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Singapore announced the imposition of sanctions against Russia

On Friday, March 5, the Ministry of Foreign Affairs of the Republic of Singapore released the country's official position on Russia;

According to the statement, Singapore is a consistent and steadfast supporter of international law and the principles enshrined in the United Nations (UN) Charter on respecting the sovereignty, political independence and territorial integrity of all countries, large and small, and therefore strongly condemns the outbreak of hostilities in Ukraine;

Here are excerpts from the official statement of the Singapore Foreign Ministry:

While we continue to value good relations with Russia and the Russian people, we cannot accept the Russian government's violation of the sovereignty and territorial integrity of another sovereign state. For a small state like Singapore, this is not a theoretical principle, but a dangerous precedent.

We will impose export controls on goods that can be directly used as weapons to harm or subdue Ukrainians, as well as goods that can contribute to offensive cyber operations. In this regard, we will impose a ban on exports to Russia of (a) all goods from the Military Goods List and (b) all goods from the Electronics, Computers, and Telecommunications and Information Security categories of the Dual-Use Goods List of the Strategic Goods (Control) Order 2021."

We will impose financial measures targeting certain Russian banks, certain organizations and certain activities, as well as fundraising activities in favor of the Russian government. Digital payment token service providers are specifically prohibited from facilitating transactions that could help circumvent these financial measures. The measures apply to all financial institutions in Singapore, including banks, financial companies, insurers, capital markets intermediaries, securities exchanges and payment service providers.

Singapore financial institutions are prohibited from:

(a) Enter into transactions or establish business relationships with the following Russian banks:

  • "VTB Bank".
  • "Vnesheconombank."
  • "Promsvyazbank"
  • Rossiya Bank

If there is an existing business relationship with the listed banks, the financial institutions should freeze any assets and funds of these four banks;

(b) Provide financing or financial services in connection with exports from Singapore or any other jurisdiction of goods subject to Singapore export controls in relation to Russia;

These goods include all items on the List of Military Goods, as well as high-tech dual-use goods  which may be used for both commercial and military purposes.

Strategic Goods Subject to Control are listed in the Strategic Goods (Control) Order 2021, specifically all category codes in Category 3 - Electronics, Category 4 - Computers, and Category 5 - Telecommunications and "Information Security."

Complete list of strategic and dual-use goods;

(c) Provide financial services with respect to designated Russian nonbank entities that engage in activities specified in paragraph (b). 

If a business relationship exists, financial institutions must freeze any assets and funds of those designated entities. Details on the designation of nonbank entities will be provided at a later date.

(d) Enter into transactions or agreements, or provide financial services, that facilitate the raising of funds:

  • The Government of the Russian Federation;
  • The Central Bank of the Russian Federation;
  • Any entity owned or controlled by them, or acting at their direction or on their behalf.

The prohibitions apply to the purchase and sale of new securities, the provision of financial services facilitating the raising of new funds, and the provision of or participation in the provision of any new loan to the above entities.

The Government of Singapore and the Central Bank of Singapore will also cease to invest in newly issued securities of the aforementioned entities.

(e) Enter into transactions or provide financial services in respect of the following sectors of the Donetsk and Lugansk regions:

  • Transportation;
  • telecommunications;;
  • energy; and
  • prospecting, exploration and production of oil, gas and mineral resources.

(f) Enter into or facilitate any cryptocurrency transactions to circumvent any of the prohibitions in paragraphs (a)-(e) above;

Prohibited cryptocurrency transactions cover all cryptocurrency transactions and extend to payments and settlements for transactions involving digital assets.