Singapore will impose restrictions on Russian financial transactions, and crypto operations that are aimed at bypassing sanctions in a rare decision. 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 is the First Southeast Asian Nation To Impose Sanctions against Russia
A former diplomat has confirmed that Singapore is now taking steps to approve another country without the approval of the United Nations Security Council for the first time since decades. According to the South China Morning Post, Singapore is planning to sanction Russia for its invasion of Ukraine.
This is a very dangerous precedent for a tiny state such as Singapore. This is why Singapore has strongly condemned Russia’s unprovoked attack on Ukraine.
In an announcement published Saturday, the department detailed that the measures include the introduction of export controls on items that can be used for military purposes as well as restrictions on doing business with selected Russian banks — VTB Bank, Vnesheconombank, Promsvyazbank, and Bank Rossiya — and non-bank entities. They will be unable to access their assets or funds in Singapore.
It will be prohibited to provide financial services that facilitate fund raising by Russia’s central bank, or its affiliated entities. Some restrictions will apply to the economy of two regions of Ukraine that broke away, Donetsk or Lugansk. These areas were recognized as separate states by Russia.
Additionally, some crypto flows could also be affected by the revelation that the ministry was banning payment service providers with digital assets (including NFTs) from helping facilitate transactions that could be used as a way to avoid the financial company regulations.
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. Only 0.8% of the total imports received by Singapore came from Ukraine and Russia.
The report further reveals that Singapore’s major banking institutions are already restricting trade financing for Russian raw materials. This includes an end to the issuing of U.S. Dollars for oil-related trades.
Since the start of the war on Ukraine, sanctions have fallen on Russia. They have mostly been enforced by the U.S. and EU along with their allies. Singapore is so far the only Southeast Asian nation to introduce similar measures despite the majority of the members of the Association of Southeast Asian Nations (Asean) condemning Russia’s attack at the U.N.
Is it possible that other Asean countries could join Singapore in placing sanctions on Russia because of its military invasion? Leave your comments below.
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