US Sanctions to Hit Eight Belarusian Banks, Though Only One Is On List
- 10.08.2021, 16:14
Experts explain why.
Yesterday the U.S. introduced a new package of sanctions - expanded and very sensitive to the regime. The list includes only Absolutbank, but in fact, the sanctions list will hit other banks in the country as well. InfoBank.by explains why.
Why is Absolutbank on the list? This is a consequence of personal sanctions against businessman and oligarch Nikolai Vorobei, closely linked to Lukashenka. A document describing the nature of the sanctions states:
"Novopolotsk-based Interservice Limited Liability Company, formerly owned by Vorobei, is one of the largest oil traders in Belarus. Its subsidiaries include Absolutbank and the Industrial Unitary Enterprise Oil Bitumen Plant (OBP).
But that is not all, there is also such a document as the Executive Order on Blocking Property of Additional Persons Contributing to the Situation in Belarus.
The general gist of the document is that there will be an expansion of sanctions not on specific legal entities, but much wider. Please note what is meant by the term "Government of Belarus":
"... (b) The term 'Government of Belarus' means the Government of Belarus, any political subdivision, agency, or instrumentality thereof, including the National Bank of the Republic of Belarus, and any person owned, controlled, or directed by, or acting for or on behalf of, the Government of Belarus;".
Here we see a reference to the NB RB, and at least one can include all state banks or banks with the involvement of the state or state bodies. Here they are:
National Bank of the Republic of Belarus
Belarusbank
Belagroprombank
Belinvestbank
Belgazprombank (the State Property Committee of the Republic of Belarus is a shareholder)
Bank Dubrabyt (99.75% owned by the NB RB)
MTBank (Minsk City Territorial Fund of State Property is among shareholders).
Thus, eight banks in Belarus will be sanctioned: National Bank, Absolut Bank and six additional banks. The total number of registered banks in Belarus is twenty four. Belarusian banks will have to somehow adjust to the adopted sanctions, as well as those U.S. sanctions, which will be introduced based on the document mentioned above.