Singapore Imposes Financial Sanctions on Russia in Response to Ukraine Invasion

In a move to condemn Russia’s invasion of Ukraine and uphold international law, Singapore has announced that it will impose financial sanctions on Russia. The sanctions aim to constrain Russia’s capacity to conduct war against Ukraine and undermine its sovereignty.

Export Controls and Restrictions

According to Singapore’s Minister for Foreign Affairs, the country will impose export controls on items that can be directly used as weapons or contribute to offensive cyber operations. Specifically:

• All permit applications to Russia involving military goods and dual-use electronics, computers, and telecommunications equipment will be rejected.

Financial Measures

The government will also impose financial measures targeted at designated Russian banks, entities, and activities in Russia, as well as fund-raising activities benefiting the Russian government. Digital payment token service providers are prohibited from facilitating transactions that could aid the circumvention of these financial measures.

Restrictions on Financial Institutions

Financial institutions in Singapore, including:

• Banks
• Finance companies
• Insurers
• Capital markets intermediaries
• Securities exchanges
• Payment service providers

will be subject to the following restrictions:

• Entering into transactions or establishing business relationships with four designated Russian banks: VTB Bank Public Joint Stock Company, The Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank, Promsvyazbank Public Joint Stock Company, and Bank Rossiya.
• Freezing assets and funds of these banks where there are existing business relationships.
• Providing financing or financial services in relation to the export from Singapore or any other jurisdiction of goods subject to Singapore’s export controls on Russia.
• Providing financial services in relation to designated Russian non-bank entities involved in activities related to military goods exports.
• Entering into transactions or arrangements that facilitate fund-raising by the Russian government, Central Bank of the Russian Federation, or entities owned or controlled by them.

Next Steps

The Monetary Authority of Singapore will issue directions to all financial institutions shortly, setting out the details of these measures.