Moscow Stock Exchange Amongst 50 Russian Entities Hit by New UK Sanctions

The UK has announced 50 new sanctions targeting Russia’s military and financial sectors – including the Moscow Stock Exchange – in a coordinated effort with G7 partners to support Ukraine. These sanctions aim to degrade Russia’s ability to fund and sustain its military operations in Ukraine.

The new targets include ships in Russia’s shadow fleet, key financial institutions, and suppliers supporting Russia’s military production. The sanctions were revealed during the Prime Minister’s attendance at the G7 Leaders Summit in Italy, underscoring the UK’s commitment to Ukraine and its resolve to weaken Russia’s war capabilities.

A notable aspect of these sanctions is the inclusion of vessels in Putin’s shadow fleet. These ships have been instrumental in bypassing UK and G7 sanctions, facilitating the ongoing trade in Russian oil. By targeting these vessels, the UK aims to disrupt Russia’s evasion tactics and increase the costs associated with circumventing international sanctions.

Additionally, the UK has committed £242 million in bilateral assistance to Ukraine, addressing immediate humanitarian, energy, and stabilization needs. The UK is also collaborating with international counterparts to establish a mechanism to leverage the extraordinary profits from immobilised Russian sovereign assets for the benefit of Ukraine.

Russia’s oil exports are a critical revenue source for funding its war in Ukraine. In 2023, taxes on oil production generated 8.9 trillion roubles, accounting for 31% of Russia’s total federal revenues. The new sanctions are designed to hinder Russia’s ability to generate revenue through its shadow fleet, further straining its financial resources.

These sanctions also extend to suppliers of military goods and logistics, targeting entities based in China, Israel, Kyrgyzstan, and Turkey, as well as ships transporting military goods from North Korea to Russia. By cutting off these supply lines, the UK aims to disrupt Russia’s military production capabilities.

Furthermore, the sanctions target core institutions within Russia’s financial system, including the Moscow Stock Exchange. This move aligns with similar actions taken by the US, which designated the Moscow Stock Exchange on June 12th.

Prime Minister Rishi Sunak emphasised the UK’s unwavering support for Ukraine, stating, “The UK will always stand shoulder to shoulder with Ukraine in its fight for freedom.

“Today we are once more ramping up economic pressure through sanctions to bear down on Russia’s ability to fund its war machine. Putin must lose, and cutting off his ability to fund a prolonged conflict is absolutely vital.”

Foreign Secretary David Cameron reiterated this stance, saying, “UK sanctions are starving Putin of the revenue he desperately needs to fund his war chest and making it harder to supply his war machine.

“We will continue to work alongside our partners to increase economic pressure and demonstrate that the UK and the G7 will stand by Ukraine in this fight.”

Since February 2022, sanctions have deprived Russia of over $400 billion in assets and revenues, equivalent to four more years of funding for the invasion.

The UK has sanctioned over 2,000 individuals and entities under its Russia sanctions regime. This includes 29 banks, representing over 90% of the Russian banking sector, and over 130 oligarchs and their families, whose combined net worth was around £147 billion at the time of the invasion.

Moreover, over £20 billion of UK-Russia bilateral trade, based on 2021 figures, is now subject to full or partial sanctions. There has been a 99% decrease in Russian imports into the UK and a 73% decrease in UK exports to Russia.

These comprehensive measures reflect the UK’s strategy to exert maximum economic pressure on Russia, aiming to curtail its military ambitions in Ukraine and demonstrate international solidarity with Ukraine in its fight for sovereignty and freedom.

Main Image: By Fitiss – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=29902362