UK targets Russian central bank with new sanctions

The United Kingdom has taken further measures against Russia, cutting off Moscow’s major financial institutions from Western financial markets in response to Russia’s military actions in Ukraine.

The government said Monday that it banned any British entities from conducting transactions with the Russian central bank, finance ministry and wealth fund.

It also noted that it would preclude Russian companies from issuing transferable securities and money market instruments in the UK.

“The UK Government will immediately take all necessary steps to bring into effect restrictions to prohibit any UK natural or legal persons from undertaking financial transactions involving the CBR, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation,” the government said.

Britain said it would have “a power to prevent designated banks from accessing Sterling and clearing payments through the UK.”

“These measures demonstrate our determination to apply severe economic sanctions in response to Russia’s invasion of Ukraine,” Finance Minister Rishi Sunak said.

The latest sanctions also include additional restrictions against Russian financial institutions and a range of measures to tighten trade restrictions against Moscow.

Britain also said that further designations will be announced this week.

Russian President Vladimir Putin announced on Thursday a “special military operation” in Ukraine’s Donbas region to “defend people” subjected to “genocide” there against government forces, stressing that Moscow has “no plans to occupy Ukrainian territory.”

Britain has placed 1,000 troops on standby in Eastern Europe. In addition, Prime Minister Boris Johnson has said that the UK will do all it can to get more arms to the Ukrainian force.

Putin said Sunday that he put Russia’s nuclear deterrence forces on “high alert,” reacting to aggressive statements by NATO’s leading members.

The announcement came a day after Germany and other European countries said they would speed weapons and other military assistance to help Ukraine battle Russian forces. It also followed a warning by UK Foreign Secretary Liz Truss that if Russia’s military operation in Ukraine was not “stopped,” it could lead to a conflict with NATO.