Singapore to Impose Restrictions on Russian Financial and Crypto Transactions

Crypto

In a rare move, Singapore is going to introduce restrictions on certain Russian financial transactions and crypto operations aimed at evading sanctions. The decision comes amid officially expressed concerns that Moscow’s invasion of Ukraine is a threat to the security of small states around the world.

Singapore becomes first Southeast Asian country to impose sanctions on Russia

For the first time in decades, as a former diplomat has acknowledged, Singapore is taking steps to sanction another nation without the approval of the United Nations Security Council. The city-state is preparing to do this against Russia for its military invasion of Ukraine, the South China Morning Post reported, quoting the Foreign Ministry as saying:

For a small state like Singapore, this is not a theoretical principle, but a dangerous precedent. This is why Singapore has strongly condemned Russia’s unprovoked attack on Ukraine.

In an announcement on Saturday, the department clarified that the measures include the introduction of export controls on items that can be used for military purposes as well as restrictions on business relations with certain Russian banks – VTB Bank, Vnesheconombank , Promsvyazbank and Bank Rossiya – and non-bank entities. Their assets and funds in Singapore will be frozen.

Providing financial services facilitating fund raising by the Russian government, the central bank or affiliated entities will not be permitted. Restrictions will also apply to some sectors of the economies of the two breakaway Ukrainian regions, Donetsk and Lugansk, which Russia decided to recognize as independent states.

In addition, some crypto flows could also be affected as the ministry revealed that it prohibits payment service providers operating with digital assets, including NFTs, from facilitating transactions that could be used to evade measures applicable to all other financial companies.

The move comes after Singapore’s Foreign Minister Vivian Balakrishnan told the parliament on the last day of February that Russia’s show of force threatens a world order that “would be profoundly inimical to the security and survival of small states,” the publication notes.

Singapore’s trade with Russia reached $3.7 billion last year, according to official data provided by the Ministry of Trade and Industry. Imports from the Russian Federation and Ukraine combined were only around 0.8% of the total received by the island nation.

The report further reveals that Singapore’s major banking institutions are already restricting trade financing for Russian raw materials. That includes a halt on issuing in U.S. dollars for trades involving oil and liquefied natural gas.

Sanctions have been raining down on Russia since the start of the military assault on Ukraine. Most of them were imposed by the United States, the EU and their allies. Singapore is so far the only Southeast Asian country to introduce similar measures despite the majority of Association of Southeast Asian Nations (ASEAN) members condemning Russia’s attack at the UN

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