ANNOUNCEMENT 03 Mar 2022

3rd March, 2022 - The Japanese government announced economic sanctions in response to the Russian invasion of Ukraine.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Japan Ministry of Foreign Affairs, March 3rd, 2022. (ウクライナ情勢に関する外国為替及び外国貿易法に基づく措置について)
https://www.mofa.go.jp/mofaj/press/release/press4_009291.html

Inception date: 03 Mar 2022 | Removal date: open ended

Controls on commercial transactions and investment instruments

On 3rd March, 2022, the Japanese Ministry of Foreign Affairs (MOFA) announced that, in response to the Russian invasion of Ukraine, it was enacting further economic sanctions. This round included an asset freeze that targeted firms in Russia, certain parts of Ukraine and Belarus. The MOFA announcement also stated that export bans on goods destined for Belarus were also planned.

The 'asset freeze' was outlined as case-by-case approval for payments to and from the individuals and firms on the list, as well as the same case-by-case approval for 'capital transactions (deposit contracts, trust contracts and monetary loan contracts)'. The targets of the immediate sanctions were two Belarusian 'groups':

  1. State Authority for Military Industry of the Republic of Belarus;
  2. Minsk Wheel Tractor Plant [MZKT].

Additionally, there were also a number of individual sanctions imposed. The measures went into effect immediately, except for those applying to the 4 Russian banks, please see the other intervention pertaining to this state act for information on these.

AFFECTED SECTORS

 
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Inception date: 02 Apr 2022 | Removal date: open ended

Controls on commercial transactions and investment instruments

The Japanese Ministry of Foreign Affairs (MOFA) released an announcement on 3rd March, 2022, which detailed new economic sanctions to be applied to Russian, Belarusian and Ukrainian entities in response to the Russian invasion of Ukraine. These measures included 'asset freezes' on 4 Russian banks, for which a grace period until 2nd April, 2022, was given before the sanctions would be applied.

The banks in question were:

  1. VTB;
  2. Sovcombank;
  3. Novikombank;
  4. Otkritie.

The capital control measures consist of an 'asset freeze', which means all payments to and from those included on the list of targets must be approved by the Japanese government individually. The same applies to 'capital transactions (deposit contracts, trust contracts and monetary loan contracts)'. This so-called 'approval system' is Japanese policy speak for a ban, and was reported as such in press releases from the Japanese government, as well as the general media.

 
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