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Sanctions: Russia

Question for Treasury

UIN 204, tabled on 10 May 2022

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of UK financial sanctions relating to Russia following the invasion of Ukraine.

Answered on

17 May 2022

The UK has imposed the most severe package of financial sanctions in history in response to Russia’s unprovoked and illegal invasion of Ukraine. Working with partners, we are effectively isolating Russia from the global economy, and making it far more difficult for Russian oligarchs and businesses to operate outside their own borders.

Our sanctions are having an impact on Russia’s economy; Putin has acknowledged the “problems and difficulties” caused by sanctions and the IMF has estimated Russia’s GDP will shrink by 8.5 percent this year.

We are cutting off Russia’s access to finance – with asset freezes on major banks - including Russia’s largest bank Sberbank - and the removal of selected banks from SWIFT. We have sanctioned Russia’s largest banks with global assets worth £500bn pre-invasion. Over 3 million Russian companies are now barred from raising money on UK capital markets. The Russian state cannot raise funds in the UK.

Sanctions on Russia’s central bank, in concert with international partners, prevent it from liquidating or moving its foreign currency reserves and assets, and undercut its ability to engage in foreign exchange transactions to support the rouble.

We will go broader, we will go deeper, and we will close loopholes. We are united with the G7 to bring this war to an end. And, together, we will encourage the widest possible set of countries to act with us, with a focus on those who can have the biggest impact on Putin and his war machine.

Answered by

Treasury