Page 97 - RusRPTJul24

The CBR unexpectedly changed the start time for the start of trading on the foreign exchange market on June 13, pushing back trading to 9.50 am, instead of the usual 6.50am.
The US expanded smart sanctions introduced in December, amongst the most successful sanctions to date, that has hurt Russia and caused leading Chinese and Turkish banks to cut ties with Russian clients to avoid being hit with secondary sanctions.
The US Office of Foreign Assets Control (OFAC) released details of the new round of sanctions targeting Russian banks that serve as intermediaries in dollar trading on the Russian foreign exchange market. The Moscow Exchange suspended trading in dollars and euros as of the start of the following day beginning June 13.
“As President Biden and Group of Seven (G7) Leaders prepare to meet this week in Italy, the U.S. Department of the Treasury is issuing sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine,” OFAC said in a statement.
“Today’s actions ratchet up the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy; restrict the ability of Russian military-industrial base to take advantage of certain US software and information technology (IT) services; and, together with the Department of State, target more than 300 individuals and entities both in Russia and outside its borders—including in Asia, the Middle East, Europe, Africa, Central Asia, and the Caribbean—whose products and services enable Russia to sustain its war effort and evade sanctions,” OFAC said.
Foreign financial institutions risk being sanctioned for conducting or facilitating significant transactions, or providing any service, involving any sanctioned person. OFAC specifically named VTB Bank and Sberbank, Russia’s two biggest banks, as being off limits.
The new US restrictions have also impacted the National Clearing Centre, a counterparty to all currency transactions on the Moscow Exchange; the National Settlement Depository, Russia's primary securities depository; and the insurance companies Sogaz and RNPK.
Companies, banks, and investors can no longer trade dollars or euros via the Russian exchange. However, buying and selling FX is still possible, but only on the over-the-counter (OTC) market.
Trading in dollars, euros and the Hong Kong dollar as well as trading in precious metals has been suspended on the Moscow Exchange as a result of the sanctions. Viral videos showed long lines of Russians forming at money
97 RUSSIA Country Report July 2024 www.intellinews.com