Zelensky proposed imposing sanctions against all Russian banks for 50 years

President of Ukraine Volodymyr Zelensky submitted to the Verkhovna Rada a draft resolution on the imposition of sanctions for a period of 50 years against all banks registered or located in Russia, including the Central Bank of the Russian Federation. The corresponding bill is published on the website of the Verkhovna Rada.

According to the draft resolution, Mr. Zelensky also proposed to impose sanctions against Russian non-bank credit institutions, payment system operators, professional participants in the stock market, insurance companies and investment funds.

The paper proposes the following restrictions:

• stop transactions with assets of financial institutions of the Russian Federation;
• a ban on establishing business relations with Russian financial institutions;
• prohibition of transactions and investments made in favor of financial institutions of the Russian Federation;
• a ban on the purchase of securities issued by Russian financial institutions, with the exception of alienation in favor of Ukraine;
• stopping the fulfillment of economic and financial obligations in favor of Russian financial institutions;
• cancellation of existing and prohibition of new registrations of payment systems operated by Russian organizations;
• prohibition of operations leading to the avoidance of the imposed restrictions.

February 5, Mr. Zelensky introduced sanctions against 200 legal entities from the Russian Federation, including the state corporation Rosatom, its subsidiaries and other companies in the nuclear industry of the Russian Federation. February 12 he signed a decree imposing sanctions against 200 Russian individuals involved in the Russian nuclear industry, including Yury Ushakov, Assistant to the President of the Russian Federation for Foreign Policy and a member of the Supervisory Board of Rosatom.

In May Ukraine seized 99.8% of the shares of Prominvestbank, owned by VEB.RF, and 100% of the shares of the International Reserve Bank, owned by Sberbank. Zelensky’s decree also approved the seizure of other assets of subsidiary banks of Russian financial institutions in Ukraine, with the exception of UAH 3 billion of the International Reserve Bank, aimed at satisfying the claims of its creditors.

Erdni Kagaltynov