving issues with sanctions, still less unilateral sanctions that lack the basis of international law," the spokesperson said, according to a transcript in English of a regular press conference. "Reality has long proven that sanctions not only fail to resolve problems, but will create new ones. It will result in a situation where multiple players lose, and will disrupt the process of political settlement." The spokesperson did echo a sentiment previously expressed by President Xi Jinping that a "Cold War mentality" is to be avoided and that European peace should be brought "through dialogue and negotiation." China has walked the line of refusing to impose any restrictions on Russia following the invasion while saying that "all countries' sovereignty and territorial integrity should be respected and upheld."
Switzerland will adopt all the sanctions imposed by the EU against Russia since its invasion of Ukraine, the country announced Feb. 28. The move, a shift in Switzerland’s longstanding position of neutrality, will impose “immediate” financial sanctions against Russian President Vladimir Putin, Prime Minister Mikhail Mishustin, Foreign Minister Sergey Lavrov and other people and companies listed by the EU last week. Switzerland said it’s “responding to the serious violations of international law for which these individuals are responsible.”
South Korea, Australia and Japan have announced new sanctions measures on Russia following its assault on Ukraine. South Korea and Australia said Feb. 28 they are joining many other nations, including the U.S., the U.K. and the EU member states, by removing certain Russian banks from SWIFT, the global interbank messaging service. The South Korean government also announced a set of export controls over certain strategic goods to Russia, according to an unofficial translation, and Australia announced sanctions on the Central Bank of Russia, President Vladimir Putin and high-ranking government officials.