By MILLIE TURNER, cityam.com
The UK government has imposed fresh sanctions targeting Russia’s aviation and space industry, meaning that businesses cannot access the UK insurance sector.
The measures, hauled in in response to Russia’s invasion of Ukraine, will “severely limit” access to the global insurance and reinsurance market, the UK government announced today.
The European Union (EU) is expected to follow with similar actions to limit what Russian businesses can access on the global stage.
“Through Lloyd’s and the London Market, the UK is a world leader in these sectors of the global insurance market. In taking such action, the UK is demonstrating its commitment to apply severe economic sanctions in response to Russia’s invasion of Ukraine,” the government said in a statement.
London’s insurance market is the world’s largest commercial and speciality insurance centre.
The UK government imposed a second round of sanctions on Russia just yesterday, as well as fresh restrictions on Belarus, which has joined Russia in the invasion of neighbouring Ukraine.
The UK became the first country to ban all Russian ships from entering UK ports.
New measures hauled in on Wednesday by foreign secretary Liz Truss prohibit UK individuals and entities from providing financial services to the Central Bank of the Russian Federation, as well as the Ministry of Finance and National Wealth Fund.
Russia’s state-owned sovereign wealth fund and its chief executive have also been sanctioned, which means the majority of Russia’s financial system is now covered by UK sanctions.
“Putin and his allies must feel the full consequences of their vicious and illegal invasion of Ukraine,” said transport secretary Grant Shapps. “That’s why from today, I’m instructing all UK ports to turn away any vessel that is flagged, registered, owned, or operated by Russia.
“By banning Russian ships from our ports, we are further isolating Russia and crushing its economic capabilities, starving Putin’s war machine.”