UK Credit

UK imposes asset freezes on Sberbank, Credit Bank of Moscow and prominent Russian oligarchs active in key sectors as part of latest package | Kelley Drye & Warren LLP


Today the UK announced its next set of sanctions against Russia.

The measures, elements of which were implemented today, are aimed at reducing dependence on Russian energy and further degrading Russia’s economy and capabilities. In today’s action, the UK extended its financial sanctions to subject Sberbank, the Moscow Credit Bank and Russian oligarchs to asset freeze restrictions. Further action, including a ban on outbound investment from the UK to Russia, is expected.

The UK has imposed asset freeze sanctions on the following top Russian oligarchs involved in key sectors such as energy, fertilizers and diamonds:

  • Ivanov, Sergei Sergeivich, chairman of Alrosa, a major diamond producer;
  • Rotenberg, Boris Borisovich, the son of a co-owner of SGM, Russia’s largest gas pipeline producer;
  • Akimov, Andrey Igorevich, CEO of Gazprombank, one of Russia’s largest banks;
  • Dyukov, Alexander Valeryevich, CEO of GazpromNeft, a major state-owned oil producer in Russia;
  • Kogogin, Sergey Anatolyevich, director of Kamaz, a manufacturer of trucks and buses used by the Russian army;
  • Guryev, Andrey Grigoryevich, close associate of Putin and founder of PhosAgro, a fertilizer company;
  • Mikhelson, Leonid Viktorovich, founder and CEO of Novatek, the leading natural gas producer;
  • Kantor, Vyacheslav, the main shareholder of Acron, a fertilizer company.

All accounts and other funds or economic resources, as well as all funds held or controlled by designated persons and entities in the United Kingdom must be frozen and UK persons must refrain from dealing with frozen funds or assets, except authorisation. As with blocking restrictions in the United States, reporting and anti-circumvention requirements apply.

That said, the UK has issued and amended temporary general licenses allowing certain transactions with Credit Bank of Moscow and Sberbank, respectively. Under these general licenses, persons subject to UK jurisdiction may terminate transactions involving Credit Bank of Moscow, including the closing of any position, and any other activity reasonably necessary to carry out such permitted liquidation activities. The license for transactions with the Credit Bank of Moscow expires on May 6, 2022. In addition, under certain conditions, UK credit or financial institutions are permitted to process sterling-denominated payments involving Sberbank for manufacturing purposes. crude oil, petroleum products and gas. available in the UK. Authorization expires June 24, 2022.

[View source.]