Banks in Belarus Face EU Penalties
In a significant move, the European Union (EU) has announced the 18th package of sanctions against Russia, which includes a series of financial restrictions aimed at cutting off key financial channels supporting Russian and Belarusian actions tied to the war in Ukraine. This comes as part of a broader effort to escalate the financial pressure on Moscow and Minsk.
The 18th package, approved by the EU Council on July 18, 2022, includes 14 individuals and 41 companies. Among the most notable additions are several Russian credit and financial institutions, bringing the total number of sanctioned Russian banks to 45. These banks are considered critical to Russia’s federal and regional finances, cross-border payments, and operations in occupied Ukrainian territories.
Belarusian financial institutions are also not exempt from these sanctions. Belgraprombank, Bank Dabrabyt, Bank Development of the Republic of Belarus, and Belinvestbank have been subjected to sanctions, aligning the Belarusian financial sector more closely with the sanctions against Russia.
The new measures against Russia, as part of the 18th package, were described as "one of the toughest" by the EU’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas. Among the restrictions approved by the EU Council is the reduction of the ceiling on Russian oil prices from $60 to $47.6 per barrel.
Estonia's Foreign Minister, Margus Tsahkna, stated that the EU has already begun work on the 19th package of anti-Russian sanctions. This continued action suggests that the EU is committed to maintaining and intensifying the financial pressure on Russia.
Notably, the sanctions also expanded to include two Chinese banks linked to Russia’s System for Transfer of Financial Messages (SPFS), a Russian alternative to SWIFT, recognizing its role in evading EU financial restrictions. Additionally, financial restrictions were targeted at cryptoasset service providers and third-country entities supporting Russia’s financial resilience, banning transactions that facilitate evasion of sanctions through alternative payment systems like SPFS.
The Belarus sanctions framework was also extended, with eight more Belarusian legal entities sanctioned, totaling more than 360 individuals under Belarus-related sanctions. In March 2022, Belgraprombank, Bank Development, and Bank "Dabrabyt" were disconnected from SWIFT and were added to the sanctions list.
Russia has adapted to life under the existing sanctions, according to Dmitry Peskov, the spokesperson for the Kremlin. However, the 18th package of sanctions has been met with criticism from Moscow, with Peskov stating that the Kremlin will analyze its contents to "minimize the consequences" of the sanctions.
In response to these sanctions, it is expected that both Russia and Belarus will continue to seek alternative financial channels to circumvent the restrictions. The EU remains vigilant in its efforts to monitor and counter these efforts, ensuring that the financial pressure on Russia and Belarus continues to mount.
The 18th package of EU sanctions against Russia includes 45 Russian banks, Bank development, Bank Dabrabyt, Belgraprombank, and Belinvestbank from Belarus, and two Chinese banks tied to the Russian SPFS system. These financial restrictions aim to cut off key financial channels supporting actions related to the war in Ukraine. Russia is expected to continue seeking alternative channels to circumvent these sanctions. The EU remains vigilant in its efforts to monitor and counter these attempts, intensifying the financial pressure on Russia and Belarus. Furthermore, the EU has started work on the 19th package of anti-Russian sanctions, indicating its commitment to politics and legislation that curb conflict-related financing in the banking-and-insurance, finance, business, and general-news industries.
