Major UAE banks restricted settlements with Russia and began to close customer accounts - media
Kyiv • UNN
The UAE's largest banks have restricted settlements with Russia and started closing client accounts due to the risk of secondary sanctions.
Banks of the United Arab Emirates (UAE) have limited settlements with Russia and started closing accounts of companies and individuals due to the risk of secondary sanctions. This is reported by the Russian media with reference to businessmen working in the UAE and a representative of the association "Business Russia", writes UNN.
Currently, UAE banks do not accept money from Russia and do not make payments in the opposite direction. Moreover, they continue to close accounts for companies whose owners are Russian citizens, including for non-transparent reasons,
Details
It is noted that the difficulties began long before the US President's decree on secondary sanctions was issued in December 2023, after which countries such as Turkey and China dramatically changed their policies towards clients from Russia.
It is noted that UAE banks began to tighten their policy towards clients with Russian citizenship in the fall of 2023. At that time, credit institutions stopped accepting payments from Russia.
A bank in Hong Kong had to be added to the payment chain, but since February 2024, it has refused to cooperate, and payments are now made in cryptocurrency. For companies with Russian beneficiaries that do not receive money from Russia and do not transfer it to Russia, the situation with banking services has become more complicated,
The trend was also confirmed by tax and legal advisors. The Russian government is aware of the problem, although it considers it non-critical and solvable, a source close to the Russian Cabinet of Ministers told the publication.
The interlocutors of the publication noted that it is still possible for individuals or legal entities from Russia to open an account in UAE banks, but the procedure takes longer, and personal acquaintances with representatives of local elites can speed it up.
Recall
Turkish banks have begun to close the accounts of an increasing number of Russian companies and impose stricter requirements on individuals due to a tightening of policies towards Russian clients amid sanctions imposed in connection with the war in Ukraine.
