Dáil Éireann Debate, Tuesday - 8 March 2022
205. Deputy Neale Richmond asked the Minister for Finance if the suspension of Euro clearing for Russian banks will be supported in view of the illegal invasion of Ukraine by Russia; and if he will make a statement on the matter. [12656/22]
View answerIreland is at the forefront of EU efforts to adopt strong sanctions packages which will have an impact on the Russian economy. EU sanctions announced to date in response to the situation are already the most extensive ever.
European countries are aiming to stop Russian companies from tapping their markets for financing by barring access to market infrastructure.
Clearing is the process by which a ‘clearing house’, also called a ‘central counter party’ (CCP), acts as the middleman for both the buyer and the seller of a financial instrument.
The European Association of CCP Clearing Houses (EACH) represents the interests of Central Counterparties in Europe.
Given the actions of Russia against Ukraine and in consistency with wider EU sanctions, EACH announced that it felt the need to take action, both from the perspective of adherence to current and possible wider sanctions and to act in the best interests of its membership.
The EACH Board therefore decided to temporarily suspend Russian Member CCP National Clearing Centre (NCC) from EACH in line with the organisations Articles of Association. The NCC is part of the Moscow Exchange Group and the only Russian CCP that is recognised under applicable EU legislation.
Sanctions on Russia’s access to EU capital and financial markets have now been expanded to include the exclusion of seven Russian banks from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) messaging system.
Ireland argued in favour of the exclusion of Russian banks from SWIFT and we are now working to implement these sanctions.
Ireland will continue to engage with the EU on any additional sanction proposals moving forward, including in the area of clearing.
