Select a region
The Policy & Resources Committee announced late yesterday that Guernsey is applying financial sanctions imposed by the UK on five Russian banks and three billionaires after the country's politicians authorised President Vladimir Putin to send troops into eastern Ukraine.
Accusing Russian President Vladimir Putin of denying Ukraine’s statehood and “establishing the pretext for a full-scale offensive”, UK Prime Minister Boris Johnson announced what he described as a “first tranche” of sanctions, although they follow another round of sanctions imposed earlier this month.
The Policy & Resources Committee, led by Deputy Peter Ferbrache, swiftly announced that the latest sanctions had force in the Bailiwick.
"Following a recent widening of its Russian sanctions framework, the UK has today listed a range of individuals and entities, including banks, as now being covered by the framework. This framework includes asset freezes and the listings have automatic legal effect in the Bailiwick," said the Committee.
"The Policy & Resources Committee advised financial services businesses and other businesses subject to anti-money laundering requirements of the widening of the framework and has today also advised these businesses of the new listings.
"The Committee will continue to liaise closely with the UK on the application of further sanction measures as the situation develops."
Pictured: Russia's military has been massing on its border with Ukraine for weeks and yesterday the country's politicians authorised President Vladimir Putin to send troops into two regions in eastern Ukraine held by separatists loyal to Russia.
The latest sanctions are against Bank Rossiya, Black Sea Bank for Development and Reconstruction, IS Bank, Genbank and Promsvyazbank. They are not Russia's largest banks but are considered close to President Putin's circle.
The billionaires facing sanctions are Gennadiy Nikolayevich Timchenko, Boris Romanovich Rotenberg and Igor Arkadyevich Rotenberg. As associates of President Putin, the three men had already been on the United States' sanctions list for a number of years.
The Guernsey Financial Services Commission, which regulates the Bailiwick's finance industry, said: “All businesses must check whether they maintain any accounts or otherwise have any kind of relationship with the persons referred to in the sanctions notice, must treat any funds, other assets or economic resources as frozen and must report any findings to the Policy & Resources Committee immediately."
Guernsey Finance - which brings together the States and industry to promote Guernsey's financial services sector internationally and is chaired by Deputy Lyndon Trott - said its senior officials would meet today and discuss developments in Ukraine.
Several MPs and others criticised the UK's sanctions as not going nearly far enough.
But writing in The Times this morning, UK Foreign Secretary Liz Truss said that "nothing is off the table" for G7 nations and that the measures announced yesterday were merely the first wave of a "closely co-ordinated effort to ratchet up the pressure" and "keep turning up the heat" on the Russian President and those closest to the Kremlin.
Pictured: Ukraine is the second-largest country in Europe by area. It has a population of around 41million. Between 1919 and 1991, it was part of the Soviet Union.
Who are the people and institutions being sanctioned?
The States of Jersey announced the same sanctions as in the UK and Guernsey and provided firms with the following information about the banks and individuals sanctioned.
Gennadiy Nikolayevich Timchenko (59)
“Mr Timchenko is a major shareholder in Bank ‘Rossiya’. ‘Rossiya’ is a key stakeholder in the National Media Group which supports Russian policy which is destabilising Ukraine.
"Following the annexation of Crimea, ‘Rossiya’ has expanded its bank branches and provision of insurance and investment throughout Crimea and Sevastopol; and offers support to military activities and the formation of major transport links and cards that allow the public to travel easily around the peninsula.
“Therefore, Bank ‘Rossiya’ has supported the consolidation of Crimea into the Russian Federation by integrating the financial system following the annexation of Crimea. Timchenko therefore is or has been involved in engaging in, providing support for, or promoting any policy or action which destabilises Ukraine or undermines or threatens the territorial integrity, sovereignty or independence of Ukraine. Additionally, Timchenko is associated with a person involved in destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine.”
“Mr Rotenberg is a prominent Russian businessman with close personal ties to Russian President, Vladimir Putin.
"Rotenberg is a major shareholder of SMP Bank and sits on its Board of Directors. Rotenberg therefore is or has been involved in obtaining a benefit from or supporting the Government of Russia by virtue of owning or controlling directly or indirectly" or "working as a director" or "equivalent" at SMP Bank which is a Russian Government affiliated-entity which obtains a financial benefit or other material benefit from the Government of Russia and is carrying out business in the finance sector which is a sector of strategic significance to the Government of Russia.”
“Igor Rotenberg is a prominent Russian businessmen with close familial ties to President Putin.
"Igor Rotenberg is the Chairman of the Board of Directors of National Telematic Systems (NTS).
"NTS is conducting business in the transport sector, which is of strategic significance to the Government of Russia, and therefore through his role as Chairman of the Board of Directors to NTS, Igor Rotenberg is benefiting from or supporting the Government of Russia. Igor Rotenberg is also a shareholder in RT-Invest Transport Systems (RTITS). RTITS, through the 'Platon' toll system, is conducting business in the transport sector, which is of strategic significance to the Government of Russia. It is also obtaining a benefit from the Government of Russia.”
"Bank 'Rossiya' is a Russian bank privately owned by elite Russian billionaires with direct links to Putin. Bank 'Rossiya' also has important stakes in the National Media Group, which controls television stations which actively support the Russian Government's policies of destabilisation in Ukraine.
"Since the annexation of Crimea, Bank “Rossiya” has opened branches across Crimea and Sevastopol, and provided travel cards for the public to travel across the peninsula thereby supporting the integration of Crimea and Sevastopol into the Russian Federation through the financial system. Bank 'Rossiya' has also contributed to the provision of insurance and investment throughout Crimea and Sevastopol and services to support military capability and major transport links.
"Bank 'Rossiya' therefore is or has been involved in providing financial services, or making available funds, economic resources, goods or technology and engaging in, providing support for, or promoting any policy or action that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine."
“'Black Sea Bank for Development and Reconstruction' is a Crimean bank that was created immediately after the illegal annexation of Crimea in 2014. It has capitalised on the sector’s fear of Western sanctions and the lack of banks in Crimea.
"By operating in Crimea, JSC 'Black Sea Bank for Development and Reconstruction' has consolidated Crimea into the Russian Federation through the financial system."
"Joint Stock Company (JSC) Genbank is a Russian financial institution that operates extensively in the occupied territory of Crimea. By providing banking and other financial services in the annexed territory of Crimea it contributes to undermining or threatening the territorial integrity, sovereignty and independence of Ukraine."
"Since the annexation of Crimea, IS Bank, a Russian Bank, has operated across Crimea, after Ukrainian banks were stopped from operating there. Its business development is directly tied to the annexation of Crimea.
"In addition, it has been providing financial services, thereby facilitating the integration of Crimea into the Russian Federation through the financial system."
"PJSC Promsvyazbank is a Russian state-owned bank. Its main task is to service the state defence order and to finance defence industry enterprises
"In its role as a pivotal bank for the Russian military-industrial complex, including servicing nearly 70% of the state contracts signed by the Defence Ministry as a government customer, Promsvyazbank provides financial services or makes available funds and economic resources that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine."
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.