South Korea has put seven Russian banks on a sanctions list, while banning trade in new Russian government bonds to press for an end to Russia’s invasion of Ukraine.
South Korean financial transactions with Sberbank
VEB, PSB, VTB
Otkritie, Sovcom and Novikom, as well as their subsidiaries, should be suspended in line with the U.S.-set sanctions schedules, according to a statement released by the finance ministry in Seoul late Tuesday.
South Korean public and financial institutions should also stop trading in any Russian government bonds issued from March 2, said the statement.
Seoul on Monday joined global sanctions against Moscow to press for a resolution to the war in Ukraine.
South Korea has pledged to ban or restrict its exports of strategic and non-strategic items to Russia and to block Russian banks from the Swift global interbank network.
South Korean banks’ exposure to Russia is estimated by financial authorities at $1.47 billion, which accounts for 0.4% of their total external exposure.
South Korea set aside 2 trillion won ($1.66 billion) in an emergency financial fund for local exporters who could be hit by the Russian-Ukraine conflict.