Dáil Éireann Debate, Wednesday - 2 March 2022
117. Deputy Gary Gannon asked the Minister for Foreign Affairs the specific sanction aimed at the Russian Federation as a consequence of its assault on Ukraine that will target the funnelling of funds through Russian shell corporations based in the International Financial Services Centre. [12148/22]
View answerTo date, the EU has adopted a broad range of measures in response to Russia’s unlawful invasion of Ukraine. These are the most significant sanctions ever adopted by the EU. Many of the sanctions are financial measures, aimed at weakening Russia’s economy and its financial system.
Asset freezes and travel bans are now imposed on almost 500 people, including bankers, oligarchs and businesspeople. Asset freezes have also been imposed on three Russian financial institutions (Bank Rossiya, PROMSVYAZBANK and VEB.RF).
The EU has also adopted a series of far-reaching sectoral financial sanctions measures, which are of general application throughout the EU rather than targeting specific corporations or financial centres. The key measures introduced to date:
- restrict the ability of the Russian State and Government, as well as certain entities, to access the EU’s capital and financial markets and services;
- extend prohibitions on lending and buying of securities to all five of the major Russian state-owned banks, as well as two private banks;
- prohibit the listing of new shares of Russian state-owned entities on EU trading venues, as well as related services;
- prohibit lending to and purchase of securities from certain Russian state-owned enterprises;
- prohibit the acceptance of deposits exceeding €100,000 from Russian nationals or residents;
- prohibit the EU central securities depositories from holding accounts from Russian clients;
- prohibit the selling of euro-denominated securities to Russian clients;
- prohibit any transactions in the EU with the Central Bank of Russia;
- prohibit investment, participation or contribution to projects co-financed by the Russian Direct Investment Fund;
- prohibit the sale, supply, transfer or export of euro denominated banknotes to Russia or to any natural or legal person, entity or body in Russia, including the Government and the Central Bank of Russia, or for use in Russia; and
- prohibit the provision of specialised financial messaging services to seven Russian banks (i.e. removal from SWIFT system).
The broad suite of financial sanctions that has been introduced is expected to impact on the financial services sector throughout the EU, including in Ireland. The Minister for Finance may be able to provide more detail on the specific implementation aspects of these financial sanctions in Ireland, including any implications for the International Financial Services Centre.
