Sanctions Against All Russian Banks for 50 Years, Large-Scale Privatization, ..

Sanctions Against All Russian Banks and Financial Institutions have been Imposed for 50 Years: the President’s Decree

According to the statement of Yaroslav Zheleznyak MP, on 23.02.2023, the Verkhovna Rada of Ukraine supported President’s Decree No. 89/2023 regarding the imposition of economic sanctions to financial institutions of the Russian Federation. 325 MPs voted in favour.

This Decree proposes to approve the decision of the National Security and Defense Council of Ukraine (NSDC) dated 22.02.2023 “On the imposition of sectoral special economic and other restrictive measures (sanctions) to financial institutions of the Russian Federation”.

The Decree enters into force simultaneously with the approval of this decision by the Verkhovna Rada.
Thus, the decision proposes to apply special economic sanctions and other restrictive measures to all banks registered / located in the Russian Federation for a period of 50 years.

In particular, it should be applied to the Central Bank of the Russian Federation, non-bank credit organizations, payment system operators, professional stock market participants, insurance companies, investment funds and other institutions.
The proposed restrictions include a ban on any operations with the assets of such financial institutions, conducting business relations, concluding contracts, purchasing securities, making investments in such institutions, etc.

It is also mentioned in the decision about the need to impose a ban for individuals and legal entities to take actions that may lead to the violation or avoidance of such sanctions.

Restoration of Large-Scale Privatization: as Reported by the SPFU

On 21.02.2023, the Cabinet of Ministers of Ukraine adopted a resolution approving the Procedure of conducting electronic auctions for the sale of large-scale privatization objects.

According to the announcement of the State Property Fund of Ukraine (SPFU), assets worth more than 250 million UAH fall under the objects of such privatization. Previously, objects of large-scale privatization, unlike small-scale ones, used to be sold at offline auctions.

According to the statement of the head of the SPFU, Rustem Umyerov, the goal of large-scale privatization is to attract private investments in the development of the economy, create new jobs and increase the competitiveness of Ukrainian enterprises.
The announcement also states that in order to fully launch large-scale privatization, it is necessary for the Verkhovna Rada to pass a decision that will allow the SPFU to set requirements for potential investors.

The List of Subjects of Primary Financial Monitoring has been Expanded: the Government’s Resolution

On 22.02.2023, a resolution of the Cabinet of Ministers of Ukraine entered into force, amending the procedure for regulating the activities of Subjects of Primary Financial Monitoring. Thus, the changes provide that business entities that carry out trade activities in cultural values and/or provide intermediary services in such activities are obliged to register at the State Financial Monitoring Service of Ukraine as subjects of primary financial monitoring no later than the day of establishing business relations with the client (conducting a financial transaction) in accordance with the procedure provided by the Law of Ukraine dated 06.12.2019 No. 361-IX.