August 17, 2023
2 mins read

UK banks shun companies trading with Ukraine

Banks insist they must abide by their legal and regulatory obligations, including those concerning compliance with Western sanctions on Russia — which currently occupies parts of Ukraine…reports Asian Lite News

Banks are forcibly closing the accounts of British firms that trade with Ukrainian counterparts due to concerns over Russian sanctions and money laundering, business leaders have warned, hampering wider efforts to support Ukraine’s war-ravaged economy.

In a letter to U.K. Treasury Minister Andrew Griffith British-Ukrainian Chamber of Commerce (BUCC) Co-Chair Bate Toms said British firms are increasingly “afraid to trade with Ukraine from the U.K.” due to the risk of being de-banked.

The letter, dated July 26 and also copied to U.K. Business and Trade Minister Nusrat Ghani, states the BUCC has received multiple complaints from firms who have had bank accounts closed — or their attempts to set up accounts rejected — because of dealings in Ukraine.

“Conducting even one Ukrainian transaction can lead to an account being closed,” Toms wrote. “U.K. banks generally refuse to open accounts if any Ukrainian trade is contemplated.”

Banks insist they must abide by their legal and regulatory obligations, including those concerning compliance with Western sanctions on Russia — which currently occupies parts of Ukraine. Transactions with non-government-controlled regions in Ukraine are complex, banks argue, and delays can occur while checks are completed. They insist trade with Ukraine is not prohibited outright, Politico reported.

Toms, however, wants the government’s recently-launched review of the de-banking of Politically Exposed Persons (PEPs) — triggered by former Brexit Party leader Nigel Farage’s dispute with luxury bank Coutts — to also consider how British banks are handling business transactions with Ukraine.

“If trade from the U.K. with Ukraine is not possible for SMEs [small and medium-sized enterprises], the U.K.’s and Ukraine’s economies will suffer, harming Ukraine’s ability to fund its defense and making Ukraine even more dependent on foreign assistance,” he warned.

Toms’ letter notes that “decades ago,” Ukraine had been designated by British banks as a “risky jurisdiction for their customers to do business with” — but insists that “Ukraine has since greatly improved its rule of law.”

U.K. banks’ interventions are “having a big impact on all of us who are doing our level best to support Ukraine during this traumatic period for the country,” said James Watkins, secretariat of the British-Ukrainian Business Council, and head of policy at the London Chamber of Commerce and Industry.

Bank account closures are an “ongoing problem [for U.K. SMEs],” he added, “not just actually with Ukraine but a whole range of other markets.”

Discussions around rebuilding Ukraine’s shattered economy are a live issue in Whitehall, and in June the British government co-hosted a Ukraine Recovery Conference for world leaders and financiers in central London.

Opening the conference, Prime Minister Rishi Sunak called for governments to work in tandem with international financial institutions and business leaders to help “fast-track” Ukraine’s recovery. “The British government will continue to play its full part,” he pledged, announcing a “multiyear commitment to support Ukraine’s economy.”

ALSO READ-Russia targets Ukraine’s Odesa port

Previous Story

Georgia election was not stolen: Pence

Next Story

I am happy to be called Tulsi Bhai: WHO Chief

Latest from -Top News

Trump Declares Trade War on Foreign Films

He accused other countries of offering all sorts of incentives and drawing filmmakers and studios away from the US….reports Asian Lite News US President Donald Trump on Monday (Indian time) announced a

SYRIA RAIDS: Arab League Slams Israel

The Arab League condemned the airstrikes and called on the international community and the United Nations to confront what it described as “repeated violations committed by Israel against the Syrian state.” The

Singapore’s Ruling Party Achieves Landslide Victory

Prime Minister Lawrence Wong, whose party won the election, thanked supporters.,..reports Asian Lite News Singapore’s ruling People’s Action Party (PAP) won 87 of the 97 seats in Parliament in Saturday’s general election,

Jaishankar, Lavrov Discuss Pahalgam Terror Attack

Both the Ministers discussed issues of Russian-Indian cooperation and the aggravation of India-Pakistan relations following the terrorist attack in Pahalgam. External Affairs Minister (EAM) S. Jaishankar spoke to the Russian Foreign Minister

Ukrainian forces to join VE  procession  

Ukrainian personnel will join around 1,000 UK armed forces members, including soldiers on horseback and military bands, to symbolise “the global support for their continued fight for freedom” against Russia  krainian armed
Go toTop

Don't Miss

‘EU not to take sides, but to stand between Russia and Ukraine

The task of the European Union is not to take sides, but

WE ARE WITH YOU UKRAINE

 ‘London stands with Ukraine’ will take place tomorrow (SATURDAY, 26th